Excess Inventory and Product Valuation Losses in the Direct Marketing Business
First written in FY2025-Q1. 1 of 2 entries say "Restated". Latest entry: FY2025-H1.
The whole theme swung hardest in 2026: 23 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「The Group orders products based on sales plans prepared from forecasts of customer demand, manages inventory centrally through its inventory system, and monitors inventory receipts, shipments and holdings daily. It also monitors and manages sales performance, and seeks to mitigate the risk of excess or slow-moving inventory by reviewing sales strategies in a timely manner in response to customer demand trends and other external factors and managing order volumes.」
The Company has reconfirmed specific measures to address the risk of excess inventory and inventory valuation losses, including demand forecasting, centralised and daily inventory management, and reviews of sales strategies and order volumes. - FY2025-Q1First statedAnnual report
「In the Group's direct marketing business, products are sold while maintaining appropriate inventory levels based on forecasts of customer demand. However, if sales perform poorly because of changes in customer demand or the external environment, excess inventory may arise, and the recognition of inventory valuation losses and other factors may affect the Group's operating results and financial condition.」
The risk of excess inventory and inventory valuation losses resulting from changes in demand and poor sales performance was added as a new major risk in the direct marketing business. Measures include demand forecasting, daily management through the inventory system, and reviews of sales strategies and order volumes.