Impairment of Fixed Assets Due to Declining Store Profitability
First written in FY2024. 2 of 3 entries say "Materialised", first in FY2024. Latest entry: FY2026.
Daiwa Cycle moved to the "Worse" side of this theme in 2024, 7 years after the typical company in this theme (2017).
The whole theme swung hardest in 2025: 32 of 75 companies on the "Worse" side.
28 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「To prevent impairment, when opening a new store we conduct a detailed analysis of the store's future profitability before proceeding, and after opening, the Board of Directors reviews monthly performance and takes measures as necessary.」
In response to the risk of impairment due to declining store profitability, the company disclosed pre-opening profitability analysis and monthly reviews by the Board of Directors as measures. No impairment loss occurred during the fiscal year. - FY2025MaterialisedAnnual report
「As a result, the carrying amount of an asset group whose profit or loss from operating activities is continuously negative, or is expected to remain continuously negative, is reduced to its recoverable amount, and the reduction of ¥24.515 million is recorded as an impairment loss under extraordinary losses.」
Impairment due to declining store profitability also occurred in FY2025, with ¥24.515 million recorded for operating stores in Hyogo and Kanagawa prefectures. The amount increased from ¥13.502 million in the previous fiscal year. - FY2024MaterialisedAnnual report
「The carrying amount of an asset group whose profit or loss from operating activities is continuously negative, or is expected to remain continuously negative, is reduced to its recoverable amount, and the reduction of ¥13.502 million is recorded as an impairment loss under extraordinary losses.」
The risk of declining store profitability materialized at an operating store in Nara Prefecture, resulting in an impairment loss of ¥13.502 million.