Short-term adjustment of high-value inventory in response to yen appreciation and weaker demand
First written in FY2017-Q1. 21 of 32 entries say "Advanced", first in FY2017-Q2. Latest entry: 2026-08-10.
The whole theme swung hardest in 2026: 7 of 56 companies on the "Worse" side.
40 other companies' latest entry also says "Advanced".
- 2026-08-10AdvancedEarnings presentation
「While merchandise inventory increased steadily by ¥2,063 million year on year, cash and deposits also stood at ¥2,212 million, securing funds for future inventory purchases and growth investments.」
The increase in inventory of ¥2,063 million year on year was achieved, and funding for expanding purchases and reopening stores that had suspended sales in the second half was also indicated. - FY2026AdvancedAnnual report
「Partly because inventory purchase funds were provided in December and purchasing and sales capabilities were strengthened, consolidated revenue and gross profit for the fourth quarter turned to year-on-year growth.」
Funds provided for inventory purchases in December strengthened purchasing and sales capabilities, and fourth-quarter revenue and gross profit turned to year-on-year growth. Merchandise and finished goods also increased by ¥1,714 million from the end of the previous fiscal year. - FY2026-H1Prioritising continued low inventory and stronger inventory purchasesAnnual report
「Accordingly, we recognise restoring inventory, which is currently at its lowest level, to pre-COVID levels as the top priority for 大黒屋. By implementing the measures described above and strengthening inventory purchases to address this issue, we believe the earnings of 大黒屋 and our group will improve.」
The company stated that inventory remains at its lowest level and reaffirmed its policy of strengthening inventory purchases as part of its top-priority effort to restore inventory to pre-COVID levels. - FY2025AdvancedAnnual report
「We aim to restore the depressed inventory level to pre-COVID levels as partnership businesses progress, stock acquisition rights are exercised, approximately ¥2.1 billion is expected to be raised, and funds are returned to 大黒屋, among other factors. Specifically, inventory was approximately ¥3.6 billion in the fiscal year ended March 2018, and the average unit price of products is currently approximately 1.36 times higher. We therefore believe that we currently have inventory processing capacity of approximately ¥5.0 billion, and our top priority is to build inventory to approximately ¥5.0 billion. By achieving this, we believe we can generate revenue of approximately ¥17,107 million in the fiscal year ending March 2026, including ¥1,500 million from the business alliance with Mercari.」
The company set an explicit target of increasing inventory from approximately ¥1.4 billion currently to approximately ¥5.0 billion, above pre-COVID levels, and linked this to planned fundraising of approximately ¥2.1 billion, partnership businesses and revenue of approximately ¥17.1 billion in the fiscal year ending March 2026. - FY2025-H1Prioritising the continued recovery of low inventoryAnnual report
「Accordingly, we recognise restoring inventory, which is currently at its lowest level, to pre-COVID levels as the top priority for 大黒屋. To address this issue, we will raise funds to secure inventory financing and strengthen inventory purchases through purchasing initiatives at our existing store network and through the Otegaru Brand Purchase service.」
The company maintained its view that inventory remains at its lowest level and identified restoring it to pre-COVID levels as its top priority, citing fundraising, existing stores and online services as means of strengthening purchases. - FY2024Significant decline in inventory and recovery planAnnual report
「This resulted from inventory falling by approximately ¥2.3 billion from pre-COVID levels, from around ¥3.5 billion to approximately ¥1.2 billion currently, as inventory was reduced to the minimum level to avoid risk during the COVID-19 pandemic and working capital declined due to scheduled repayments under financing arrangements. Going forward, we will work to restore the depressed inventory level to pre-COVID levels as funds are returned to 大黒屋 through the exercise of stock acquisition rights and through additional financing and other measures.」
Inventory was reported to have declined from approximately ¥3.5 billion before COVID-19 to approximately ¥1.2 billion currently, with a policy of restoring it using funds from the exercise of stock acquisition rights and other sources. - FY2024-Q3AdvancedAnnual report
「As the exercise of share acquisition rights progresses and funds are returned to 大黒屋, together with other financing measures, we expect that restoring the depressed inventory level to the pre-COVID level will contribute to earnings by applying the historical average turnover period of 2.4 months to the increased inventory, and believe that EBITDA will improve.」
The policy has taken concrete shape: use funds from the exercise of stock acquisition rights and other sources to rebuild inventory, restore inventory to pre-COVID levels, and target higher revenue and EBITDA based on the historical average inventory turnover period of 2.4 months. - FY2024-Q2AdvancedAnnual report
「大黒屋's overall gross profit margin improved substantially to 30.0%, an improvement of 4.5 percentage points year on year. This was because purchasing and selling prices were reviewed as inbound demand recovered following the removal of the cap on the number of entrants, and the inventory turnover period shortened to 2.44 months from 2.59 months in the same period of the previous year. The turnover period for bags, which have a particularly high gross profit margin, also shortened.」
Revising purchasing and selling prices and managing inventory shortened the inventory turnover period from 2.59 months in the same period of the previous year to 2.44 months, while the gross profit margin improved by 4.5 percentage points to 30.0%. - FY2024-Q1AdvancedAnnual report
「大黒屋's business model is based on purchasing products from consumers in CtoB transactions and then selling them to consumers in BtoC transactions. It responds promptly to market fluctuations and uses price data built into its systems to purchase products from the general public at higher prices and sell them to other customers at lower prices. In particular, the inventory turnover period for bags has remained at no more than 30 days.」
Specified the use of price data to respond to market fluctuations and reported the specific operating performance of an inventory turnover period for bags of no more than 30 days. - FY2023-Q3RestatedAnnual 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. - FY2023-Q2AdvancedAnnual report
「At 大黒屋, this resulted from stepping back to manage inventory efficiently in order to mitigate the potential cost burden caused by turmoil in the luxury-goods market, and changing the product mix by converting some stores into purchase-only specialist stores.」
In response to turmoil in the luxury-goods market, the Company implemented efficient inventory management, converted some stores into purchase-only specialist stores, and changed the product mix. Products and finished goods decreased by ¥308 million from the end of the previous consolidated fiscal year. - FY2023-Q1AdvancedAnnual 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.」
Stated that, in response to declining market prices, the Company will continue to reduce excess inventory and hold inventory at appropriate prices, while the inventory turnover period for bags has remained at no more than 30 days. - FY2022AdvancedAnnual 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.」
Stated that the inventory turnover period for bags has remained at no more than 30 days through early sales to China, where demand is strong, among other measures. The Company will continue to reduce excess inventory and hold inventory at appropriate prices. - FY2022-Q3AdvancedAnnual report
「Under these circumstances, 大黒屋 began selling products early in China, where demand was strong, from the second half of the year before last, when signs of rising brand-goods prices emerged, and expanded earnings. In particular, the inventory turnover period for bags has remained at no more than 30 days. Based on this experience, we will continue to reduce excess inventory while monitoring market conditions and secure inventory at appropriate prices.」
Stated that early sales to China expanded earnings and that the inventory turnover period for bags has remained at no more than 30 days. The Company will also continue to reduce excess inventory and secure inventory at appropriate prices. - FY2022-Q1AdvancedAnnual report
「Under these circumstances, 大黒屋 began selling products early in China, where demand was strong, from the second half of the previous year, when signs of rising brand-goods prices emerged, and expanded earnings. Based on this experience, we will continue to reduce excess inventory while monitoring market conditions and secure inventory at appropriate prices.」
Described the Company's record of expanding earnings by selling products early to China during a period of rising brand-goods prices, and stated its policy of continuing to reduce excess inventory and hold inventory at appropriate prices. - FY2021AdvancedAnnual report
「Brand-goods prices declined from February through May 2020 due to the impact of travel restrictions and requests to refrain from activities in various countries resulting from the COVID-19 pandemic. Under these circumstances, 大黒屋 began selling and reducing inventory early in January of that year, when signs of a decline in brand-goods prices emerged, and prevented an increase in losses from a deterioration in market conditions.」
Described the Company's record of preventing an increase in losses by selling inventory early and reducing inventory from January 2020, when signs of a decline in brand-goods prices emerged. - FY2021-Q3AdvancedAnnual report
「By focusing purchases and sales on products with high inventory turnover, net sales were ¥3,278 million, down ¥656 million year on year, or 16.7%, while third-quarter net sales were ¥3,356 million, down ¥510 million, or 13.2%, and are trending toward recovery.」
Purchases and sales were concentrated on products with high inventory turnover, and net sales in the second and third quarters recovered from the first quarter. - FY2021-Q2RestatedAnnual report
「Brand-goods prices declined from February through May 2020 due to the impact of travel restrictions and requests to refrain from activities in various countries resulting from the COVID-19 pandemic. Under these circumstances, 大黒屋 began selling and reducing inventory early in January of that year, when signs of a decline in brand-goods prices emerged, and prevented an increase in losses from a deterioration in market conditions. We will continue to reduce excess inventory while monitoring market conditions and secure inventory at appropriate prices.」
Reconfirmed the policy of continuing to reduce excess inventory and hold inventory at appropriate prices, stating that early inventory sales and reductions from January 2020 prevented losses from worsening market conditions from increasing. - FY2021-Q1AdvancedAnnual report
「Brand-goods prices declined from February through May 2020 due to the impact of travel restrictions and requests to refrain from activities in various countries resulting from the COVID-19 pandemic. Under these circumstances, 大黒屋 began selling inventory early and reducing inventory in January 2020, when signs of a decline in brand-goods prices emerged, thereby preventing an increase in losses from a deterioration in market conditions. We will continue to reduce excess inventory while monitoring market conditions and hold inventory at appropriate prices.」
In response to the decline in brand-goods prices, the Company began early sales and inventory reductions in January 2020, when signs of a decline emerged, and set out a policy of continuing to reduce excess inventory and hold inventory at appropriate prices. - FY2020-Q2RestatedAnnual report
「Because our group's business model is based on purchasing products from consumers in CtoB transactions and selling products to consumers in BtoC transactions, maximising net sales is not the top priority. Rather, through transactions spanning CtoBtoC, our objective is to maximise gross profit margin and inventory turnover and maximise marginal profit.」
Reconfirmed an operating policy that prioritises maximising gross profit margin, inventory turnover and marginal profit, rather than expanding sales through inventory build-up alone. - FY2020-Q1ReframedAnnual report
「Because our group's business model is based on purchasing products from consumers in CtoB transactions and selling products to consumers in BtoC transactions, maximising net sales is not the top priority. Rather, through transactions spanning CtoBtoC, our objective is to maximise gross profit margin and inventory turnover and maximise marginal profit.」
The focus was clarified as shifting from the previously described inventory build-up and sales expansion to an operating policy of maximising gross profit margin, inventory turnover and marginal profit across the CtoBtoC transaction chain. - FY2019AdvancedAnnual report
「Going forward, we will work to strengthen our product inventory and increase domestic sales as well. As part of these measures, we will accelerate new store openings in prime locations.」
The Company moved from inventory disposal and short-term adjustments to measures aimed at expanding sales through a well-stocked product inventory and stores in prime locations, and actually opened the Kawasaki store. - FY2019-Q3AdvancedAnnual report
「In the previous consolidated fiscal year, we carried out refinancing in Japan, secured funding to build up inventory, and saw net sales increase from the fourth quarter.」
In Japan, the increase in net sales continued, supported by funds secured through refinancing to build up inventory. Meanwhile, the gross profit margin declined as the proportion of purchases from headquarters increased. - FY2019-Q2AdvancedAnnual report
「In the previous consolidated fiscal year, we carried out refinancing in Japan and secured funding to build up inventory, resulting in rising net sales from the fourth quarter. Overseas, we refinanced existing borrowings, and plan to implement the following measures during the current consolidated fiscal year.」
In Japan, net sales increased after funding to build up inventory was secured through refinancing, and 大黒屋's net sales this quarter increased by ¥739 million year on year. Meanwhile, the higher proportion of purchases from headquarters due to the inventory build-up was a factor behind the decline in gross profit margin. - FY2019-Q1ReframedAnnual report
「大黒屋's net sales have continued to recover, partly due to the effect of building up inventory through the refinancing carried out in the previous consolidated fiscal year.」
The role of inventory measures changed from disposing of inventory in response to past yen appreciation and weaker demand to restoring sales through inventory build-up funded by refinancing. - FY2017RestatedAnnual 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.」
The annual report also confirmed a recovery in turnover after completion of the inventory processing, with turnover of 3.9 times assumed to continue next period. - FY2017-Q3AchievedAnnual report
「As the processing of the inventory has now been completed, the figures have been on a recovery trend since January, leading to the current result.」
Stated that the disposal of high-value inventory in response to yen appreciation and weaker demand had been completed, moving from the implementation stage to the completion stage of the short-term inventory adjustment. - FY2017-Q2AdvancedAnnual report
「However, owing to the recent sharp appreciation of the yen, we curbed market purchases, disposed of high-value inventory and promoted the revaluation of inventory in line with market prices. As a result, we believe that net sales and gross profit margin can be maintained from the second half onward.」
Regarding the short-term inventory adjustment policy presented in the previous quarter, stated that high-value inventory had been disposed of and inventory revalued in line with market prices. - FY2017-Q1First statedAnnual report
「We intend to make further inventory adjustments over a short period in preparation for further yen appreciation. Once the inventory adjustment is complete, we believe we will be able to maintain our previous gross profit margin and net sales.」
In response to yen appreciation and weaker demand in China, the Company initially specified measures to revalue inventory in line with market prices and adjust inventory, including high-value items, over a short period. The text also referred to an inventory turnover period of no more than 90 days and the maintenance of the previous gross profit margin and net sales.