Turnaround of the Europe and North America Business and Improved Profitability

「Operating revenue from the Europe and North America business for the six months ended in the interim period was ¥25,025 million, up 17.9% year on year, and segment profit was ¥3,986 million, up 9.7%, resulting in higher revenue and profit. In Europe, sales at existing stores and online increased through rigorous inventory management based on sales trends. In North America, sales remained solid despite the impact of a severe cold wave, resulting in higher revenue and profit for the Europe and North America business. With the earnings base now established, the company resumed opening stores in North America during the current fiscal year and is preparing to open a flagship store in Paris in the fiscal year ending August 2027.」

「With our earnings base now established, we resumed store openings in North America during the fiscal year and are currently preparing to open a flagship store in Paris, scheduled for the fiscal year ending August 2027.」

「Operating revenue from the Europe and North America business was ¥42,133 million for the fiscal year, up 7.9% year on year, and segment profit was ¥6,922 million, up 25.7%. Although the number of stores declined year on year due to the closure of unprofitable stores, revenue at existing stores increased, resulting in higher revenue and profit.」

「Operating revenue from the Europe and North America business for the six months ended in the interim period was ¥21,228 million, up 5.7% year on year, and segment profit was ¥3,634 million, up 55.1%, resulting in higher revenue and profit, also reflecting foreign exchange effects. In North America, revenue and profit increased as sales, particularly of winter clothing, grew on the back of sufficient inventory. The closure of unprofitable stores in Canada also contributed to improved profit. In Europe, revenue and profit increased as the business restructuring carried out in the previous fiscal year progressed, including the elimination of unprofitable stores, and operations improved.」

「Operating revenue from the Europe and North America business was ¥39,043 million for the fiscal year, up 10.0% year on year, and segment profit was ¥5,506 million, up 494.1%, resulting in higher revenue and profit, helped by the weaker yen. In North America, sales increased as store operating capabilities and the management structure were strengthened, resulting in higher revenue and profit. In Europe, as part of the business restructuring, the consolidated subsidiary MUJI Europe Holdings Limited entered liquidation proceedings in April 2024, and store operations have continued under the new company MUJI Europe Limited.」

「④ Europe and North America Business Operating revenue from the Europe and North America business for the first nine months of the fiscal year was ¥29,476 million, up 12.7% year on year, and segment profit was ¥3,852 million, up 1,398.5%, resulting in higher revenue and profit. In North America, the company continued to improve store operating capabilities and strengthen its management structure, and sales continued to grow. In Europe, it strengthened its earnings base by closing unprofitable stores and taking other measures to focus its management resources.」

「At a meeting of the Board of Directors held on 8 April 2024, the company resolved, as part of the restructuring of its European business, to file for Administration for its UK consolidated subsidiary MUJI Europe Holdings Limited (MEH), one of the UK's corporate insolvency proceedings. MEH filed for Administration with the High Court of England and Wales on the same day local time.」

「④ Europe and North America Business Operating revenue from the Europe and North America business for the first quarter of the fiscal year was ¥10,187 million, up 14.5% year on year, and segment profit was ¥1,152 million, up 195.5%, resulting in higher revenue and profit. In North America, the company worked to improve store operating capabilities and strengthen its management structure. In Europe, it strengthened its earnings base by closing unprofitable stores and taking other measures to focus its management resources.」

「Operating revenue from the Europe and North America business was ¥35,482 million for the fiscal year, up 32.3% year on year, and segment profit was ¥3,834 million, compared with a segment loss of ¥856 million in the previous fiscal year. Revenue and profit both increased in North America and Europe, and the business achieved full-year profitability after reporting a loss in the previous fiscal year. In particular, performance in North America remained strong as store operating capabilities were strengthened.」

「Operating revenue from the Europe and North America business for the first nine months of the fiscal year was ¥26,152 million, up 37.0% year on year, and segment profit was ¥2,343 million, compared with a segment loss of ¥830 million in the same period of the previous year. Revenue and profit both increased in North America and Europe. In particular, performance in North America remained strong as store operating capabilities were strengthened.」

「Operating revenue from the Europe and North America business for the first six months of the fiscal year was ¥17,936 million, up 38.0% year on year, and segment profit was ¥1,820 million, compared with a segment loss of ¥73 million in the same period of the previous year. Revenue and profit both increased in North America and Europe. In particular, performance in North America remained strong as store operating capabilities were strengthened.」

「Operating revenue from the Europe and North America business for the first quarter of the fiscal year was ¥889.7 million, up 30.7% year on year, and segment profit was ¥802 million, up 148.2%. Revenue and profit both increased. In particular, North America got off to a strong start as operations improved steadily.」

「Operating revenue from the Europe and North America business for the first nine months of the fiscal year was ¥19,093 million, up 61.2% year on year, while the segment loss was ¥830 million, compared with a segment loss of ¥2,555 million in the same period of the previous year. Although there was some disruption to the supply chain, including product procurement and logistics, sales increased in both North America and Europe as economic activity resumed, and the operating loss narrowed.」

「Operating revenue from the Europe and North America business for the first six months of the fiscal year was ¥13,000 million, up 57.2% year on year, while the operating loss was ¥73 million, compared with an operating loss of ¥1,721 million in the same period of the previous year. Compared with the previous year, when performance was weak due to the spread of COVID-19, sales recovered in both North America and Europe as economic activity gradually resumed, substantially improving the operating loss.」

「Operating revenue from the Europe and North America business for the first quarter of the fiscal year was ¥680.7 million, up 50.4% year on year, and operating profit was ¥323 million, compared with an operating loss of ¥574 million in the same period of the previous year. Compared with the same quarter of the previous year, when performance was weak due to the spread of COVID-19, customer traffic gradually recovered during the first quarter as COVID-19 vaccinations progressed.」

「Thereafter, MUJI USA proceeded with the closure of unprofitable stores, which had been a bottleneck for its earnings, and negotiations to reduce rents, reaching agreement on the closure of 8 of its 18 stores, including 1 on the East Coast and 7 on the West Coast, as well as rent reductions for continuing stores. The company submitted a rehabilitation plan to the local court centered on improving earnings through these measures and a repayment plan for unsecured creditors, and in December 2020, the local court approved the plan with the support of its creditors. Repayment to unsecured creditors other than the company was completed in August 2021.」

「Both Europe and North America continued to face difficult conditions as the spread of COVID-19 prevented stores from operating normally, but in North America, signs of recovery in customer traffic and sales began to emerge as vaccinations progressed.」

「Both Europe and North America continued to face difficult conditions as the spread of COVID-19 prevented stores from operating normally.」

「Operating revenue from the Europe and North America business for the first quarter of the fiscal year was ¥452.6 million, up 10.0% year on year, while the segment loss was ¥574 million, compared with a loss of ¥1,991 million in the same period of the previous year. In North America, performance was sluggish due to the impact of travel restrictions and other measures related to the spread of COVID-19. In Europe, lockdowns were reintroduced in cities from November due to the spread of COVID-19, causing many stores to close and sales to fall significantly short of plan, although selling, general and administrative expenses were reduced through measures including rent relief in each country.」

「MUJI U.S.A. Limited (MUJI USA) resolved to pursue a swift and fundamental business rehabilitation under Chapter 11 of the U.S. Bankruptcy Code on 9 July 2020 local time, and filed for proceedings with the U.S. Bankruptcy Court for the District of Delaware on 10 July 2020 local time.」

「Operating revenue from the Europe and North America business was ¥658.5 million for the fiscal year, and the segment loss was ¥5,337 million.」

「Operating revenue from the Europe and North America business was ¥2,863 million for the fiscal year, up 16.9% year on year, while the segment loss was ¥312.2 million, an increase of ¥197.1 million from the previous year.」

「In the European and North American business, operating revenue during the third quarter of the fiscal year was ¥19,712 million, up 18.0%, and the segment loss was ¥2,748 million, compared with a loss of ¥815 million in the same period of the previous year. In Europe, apparel and miscellaneous goods performed well and sales increased following new store openings in new countries, but pre-opening costs increased. In North America, the company pursued improvements by controlling expenses, but its gross margin deteriorated due to higher inventory, and it failed to meet its sales plan.」

「In the European and North American business, operating revenue during the second quarter of the fiscal year was ¥12,496 million, up 19.2% year on year, and the segment loss was ¥1,858 million, compared with a loss of ¥609 million in the same period of the previous year. Sales in Europe, particularly of apparel and miscellaneous goods, remained strong, but new store opening costs increased. In North America, sales exceeded the previous year's level following the opening of new stores, but advertising and promotional expenses and logistics costs increased, resulting in a larger loss.」

「In the European and North American business, operating revenue during the first quarter of the fiscal year was ¥5,880 million, up 18.3% year on year, and the segment loss was ¥1,000 million, compared with a loss of ¥273 million in the same period of the previous year. In Europe, sales increased, mainly of apparel and miscellaneous goods, but expenses grew due in part to more active promotional activities. In the United States, difficult conditions continued as expenses associated with opening new stores were incurred ahead of the resulting revenue.」

「In the European and North American business, operating revenue for the fiscal year was ¥24,495 million, up 15.4% year on year, and the segment loss was ¥1,152 million, an increase of ¥253 million from the previous fiscal year. In Europe, sales, particularly of apparel and miscellaneous goods, remained strong. Sales increased mainly at existing stores in Germany. In France, selling, general and administrative expenses declined following the closure of unprofitable stores in the previous period. These sales increases and reductions in selling, general and administrative expenses enabled the European business to achieve segment profitability. In the United States, investment costs increased due to aggressive new store openings, and difficult conditions continued.」

「In the European and North American business, operating revenue during the third quarter of the fiscal year was ¥16,710 million, up 15.5%, and the segment loss was ¥815 million, compared with a loss of ¥1,249 million in the same period of the previous year. In Europe, sales of apparel and miscellaneous goods remained strong in addition to the consolidation of unprofitable stores in the previous period, sustaining the recovery trend. In North America, selling, general and administrative expenses increased because logistics improvement costs were incurred ahead of the resulting benefits and temporary costs from new store openings accumulated.」

「In the European and North American business, operating revenue during the second quarter of the fiscal year was ¥10,482 million, up 17.2% year on year, and the segment loss was ¥609 million, compared with a loss of ¥1,109 million in the same period of the previous year. In Europe, sales of apparel and miscellaneous goods, centered on the French Linen series, remained strong in addition to the consolidation of unprofitable stores in the previous period, sustaining the recovery trend. In the United States, selling, general and administrative expenses increased because costs associated with logistics improvements were incurred ahead of the resulting benefits.」

「In Europe, selling, general and administrative expenses were contained as a result of the warehouse relocation under the restructuring plan, reducing the segment loss. In the United States, recovery was delayed due in part to delays in the reopening of renovated stores.」

「In the European and North American business, operating revenue during the third quarter of the fiscal year was ¥14,470 million, up 19.2%, and the segment loss was ¥1,249 million, compared with a loss of ¥1,147 million in the same period of the previous year. The recovery trend continued as the temporary increase in costs from the warehouse relocation in Europe subsided and logistics costs declined. In North America, selling, general and administrative expenses increased as temporary costs from new store openings accumulated.」

「In Europe, where restructuring measures are underway, the company continued to recover after consolidating unprofitable stores in the previous period, with sales at existing stores exceeding the same period of the previous year during the second quarter of the fiscal year. In the United States, pre-opening costs increased due to the opening of 2 new stores, resulting in higher selling, general and administrative expenses.」

「In Europe, restructuring progressed smoothly, gradually curbing selling, general and administrative expenses and reducing the segment loss. In the United States, 2 new stores were opened during the first quarter of the fiscal year, and performance remained on track.」

「The business remained in the red due to temporary costs associated with store closures during renovations in European countries and the relocation of the European logistics hub. However, post-renovation performance at the No. 1 and No. 2 stores in each country has been strong, supporting expectations for the next fiscal year.」

「In Europe, where restructuring measures are underway, the company continued to consolidate unprofitable stores while renovating highly profitable stores to further expand their performance. Although results remained weak during the fiscal year, preparations were made for the next fiscal year.」

「In Europe, flagship and other existing stores in France, where a restructuring plan is underway, performed well, but overall results were difficult due in part to the closure of 3 unprofitable stores. In the United States, stronger sales of重点 products and enhanced PR activities made a significant contribution, increasing customer numbers and driving sales growth. Both the East and West Coast businesses have entered a strong trend.」