Risk of Obsolescence and Long-Term Inventory Retention for Secondhand Branded Goods
First written in FY2016. 6 of 17 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Daikokuya Holdings moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2026: 23 of 41 companies on the "Worse" side.
5 other companies' latest entry also says "Other".
- FY2026Inventory build-up and the disposal of non-performing inventory occurring concurrentlyAnnual report
「Since December, we have stepped up merchandise purchases and proceeded with displaying products in stores, accelerating efforts to expand store sales and increase in-store purchases as customer traffic grows.」
Merchandise and finished goods increased by ¥1,714 million as purchases were stepped up from December onward, while the disposal of non-performing inventory from prior periods and store impairment losses also occurred, resulting in inventory recovery and inventory-risk measures proceeding concurrently. - FY2025RestatedAnnual report
「Most of the products handled by 大黒屋 change in line with prevailing trends and market needs. To prevent products from becoming obsolete and turning into long-held inventory, we set selling prices with the aim of maintaining an average inventory turnover period of 90 days and work to maintain appropriate inventory levels. However, changes in trends and customer needs could cause products to become obsolete and result in long-held inventory.」
The policy of managing inventory with an average turnover period of 90 days as a benchmark and the risk of inventory obsolescence resulting from changes in trends and customer needs were reconfirmed. - FY2024-Q2RestatedAnnual report
「In particular, the inventory turnover period for bags has remained within 30 days. In light of this situation, we will continue to reduce excess inventory while closely monitoring market conditions and work to secure inventory at appropriate prices.」
The status of a bag inventory turnover period of within 30 days and the policy of reducing excess inventory while monitoring market conditions and securing inventory at appropriate prices were reconfirmed. - FY2024-Q1MitigatedAnnual report
「In particular, the inventory turnover period for bags has remained within 30 days. In light of this situation, we will continue to reduce excess inventory while closely monitoring market conditions and work to secure inventory at appropriate prices.」
Amid continued confusion in the luxury-brand market, the inventory turnover period for bags remained within 30 days, and efforts to reduce excess inventory and secure inventory at appropriate prices continued. - FY2023-Q3MitigatedAnnual 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.」
To respond to unstable market conditions for luxury products, we continued reducing high-priced inventory. Merchandise and finished goods on the balance sheet also declined by ¥817 million from the end of the previous fiscal year. - FY2023-Q2MitigatedAnnual report
「To respond to the unstable market environment described above, our Group worked to reduce its inventory of high-priced products. As a result, together with the spread of COVID-19 infections, sales and profits declined during the first half of the current second-quarter consolidated cumulative period.」
To respond to unstable market conditions for luxury products, we proceeded with the reduction of high-priced inventory. Merchandise and finished goods also declined by ¥308 million from the end of the previous consolidated fiscal year, reflecting measures to address inventory risk. - FY2023-Q1MaterialisedAnnual report
「Despite higher yen-denominated prices resulting from the yen's depreciation, luxury-brand prices have fallen sharply, reducing liquidity in the secondhand-goods market and causing confusion in market prices.」
The decline in luxury-brand prices and liquidity in the secondhand-goods market actually occurred, bringing risks related to inventory prices and prolonged holding to the fore. - FY2022RestatedAnnual report
「To prevent products from becoming obsolete and turning into long-held inventory, we set selling prices with the aim of maintaining an average inventory turnover period of 90 days and work to maintain appropriate inventory levels. However, changes in trends and customer needs could cause products to become obsolete and result in long-held inventory」
The policy of managing inventory with an average turnover period of 90 days as a benchmark and the risk of inventory obsolescence resulting from changes in trends and customer needs were reconfirmed. - FY2019RestatedAnnual report
「To prevent products from becoming obsolete and turning into long-held inventory, we set selling prices with the aim of maintaining an average inventory turnover period of 90 days and work to maintain appropriate inventory levels. However, changes in trends and customer needs could cause products to become obsolete and result in long-held inventory.」
The policy of managing inventory with an average turnover period of 90 days as a benchmark and the risk of inventory obsolescence resulting from changes in trends and customer needs were reconfirmed. - FY2018-Q1MitigatedAnnual report
「With the effect of inventory optimization from the emergency measures implemented in the previous consolidated fiscal year, sales have continued to show a recovery trend since the fourth quarter of the previous consolidated fiscal year.」
The effects of inventory optimization, including changes in the product mix and inventory replacement, continued, and sales showed a recovery trend. - FY2017MitigatedAnnual report
「The inventory turnover rate recovered to 3.9 turns over the four months from December 2016 through March 2017, and we expect this turnover rate to continue in the next fiscal year.」
After the inventory adjustment, the inventory turnover rate recovered to 3.9 turns over four months, indicating the position following measures to address the risk of long-held inventory. - FY2017-Q3MaterialisedAnnual report
「To respond to this environment, from July through August we replaced inventory by lowering the selling prices of products purchased when the yen was weak. In particular, from July through September last year, inventory unit costs exceeded selling unit prices. Through this inventory adjustment, we reduced merchandise inventory by ¥1,155 million over two months and eliminated the impact of foreign exchange resulting from the yen's appreciation over a short period.」
To address inventory accumulation and obsolescence associated with the yen's appreciation and shrinking demand for high-priced products, inventory was reduced by ¥1,155 million over two months. - FY2017-Q2MaterialisedAnnual report
「The disposal of products purchased when the yen was weak resulted in a gross profit margin of 26.0%, down 4.1% year on year, and gross profit of ¥1,963 million, down ¥608 million year on year.」
Inventory adjustments associated with the disposal of high-priced products and other items purchased when the yen was weak appeared in performance as declines in the gross profit margin and gross profit. - FY2017-Q1MaterialisedAnnual report
「However, because of the recent sharp appreciation of the yen, we have been promoting inventory replacement in line with market prices by curbing market purchases, as described above. As demand from China for the high-priced products mentioned above contracted sharply, we have been adjusting inventory, and this inventory adjustment has begun to affect our performance.」
The appreciation of the yen and sharp contraction in Chinese demand led to inventory adjustments, particularly for high-priced products, which were stated to have actually affected performance. - FY2016First statedAnnual report
「To prevent products from becoming obsolete and turning into long-held inventory, we set selling prices with the aim of maintaining an average inventory turnover period of 90 days and work to maintain appropriate inventory levels. However, changes in trends and customer needs could cause products to become obsolete and result in long-held inventory.」
The inventory management policy uses an average inventory turnover period of 90 days as a benchmark, while noting the risk of inventory obsolescence resulting from changes in trends and customer needs.