Risk of Declining Duty-Free and Merchandise Sales Due to COVID-19
First written in FY2020-Q3. 6 of 13 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2024-Q1.
The whole theme swung hardest in 2024: 2 of 9 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「Economic activity continued to normalize as inbound demand recovered following the reclassification of COVID-19 as a Class 5 infectious disease, the lifting of restrictions on activities, and the removal of travel restrictions.」
The impact of COVID-19 on store and tax-free sales was alleviated by its reclassification as a Class 5 infectious disease, the lifting of restrictions on activities and travel restrictions, and the recovery in inbound demand. - FY2023-Q3WorsenedAnnual report
「To respond to the unstable market environment described above, our Group continued reducing its inventory of high-priced products during the first nine months of the current consolidated fiscal year. Although sales declined, profits improved substantially, partly because travel restrictions resulting from the rapid spread of COVID-19 infections in China following the shift in China's COVID-19 policy remained in place.」
Consolidated net sales were ¥9,978 million, down 22.6% year on year, due to the rapid spread of infections and travel restrictions following China’s shift in COVID-19 policy, as well as the impact of reducing high-value inventory. - FY2023-Q2WorsenedAnnual report
「The Group’s net sales for the second-quarter cumulative period were ¥6,687 million, down ¥1,577 million year on year, or 19.1%. The main factors were as follows.」
Due to the impact of the spread of COVID-19 and efforts to reduce luxury-goods inventories, consolidated net sales fell 19.1% year on year, and the adverse impact on sales continued. - FY2023-Q1WorsenedAnnual report
「The Group’s net sales for the first-quarter cumulative period were ¥3,710 million, down ¥446 million year on year, or 10.7%. The main factors were as follows.」
As the prolonged spread of COVID-19 and the effects of the seventh wave of infections continued, consolidated net sales for the first quarter fell 10.7% year on year, quantifying a renewed adverse impact on sales. - FY2022MitigatedAnnual report
「The Group’s net sales for the consolidated fiscal year were ¥12,606 million, down ¥4,664 million year on year, or 27.0%.」
Although the previous year’s COVID-19-related decline in sales continued to affect full-year results, net sales for the consolidated fiscal year recovered to ¥17,381 million, up 37.9% year on year, and online sales also increased. - FY2022-Q3MitigatedAnnual report
「Daikokuya’s monthly sales turned higher year on year in the current fiscal year, at ¥1,297 million in October, ¥1,680 million in November, and ¥1,587 million in December. This was due to the lifting of the state of emergency at the end of September, a sharp decline in the number of infections from October onward, and further easing of travel restrictions.」
Against the decline in sales caused by the spread of infection and operating restrictions, Daikokuya’s monthly sales recovered to year-on-year growth amid the lifting of the state of emergency and the easing of travel restrictions. - FY2022-Q2MitigatedAnnual report
「The Group’s net sales for the second-quarter cumulative period increased significantly to ¥8,265 million, up ¥2,940 million year on year, or 55.2%.」
Against the decline in sales in the previous year caused by COVID-19, consolidated net sales for the second-quarter cumulative period increased 55.2% year on year, indicating a recovery in performance. However, references to weak inbound demand and operating restrictions continued. - FY2022-Q1MitigatedAnnual report
「The Group’s net sales for the first-quarter cumulative period increased significantly to ¥4,157 million, up ¥2,188 million year on year, or 111.1%, more than doubling.」
Against the decline in sales in the previous year caused by COVID-19, consolidated net sales for the first quarter increased 111.1% year on year, indicating a recovery in performance. However, weak inbound demand and operating restrictions continued. - FY2021MaterialisedAnnual report
「The Group’s net sales for the consolidated fiscal year were ¥12,606 million, down ¥4,664 million year on year, or 27.0%.」
The effects of weak inbound demand due to COVID-19, requests to refrain from going out, and operating restrictions were reflected in full-year performance, with consolidated net sales down 27.0% year on year. In contrast, merchandise sales from online stores increased 44.3% year on year. - FY2021-Q3MitigatedAnnual report
「From the second quarter after the state of emergency was lifted, covering July to December 2020, net sales began to recover. In particular, demand for online purchases of branded goods increased, helped by stay-at-home consumption, remote work and other factors.」
Although the cumulative decline in sales caused by the COVID-19 pandemic remained, net sales recovered after the state of emergency was lifted, and demand for online purchases increased. - FY2021-Q2MaterialisedAnnual report
「First, at Daikokuya, the core company of the Group, net sales for the second-quarter cumulative period were ¥5,184 million, down ¥2,758 million year on year, or 34.7%. This was attributable to first-quarter net sales falling sharply to ¥1,905 million, down ¥2,101 million year on year, or 52.4%, due to shorter business hours during the COVID-19 pandemic, a sharp decline in foreign tourists, requests to refrain from going out under the state of emergency, and other factors.」
Daikokuya’s cumulative net sales fell 34.7% year on year, while first-quarter sales fell 52.4%, due to the COVID-19 pandemic, shorter business hours, the sharp decline in foreign tourists, and requests to refrain from going out. - FY2021-Q1MaterialisedAnnual report
「The Group’s net sales for the first-quarter cumulative period were ¥1,969 million, down ¥2,731 million year on year, or 58.1%. The main factors were as follows. First, at Daikokuya, the core company of the Group, net sales for the first-quarter cumulative period were ¥1,906 million, down ¥2,101 million year on year, or 52.4%, due to the impact of the COVID-19 pandemic.」
The decline in tax-free and merchandise sales caused by COVID-19 was reflected in actual performance, with consolidated net sales down 58.1% year on year and Daikokuya’s sales down 52.4%. - FY2020-Q3First statedAnnual report
「However, in view of the impact of measures taken by countries in response to COVID-19 on Daikokuya’s tax-free sales, merchandise sales are expected to decline during the current fiscal year.」
The Company for the first time described as a future performance risk the possibility that measures taken by countries in response to COVID-19 would affect tax-free sales and cause merchandise sales to decline during the period.