Strengthening and accelerating the expansion of the pawn and secondhand goods trading businesses

「As a result, sales in the pawnshop and secondhand goods trading businesses amounted to ¥11,131 million, up ¥1,230 million, or 12.4%, year on year, while the operating loss was ¥301 million, an improvement of ¥216 million from the previous fiscal year.」

「In the current consolidated fiscal year, sales and operating loss in the pawnshop and secondhand goods trading businesses amounted to ¥9,901 million, a decrease of ¥770 million, or 7.2%, year on year, and ¥517 million, a decrease of ¥710 million year on year, respectively.」

「In the six-month period ended in the current interim consolidated accounting period, sales and operating loss in the pawnshop and secondhand goods trading businesses amounted to ¥4,819 million, a decrease of ¥558 million, or 10.4%, year on year, and a loss of ¥173 million, a decrease of ¥351 million year on year, respectively.」

「In the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥10,671 million, a decrease of ¥1,498 million, or 12.3%, year on year, and ¥192 million, a decrease of ¥265 million, or 57.9%, year on year, respectively.」

「In the nine-month period ended in the third quarter of the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥8,235 million, a decrease of ¥1,537 million, or 15.7%, year on year, and ¥257 million, a decrease of ¥140 million, or 35.3%, year on year, respectively.」

「As described in the overview of operating results, the main factors were that sales declined as inventory levels at 大黒屋 fell, but operating profit increased as a result of higher inventory turnover for products with high gross margins and efforts to reduce costs.」

「In the three-month period ended in the first quarter of the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥2,801 million, a decrease of ¥846 million, or 23.2%, year on year, and ¥144 million, an improvement of ¥33 million, or 30.4%, year on year, respectively.」

「In the nine-month period ended in the third quarter of the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥9,772 million, a decrease of ¥2,909 million, or 22.9%, year on year, and ¥398 million, an improvement of ¥183 million, or 85.15%, year on year, respectively.」

「The decline was due to 大黒屋 taking a more cautious approach to efficient inventory management to mitigate the potential cost burden arising from volatility in luxury goods prices, as described earlier in the section on the business environment, and changing its product mix by specializing certain stores in purchasing only.」

「The decline was due to 大黒屋 taking a more cautious approach to efficient inventory management to mitigate the potential cost burden arising from volatility in luxury goods prices, as described earlier in the section on the business environment, and changing its product mix by specializing certain stores in purchasing only.」

「In the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥17,104 million, an increase of ¥4,784 million, or 38.8%, year on year, and operating profit of ¥352 million, an improvement of ¥417 million year on year, respectively.」

「In the nine-month period ended in the third quarter of the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥12,682 million, an increase of ¥4,140 million, or 48.5%, year on year, and operating profit of ¥215 million, an improvement of ¥318 million year on year, respectively.」

「In Japan, 大黒屋, the core company of the Group, operates 24 stores nationwide based on its brand and expertise developed over more than 70 years since its founding. To meet ordinary consumers' funding and cash-conversion needs amid the COVID-19 pandemic, the company focused on upgrading its website to strengthen home-visit purchasing and online purchasing alongside its traditional pawnshop business, a form of consumer finance. In the six-month period ended in the second quarter of the current consolidated fiscal year, sales and operating profit in the pawnshop and secondhand goods trading businesses amounted to ¥8,114 million, an increase of ¥2,929 million, or 56.5%, year on year, and operating profit of ¥118 million, an improvement of ¥130 million year on year, respectively.」

「In Japan, 大黒屋, the core company of the Group, operates 24 stores nationwide based on its brand and expertise developed over more than 70 years since its founding. To meet ordinary consumers' funding and cash-conversion needs amid the COVID-19 pandemic, the company focused on upgrading its website to strengthen home-visit purchasing and online purchasing alongside its traditional pawnshop business, a form of consumer finance.」

「In Japan, 大黒屋, the core company of the Group, operates 24 stores nationwide based on its brand and expertise developed over more than 70 years since its founding. To meet ordinary consumers' funding and cash-conversion needs amid the COVID-19 pandemic, the company focused on upgrading its website to strengthen home-visit purchasing and online purchasing alongside its traditional pawnshop business, a form of consumer finance.」

「Amid the COVID-19 pandemic, 大黒屋 Co., Ltd. (hereinafter, 大黒屋), the core company of the Group, continued operating mainly as a pawnshop in order to fulfill its role as social infrastructure. As a result, sales in the first quarter of the current consolidated fiscal year (April to June 2020) declined partly due to the impact of the state of emergency and other factors, but sales began to recover from the second quarter (July to September 2020) after the state of emergency was lifted. In particular, demand for purchasing branded goods online increased, supported by stay-at-home consumption and remote work.」

「We will assign personnel to the home-visit purchasing business, which was launched in earnest in the previous consolidated fiscal year, and further strengthen the pawnshop business, including home-visit pawning services. In particular, we will actively approach the silver generation, which is expected to have strong demand for converting branded goods into cash, and respond to customer needs.」

「The Group is centered on 大黒屋 Co., Ltd. (hereinafter, 大黒屋). In addition to its existing business of purchasing and selling branded secondhand goods and operating pawnshops, the Group is focusing on expanding the purchase and sale of secondhand goods and pawnshop operations to attract customers among the silver generation, which offers stable revenue opportunities and potential for future growth. We are reorganizing our business portfolio and selectively concentrating resources to return to the pawnshop industry's fundamental role for general customers in Japan, while establishing a structure to strengthen our purchase and sale business targeting China, which is also one of the Group's core markets.」

「In addition to the existing purchase and sale of branded secondhand goods and pawnshop operations, we are focusing on purchasing and selling secondhand goods and operating pawnshops for the silver generation, a market expected to provide stable earnings and future growth. At the same time, we have established a structure to reorganize our business portfolio and selectively concentrate resources in order to return to the pawnshop industry's fundamental role for general customers in Japan, while further strengthening our China-focused business, which serves the Group's core customer base.」

「In Japan, 大黒屋, the core company of the Group, operates 24 stores nationwide based on its brand and expertise developed over more than 70 years since its founding. The Kawasaki store, opened as its 26th store in October last year, contributed to performance from the second half of the previous fiscal year, while the Ginza Chuo-dori store began operating as a pawnshop in April this year, with both stores contributing to results.」

「As a result, sales for 大黒屋 in the current consolidated fiscal year amounted to ¥16,812 million, up ¥1,646 million, or 10.9%, year on year. This was attributable to sales to foreign tourists, namely tax-free sales, increasing by ¥1,203 million, or 22.0%, year on year, while combined sales of store merchandise in Japan and tax-free sales rose significantly by ¥1,404 million, or 12.3%, year on year.」

「Against this backdrop, sales at 大黒屋 to foreign tourists, which had been recovering since the previous fiscal year, remained particularly strong. As a result, sales amounted to ¥12,483 million, a significant year-on-year improvement of ¥1,142 million, or 10.1%.」

「In addition, 大黒屋 will launch a major advertising campaign, including television commercials, toward the end of the current fiscal year to further improve performance.」

「In the previous consolidated fiscal year, refinancing was carried out in Japan, securing funds to build up inventory, and sales began to increase from the fourth quarter. Overseas, a decision was made to refinance existing borrowings, and the following measures are planned for the current consolidated fiscal year.」

「Daikokuya's nine-month cumulative sales were ¥11,341 million, up ¥92 million, or 0.8%, year on year. Sales to foreign tourists, which had been sluggish, increased by ¥1,225 million, or 44.5%, year on year, while store product sales increased by ¥1,311 million, or 18.1%. During the fiscal year, two new stores, Ikebukuro West Exit and Hakata, opened in August 2017, followed by the Ginza Chuo-dori store in November. As a result, operating profit was ¥615 million, up ¥288 million, or 88.3%, year on year.」

「At Daikokuya, sales have continued to recover since the fourth quarter of the previous consolidated fiscal year, partly as a result of the inventory optimisation measures implemented during that year. During the first-quarter consolidated cumulative period, sales also reflected a strong domestic economy, stable foreign exchange rates with limited volatility, and continued growth in inbound visitors, which reached 13.75 million as of the end of June 2017, up 17.4% year on year. Daikokuya's first-quarter sales were ¥3,690 million, up ¥116 million, or 3.3%, year on year.」

「(a) Maintain the inventory turnover ratio, which recovered from January 2017 onward, and seek to increase sales and improve margins; (b) increase the number of stores opened in prime locations, such as the Machida and Fukuoka Tenjin Main stores opened during the period.」

「Although Daikokuya's duty-free sales have lost their previous momentum, the Company will proactively pursue the pawnshop and used-goods trading businesses, where a recovery in domestic customers is expected, by operating each branch efficiently, securing margins through purchases at appropriate prices, and actively opening new stores, including Daikokuya Machida and Daikokuya Fukuoka Tenjin Main Store.」

「Although Daikokuya's duty-free sales have lost their previous momentum, the Company will proactively pursue the pawnshop and used-goods trading businesses, where a recovery in domestic customers is expected, by operating each branch efficiently, securing margins through purchases at appropriate prices, and actively opening new stores, including Daikokuya Machida and the tentatively named Daikokuya Fukuoka Tenjin store.」

「Strengthening and accelerating the expansion of the pawnshop and used-goods trading businesses」