Higher Costs and Lower Operating Profit from Upfront Investment in Advertising and Showrooms
First written in FY2017-Q2. 2 of 27 entries say "Restated". Latest entry: 2026-10-09.
The whole theme swung hardest in 2021: 5 of 16 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- 2026-10-09MitigatedEarnings
「販売費及び一般管理費 2,144,165 1,928,837 営業利益 1,073,058 1,946,273」
販売費及び一般管理費が減少し、営業利益が前年同期比81.4％増となった。 - FY2026Operating profit declined due to lower sales and inventory disposal losses, among other factorsAnnual report
「Revenue was ¥17,036 million, down 8.0% year on year and ¥1,482 million, while operating profit was ¥2,232 million, down 29.1% and ¥918 million, respectively, following the recognition of inventory disposal losses as the company normalized inventory levels.」
Operating profit declined 29.1% due to lower revenue, elevated procurement costs and the recognition of inventory disposal losses. - FY2026-H1Operating profit declined due to lower sales and inventory disposal losses, among other factorsAnnual report
「For the six months ended in the current interim period, revenue was ¥8,283 million, down 3.9% year on year, while operating profit was ¥1,073 million, down 19.3%.」
Revenue declined 3.9% year on year and operating profit declined 19.3%. The company also reported a lower gross profit margin due to inventory disposal losses incurred as it normalized inventory levels. - FY2025Operating profit declined due to lower revenue and higher procurement costsAnnual report
「Operating profit was ¥3,150 million, down 20.0% year on year, due to lower revenue as well as the impact of higher procurement costs resulting from rising resource prices and the yen's depreciation, among other factors.」
SG&A expenses declined slightly year on year, but lower revenue and higher procurement costs resulting from rising resource prices and the yen's depreciation caused operating profit to decline 20.0%. - FY2025-H1Operating income declined despite higher selling, general and administrative expensesAnnual report
「SG&A expenses ¥2,030.240 million ¥2,096.582 million Operating profit ¥2,357.240 million ¥1,330.488 million」
SG&A expenses increased from ¥2,030 million in the same period of the previous year to ¥2,096 million, while operating profit declined from ¥2,357 million to ¥1,330 million. - FY2024Operating income declined despite higher selling, general and administrative expensesAnnual report
「Selling and administrative expenses increased by ¥342 million from the previous fiscal year due to investment in advertising and personnel, as well as higher taxes and dues resulting from the recognition of foreign exchange valuation gains. As a result, consolidated operating profit was ¥3,939 million, down 16.2% year on year.」
Investment in advertising and personnel, together with higher taxes and dues, increased SG&A expenses by ¥342 million, resulting in a 16.2% decline in operating profit. - FY2024-Q3Higher operating profit despite increased SG&A expensesAnnual report
「SG&A expenses ¥2,906.194 million ¥3,049.198 million Operating profit ¥3,266.341 million ¥3,380.400 million」
SG&A expenses increased from ¥2,906.194 million in the same period of the previous year to ¥3,049.198 million, while operating profit increased from ¥3,266.341 million to ¥3,380.400 million. - FY2024-Q2Operating profit continued to increase as SG&A expenses roseAnnual report
「For the six months ended in the second quarter, revenue was ¥10,504 million, up 9.3% year on year, while operating profit was ¥2,357 million, up 13.4%.」
SG&A expenses increased from ¥1,951 million in the same period of the previous year to ¥2,030 million, while operating profit increased 13.4% year on year. - FY2024-Q1Higher operating profit despite increased SG&A expensesAnnual report
「SG&A expenses ¥990.016 million ¥1,053.687 million Operating profit ¥903.639 million ¥1,192.174 million」
SG&A expenses increased from ¥990.016 million in the same period of the previous year to ¥1,053.687 million, while operating profit increased from ¥903.639 million to ¥1,192.174 million. - FY2023Operating profit continued to increase as SG&A expenses roseAnnual report
「Selling and administrative expenses also increased by ¥87 million from the previous fiscal year, but the increase in expenses was absorbed by revenue growth, resulting in consolidated operating profit of ¥4,701 million, up 22.8% year on year.」
Selling and administrative expenses increased by ¥87 million, while revenue growth drove operating profit to ¥4,701 million, up 22.8% year on year. - FY2023-Q3Higher operating profit despite increased SG&A expensesAnnual report
「SG&A expenses ¥2,753.817 million ¥2,906.194 million Operating profit ¥2,989.763 million ¥3,266.341 million」
SG&A expenses increased from ¥2,753.817 million in the same period of the previous year to ¥2,906.194 million, while operating profit rose 9.3% year on year to ¥3,266 million. - FY2023-Q2Revenue and operating profit increased year on yearAnnual report
「Revenue was ¥9,612 million, up 10.7% year on year, while operating profit was ¥2,079 million, up 11.4%.」
In the six months ended in the second quarter, revenue increased 10.7% year on year and operating profit increased 11.4%, reversing the previous trend of declining operating profit. - FY2023-Q1Slightly higher revenue, lower operating profitAnnual report
「For the first quarter of the current fiscal year, revenue was ¥4,564 million, up 0.5% year on year, while operating profit was ¥903 million, down 10.4%.」
Revenue increased 0.5% year on year, while operating profit declined 10.4%. Gross profit also fell below the same period of the previous year due to higher cost of sales. - FY2022Operating profit declined due to higher procurement costs as SG&A expenses decreasedAnnual report
「In the fiscal year, SG&A expenses decreased by ¥41 million, partly as a result of a review of expenses. However, the gross profit margin declined from the previous fiscal year due to factors including higher ocean freight rates and procurement costs. As a result, consolidated operating profit was ¥3,827 million, down 6.3% year on year.」
SG&A expenses decreased by ¥41 million following a review of expenses, while higher ocean freight rates and procurement costs reduced the gross profit margin, resulting in a 6.3% decline in operating profit. - FY2022-Q3Operating profit continued to decline as SG&A expenses decreasedAnnual report
「SG&A expenses ¥2,873.288 million ¥2,753.817 million Operating profit ¥3,094.427 million ¥2,989.763 million」
SG&A expenses decreased from ¥2,873.288 million in the same period of the previous year to ¥2,753.817 million, while operating profit declined from ¥3,094.427 million to ¥2,989.763 million. - FY2022-Q2Operating profit continued to decline as SG&A expenses decreasedAnnual report
「SG&A expenses ¥1,977.520 million ¥1,908.684 million Operating profit ¥2,043.122 million ¥1,866.449 million」
SG&A expenses decreased from ¥1,977.520 million in the same period of the previous year to ¥1,908.684 million, while operating profit declined from ¥2,043.122 million to ¥1,866.449 million. - FY2022-Q1Operating income declined despite lower selling, general and administrative expensesAnnual report
「SG&A expenses ¥1,012.978 million ¥974.061 million Operating profit ¥1,085.639 million ¥1,008.831 million」
SG&A expenses decreased from ¥1,012.978 million in the same period of the previous year to ¥974.061 million, while operating profit declined from ¥1,085.639 million to ¥1,008.831 million. - FY2021-Q3Operating profit continued to decline as SG&A expenses decreasedAnnual report
「SG&A expenses ¥3,306.032 million ¥2,873.288 million Operating profit ¥3,962.648 million ¥3,094.427 million」
SG&A expenses decreased from ¥3,306.032 million in the same period of the previous year to ¥2,873.288 million, while operating profit declined from ¥3,962.648 million to ¥3,094.427 million. - FY2021-Q2Operating profit declined amid the COVID-19 pandemic, while SG&A expenses decreasedAnnual report
「SG&A expenses ※ ¥2,242.480 million ※ ¥1,977.520 million Operating profit ¥2,535.964 million ¥2,043.122 million」
SG&A expenses decreased from ¥2,242.480 million in the same period of the previous year to ¥1,977.520 million, while operating profit declined from ¥2,535.964 million to ¥2,043.122 million. - FY2020Full-year operating profit increased as SG&A expenses declinedAnnual report
「Within SG&A expenses, the company continued investing in advertising, primarily television commercials, while further improving operating efficiency through the use of systems.」
SG&A expenses were reduced by ¥100 million through measures including the continued investment in advertising and the use of systems, while operating profit increased 7.7% year on year to ¥5,253 million. - FY2020-Q3Operating profit growth continued as SG&A expenses declinedAnnual report
「Selling, general and administrative expenses 3,410,632 3,306,032 Operating profit 3,534,634 3,962,648」
SG&A expenses decreased from ¥3,410.632 million in the same period of the previous year to ¥3,306.032 million, while operating profit increased from ¥3,534.634 million to ¥3,962.648 million. - FY2020-Q2Operating profit increased as SG&A expenses declinedAnnual report
「For the cumulative second quarter of the current consolidated fiscal year, net sales were ¥10,489 million, up 6.0% year on year, and operating profit was ¥2,535 million, up 11.2%.」
Selling, general and administrative expenses decreased from ¥2,288.448 million in the same period of the previous year to ¥2,242.480 million, while operating profit increased 11.2% year on year. - FY2019SG&A expenses and operating profit declined despite continued advertising investmentAnnual report
「While the company continued to invest actively in advertising, primarily television commercials, and further improved operational efficiency through the use of IT, selling, general and administrative expenses decreased by ¥90 million. However, consolidated operating profit fell 12.7% year on year to ¥4,879 million, partly due to the impact of a higher cost ratio resulting from a weaker yen settlement rate than in the previous consolidated fiscal year.」
While selling, general and administrative expenses decreased by ¥90 million through the use of IT and other measures despite continued advertising investment, operating profit declined 12.7% year on year partly due to a higher cost ratio resulting from the weaker yen. - FY2018Operating profit increased despite higher expensesAnnual report
「Depreciation and amortization increased for the new Nagoya showroom, completed in June 2017, and software, while taxes and dues, including real estate acquisition tax related to the acquisition of land for a new showroom and office, also increased. As a result, selling, general and administrative expenses increased by ¥127 million, and consolidated operating profit increased 1.2% year on year to ¥5,591 million.」
Selling, general and administrative expenses increased due to depreciation and amortization of showrooms and software, as well as real estate acquisition-related costs, but operating profit increased 1.2% year on year. - FY2017RestatedAnnual report
「Operating profit was ¥5,523 million, down 10.0% year on year, due to higher costs associated with upfront investments, including the expansion of television programs sponsored by the company and active upfront investments in showrooms and other facilities.」
The company also cited higher costs from upfront investments in advertising and showrooms as a factor behind the decline in operating profit for the full fiscal year. - FY2017-Q3RestatedAnnual report
「In terms of profit, operating profit was ¥4,018 million, down 11.1% year on year, due to higher costs associated with upfront investments, including advertising and promotional expenses for television commercials and other media and showroom renovations, as well as an increase in enterprise-size taxation associated with the recognition of gains on the valuation of derivatives.」
The company continued to cite higher costs associated with upfront investments in television commercials and showroom renovations as a factor behind the decline in operating profit. Operating profit was ¥4,018 million, down 11.1% year on year. - FY2017-Q2First statedAnnual report
「In terms of profit, operating profit was ¥2,590 million, down 11.3% year on year, partly due to higher costs associated with upfront investments, including advertising and promotional expenses for television commercials and other media, and showroom renovation costs.」
Higher costs associated with upfront investments in television commercials and showroom renovations were cited as one factor behind operating profit of ¥2,590 million, down 11.3% year on year, for the cumulative second quarter.