Enhancing Sustainable and Steady Earnings Power through Business Transformation

「To address this situation, we will optimize the allocation of management resources through a review of our business portfolio and work to improve profitability and strengthen our earnings base. We will also use digital technology and promote DX (digital transformation) to improve operational efficiency and customer experience value, further strengthening initiatives to create value.」

「The transfer of fixed assets owned by the Company is intended to improve asset efficiency and strengthen its financial position through the effective use of management resources.」

「Within the Samantha Thavasa Group, we began fundamental structural reforms, including improving the efficiency of stores and brands, and worked on the concrete implementation of the plan.」

「Within the Samantha Thavasa Group, we worked to restore performance by further improving management efficiency, capturing inbound demand, improving the EC business and developing collaborations with popular characters.」

「With regard to business-structure reform at the subsidiary, the integration of management will enable faster and more efficient decision-making. We will promptly implement comprehensive and fundamental structural reforms, including improving the efficiency of STJ's headquarters operations through the use of our resources, and achieve an improvement in earnings capacity as quickly as possible.」

「The company will transfer fixed assets owned by Samantha Thavasa Japan Limited to make effective use of management resources.」

「We will also continue to review the group's overall business portfolio and work to allocate management resources appropriately and improve earnings capacity.」

「We accelerated the review of the business portfolio set out in the medium-term management plan, promoted the renewal of our store network and shifted human capital, while working to improve management efficiency by raising average customer spending and controlling SG&A expenses.」

「Operating loss was ¥3,255 million, compared with an operating loss of ¥7,825 million in the same period of the previous year, as the company consolidated Samantha Thavasa Japan Limited's operating loss of ¥2,021 million despite controlling SG&A expenses.」

「We will conduct a further review of our cost structure, make effective use of surplus space in stores and reposition store locations. We will also realize synergies with Samantha Thavasa Japan Limited not only through joint product development but also through cost reductions.」

「Selling, general and administrative expenses decreased by ¥2,948 million from the previous consolidated fiscal year to ¥29,643 million. This was mainly due to restrictions on domestic and overseas business travel and other movements as measures against COVID-19, the promotion of web meetings, more efficient advertising and sales promotion through social media, and lower store expenses resulting from store closures.」

「Selling, general and administrative expenses decreased by ¥2,027 million from the previous consolidated fiscal year to ¥32,592 million. This was mainly due to more efficient advertising and sales promotion through the use of social media and lower store expenses resulting from store closures.」

「The group is undertaking thorough business transformation with the goal of achieving compliance-based management and sustainable, steady improvement in earnings capacity. While improving employees' working environment, we will increase operational efficiency and make use of our store network, rapidly reforming our organization and creating an environment in which store employees can focus on serving customers, thereby improving earnings capacity.」