Improving Profitability by Revising the Advertising Strategy and Distributing Catalogs Efficiently
First written in FY2024. 9 of 10 entries say "Advanced", first in FY2025-H1. Latest entry: 2026-08-12.
The whole theme swung hardest in 2019: 2 of 20 companies on the "Worse" side.
12 other companies' latest entry also says "Advanced".
- 2026-08-12AdvancedResults presentation
「In the first quarter, improvements in advertising efficiency and the cost ratio through structural reform produced higher profit and a record-high profit.」
The company attributed higher profit and record-high quarterly profit to improvements in advertising efficiency and the cost ratio. - FY2026AdvancedAnnual report
「These initiatives improved the media-cost ratio and increased profitability during the fiscal year.」
The document showed actual improvements in the media cost ratio and profitability resulting from more selective catalog mailing and changes to distribution criteria, which improved advertising efficiency. - FY2026-H1AdvancedAnnual report
「Although advertising efficiency, which had deteriorated since autumn 2023, has been improving, profits declined because sales efficiency for fashion products, which faced difficulties in dealing with the extreme heat, deteriorated and costs were incurred to open new stores, among other factors.」
The document reported progress in improving advertising efficiency, which had deteriorated since autumn 2023. Meanwhile, deteriorating sales efficiency for fashion products and the costs of opening new stores were factors behind the decline in profit. - FY2025AdvancedAnnual report
「In response to this situation, from the middle of the current consolidated fiscal year we discontinued sending catalogs to customers whose purchase probability was below a certain threshold. In addition, of the two catalogs, “Fashion” and “Health and Lifestyle,” we changed the distribution criteria so that customers with purchase histories from only one of the catalogs during a specified period would receive only the catalog corresponding to that purchase history.」
As measures to improve advertising efficiency and profitability, the Group discontinued mailings to customers with low purchase probabilities and changed catalog distribution to reflect customers’ purchase histories. - FY2025-H1AdvancedAnnual report
「Another key initiative for the current fiscal year, improving advertising efficiency, is also progressing steadily. In particular, the media cost ratio, which indicates catalog costs as a percentage of sales, has been improving at a pace slightly ahead of the earnings forecast announced in May 2024.」
The document reported specific progress in advertising efficiency, with the media cost ratio improving at a pace slightly faster than forecast in the earnings outlook announced in May 2024. However, it had not yet recovered to the level of the same period of the previous year. - FY2024First statedAnnual report
「To address the decline in profitability in the fiscal year ended March 2024, we will seek to improve profitability by reviewing our advertising strategy and establishing efficient methods of catalog distribution.」
As measures to address deteriorating advertising efficiency and the decline in the sales conversion rate relative to the number of catalogs distributed, the Group has set out a review of its advertising strategy and distribution methods.