Risks from Difficulties in Securing Workers and Rising Logistics Costs

「The ratio of SG&A expenses to sales improved to 18.6%, down 0.4 percentage points year on year, as measures including logistics data analysis contained increases in freight and warehouse operating costs and tighter control of catalog production costs reduced advertising expenses.」

「Despite higher sales, we kept freight and warehouse handling charges at around the previous interim-period level. Advertising expenses also declined due in part to controls on catalog production costs, enabling us to keep selling, general and administrative expenses as a percentage of sales at 18.9%, down 0.5 percentage points.」

「Selling, general and administrative expenses were ¥19,721 million, up 4.8%. Factors behind the increase included higher freight and warehouse handling charges associated with sales growth, and higher personnel expenses due to wage increases and increased hiring,」

「Selling, general and administrative expenses were ¥9,449 million, up 6.8%. Factors behind the increase included a ¥275 million increase in advertising expenses, principally due to publication of a Chinese-language catalog for the first time in 4 years and the earlier-than-usual publication and advance recording of the general catalog, which is normally published and recorded in the third quarter, as well as higher freight and warehouse handling charges associated with sales growth and higher personnel expenses.」

「Selling, general and administrative expenses increased to ¥18,813 million, up 10.3%, due to higher real estate rentals and other costs following the opening of Hanshin DC, a new logistics facility established in anticipation of sales exceeding ¥100 billion, as well as higher personnel expenses from wage increases implemented as part of investment in human resources.」

「Selling, general and administrative expenses increased to ¥13,708 million, up 10.8%, due to higher real estate rentals and other costs following the opening of Hanshin DC, a new logistics facility established in anticipation of sales exceeding ¥100 billion, as well as higher personnel expenses from wage increases implemented as part of investment in human resources.」

「Selling, general and administrative expenses increased to ¥8.847 billion, up 9.7% year on year, due to higher property lease expenses and other costs associated with opening Hanshin DC, the new logistics hub established with a view to sales exceeding ¥100 billion. Other expenses remained somewhat controlled relative to plan, despite higher personnel expenses from wage increases implemented as part of investment in human resources, owing to reductions in delivery costs and other expenses.」

「Selling, general and administrative expenses increased to ¥4,372 million, up 11.7%, due to higher real estate rentals and other costs following the opening of Hanshin DC, a new logistics facility established in anticipation of sales exceeding ¥100 billion. Other expenses have generally remained under control relative to plan, despite higher personnel expenses from wage increases implemented as part of investment in human resources.」

「Selling, general and administrative expenses were ¥17,053 million, up 5.3%. Factors behind the increase included a 6.0% year-on-year, or ¥353 million, increase in personnel expenses due to higher staffing, base-pay increases, and inflation support payments, as well as higher freight costs in line with shipment volumes,」

「Selling, general and administrative expenses increased by ¥321 million year on year to ¥8,066 million, up 4.2%. Factors behind the increase included a ¥156 million increase in personnel expenses due to higher staffing and base-pay increases, higher freight costs in line with shipment volumes, increased travel and other activity-related expenses as sales activities involving travel became easier than during the fourth and fifth waves of COVID-19 the previous year, and higher system-related expenses.」

「Although freight costs continued to rise and personnel expenses increased due to wage increases implemented as part of investment in human resources, depreciation expenses declined as material-handling investments aged, and warehouse labor costs also began to decrease through operational improvements and other measures, contributing to the result.」

「Factors behind the increase included a ¥438 million increase in freight and warehouse handling charges due to higher logistics volumes resulting from increased sales and higher unit prices resulting from higher personnel costs and other factors, as well as a ¥186 million increase in personnel expenses due to higher staffing and other factors.」

「Selling, general and administrative expenses increased by ¥277 million year on year to ¥7,744 million, up 3.7%. Factors behind the increase included higher logistics volumes due to increased sales, a ¥338 million increase in freight and warehouse handling charges as unit prices continued to rise due to higher personnel costs and other factors, and a ¥123 million increase in personnel expenses due to higher staffing and other factors.」

「Factors behind the increase included a ¥212 million increase in freight and warehouse handling charges, as logistics volumes rose with higher sales and unit prices continued to rise due to higher personnel costs and other factors, as well as a ¥75 million increase in personnel expenses due to higher staffing and other factors.」

「Factors behind the increase included depreciation expense rising by ¥632 million and real estate rentals by ¥493 million following the May 2020 start-up of Smart DC, which involved approximately ¥4.5 billion in capital investment in logistics automation equipment and other facilities, as well as a ¥651 million increase in freight and warehouse handling charges due to higher sales and other factors.」

「Freight and warehouse handling charges continued to rise due to labor shortages and increased by ¥465 million, including the underlying increase resulting from higher sales. This was a factor behind the increase.」

「Freight and warehouse handling charges continued to rise due to labor shortages and increased by ¥269 million, including the underlying increase resulting from higher sales. This was a major factor.」

「The main factors included a ¥116 million increase in freight and warehouse handling charges, which continued to rise due to higher personnel costs and other factors.」

「Selling, general and administrative expenses increased by ¥343 million from the previous fiscal year to ¥13,398 million, up 2.6%. The main factor was an increase in freight and warehouse handling charges, including higher unit prices,」

「While freight, storage fees, and other costs increased, including due to higher unit prices, other costs declined as publication expenses fell, as shown in the quarterly catalog expense outlook on the following page. Overall, these costs were managed conservatively within plan.」

「The remaining increase was attributable to freight, storage fees, and other expenses linked to sales, and these costs were managed conservatively within plan.」

「Selling, general and administrative expenses increased by ¥150 million year on year to ¥3,172 million, up 5.0%. The main factor was a ¥125 million increase in catalog expenses due to the publication of a Chinese-language catalog, its first update in 2 years. The remaining increase was attributable to freight, storage fees, and other expenses linked to sales, and these costs were kept within plan.」

「Our group has also been affected to a significant extent in the form of higher logistics costs.」

「Selling, general and administrative expenses increased by ¥883 million, or 10.2%, year on year to ¥9,573 million. Factors contributing to the increase included the addition of Triumph 21's expenses from the current fiscal year, higher personnel expenses due to increased staffing, and the impact of higher freight and storage costs, among others.」

「Selling, general and administrative expenses increased by ¥499 million year on year to ¥6,123 million, up 8.9%. Factors behind the increase included the addition of Triumph 21's expenses from the current fiscal year, higher personnel expenses due to increased staffing, and increases resulting from higher freight and storage fees.」

「Factors contributing to the increase included the consolidation of the earnings of Triumph 21 Co., Ltd. (hereinafter “Triumph 21”) from the current fiscal year, higher personnel expenses due to increased staffing, and the impact of higher freight and storage costs, among others.」

「As a change in the social structure, the working-age population has turned negative as the population ages. In terms of the quality of labor, efficient working practices, symbolized by the phrase “work-style reform,” are also being encouraged. These changes are evident, for example, in the logistics industry in the form of higher delivery costs and other expenses resulting from difficulty securing personnel and efforts to improve working conditions.」