Pressure on operating profit due to increased sales promotion expenses and other costs
First written in FY2017-Q2. 9 of 22 entries say "Worsened", first in FY2019-Q1. Latest entry: 2026-10-09.
Tiemco moved to the "Worse" side of this theme in 2025.
2 other companies' latest entry also says "Worsened".
- 2026-10-09WorsenedRevision of earnings forecasts
「In addition to increases in personnel expenses and other costs, the increase in selling, general and administrative expenses resulting from holding the extraordinary general meeting of shareholders on 25 August and the recording of expenses related to responding to the tender offer proposal as extraordinary losses also contributed to the quarterly net loss.」
Increases in selling, general and administrative expenses, including personnel expenses and costs associated with holding the extraordinary general meeting of shareholders, were cited as factors behind the quarterly net loss. - FY2026-H1Operating profit turned positive despite higher SG&A expensesAnnual report
「In addition, due to higher selling, general and administrative expenses, including personnel expenses, operating profit was ¥2 million, compared with an operating loss of ¥32 million in the same period of the previous year, and ordinary profit was ¥9 million, compared with an ordinary loss of ¥28 million.」
Although SG&A expenses, including personnel expenses, increased, operating profit and ordinary profit both turned from losses in the same period of the previous year to profits. Cost pressure and improved performance coexisted. - FY2025WorsenedAnnual report
「In addition to lower gross profit, personnel expenses and costs related to overseas expansion and strengthening the e-commerce business increased, among other factors, causing selling, general and administrative expenses to increase by ¥32 million from the previous fiscal year. As a result, the Company recorded an operating loss of ¥98 million for the fiscal year, compared with an operating loss of ¥30 million in the previous fiscal year.」
In addition to personnel expenses, costs associated with overseas expansion and strengthening e-commerce increased, raising SG&A expenses by ¥32 million and widening operating loss from ¥30 million to ¥98 million. - FY2024WorsenedAnnual report
「In addition to lower gross profit, personnel expenses, freight and packing costs, depreciation and other costs increased, causing selling, general and administrative expenses to increase by ¥13 million from the previous fiscal year. As a result, the Company recorded an operating loss of ¥30 million for the fiscal year, compared with operating profit of ¥116 million in the previous fiscal year.」
Higher personnel expenses, freight and packing costs, depreciation and other expenses increased SG&A expenses by ¥13 million, and operating profit turned from ¥116 million in the previous year to a loss of ¥30 million. - FY2023Operating profit increased despite higher SG&A expensesAnnual report
「Although revenue and gross profit increased and improved from the previous fiscal year, personnel expenses, utilities and repairs increased, among other factors, causing selling, general and administrative expenses to increase by ¥106 million from the previous fiscal year. Operating profit for the fiscal year was therefore ¥116 million, up 2.7% year on year.」
Although SG&A expenses increased by ¥106 million, higher revenue and gross profit resulted in a 2.7% year-on-year increase in operating profit. - FY2023-Q2Operating profit expanded despite higher SG&A expensesAnnual report
「Selling, general and administrative expenses 696,172 742,920 Operating profit 68,830 125,574」
Selling, general and administrative expenses increased from ¥696 million in the previous year to ¥743 million, while operating profit increased from ¥69 million to ¥126 million. Operating profit expanded despite higher SG&A expenses. - FY2022Operating profit turned positive despite higher SG&A expensesAnnual report
「Although revenue and gross profit increased and improved from the previous fiscal year, efforts to improve profitability resulted in selling, general and administrative expenses increasing by ¥50 million from the previous fiscal year to ¥1,397 million. Operating profit for the fiscal year was therefore ¥113 million, compared with an operating loss of ¥26 million in the previous fiscal year.」
Although selling, general and administrative expenses increased by ¥50 million, higher revenue and gross profit drove a turnaround from operating loss to operating profit. - FY2021RestatedAnnual report
「Although revenue and gross profit increased and improved from the previous fiscal year, they were insufficient to cover selling, general and administrative expenses. Operating loss for the fiscal year was ¥26 million, compared with an operating loss of ¥134 million in the previous fiscal year.」
Even after revenue and gross profit improved, they were insufficient to absorb selling, general and administrative expenses, leaving an operating loss and continued profit pressure from the cost burden. - FY2021-Q3RestatedAnnual report
「In addition to implementing markdown sales to offset weak customer traffic, increased operating expenses associated with the growth in directly operated stores and other factors, as well as a change in the method of allocating segment expenses, resulted in a segment loss of ¥69 million, compared with a segment loss of ¥68 million in the same period of the previous year.」
Discount sales in response to sluggish customer traffic and higher operating expenses associated with the increase in directly operated stores continue to be described as sources of profit pressure. - FY2021-Q2WorsenedAnnual report
「In addition to implementing markdown sales to offset weak customer traffic, increased operating expenses associated with the growth in directly operated stores and other factors resulted in a segment loss of ¥43 million, compared with a segment loss of ¥39 million in the same period of the previous year.」
Discount sales and higher operating expenses associated with the increase in directly operated stores continued to pressure profit, and the outdoor business segment loss widened by ¥4 million from the previous year. - FY2021-Q1WorsenedAnnual report
「In addition to the decline in the gross profit margin caused by discount sales of inventory to promote sales, operating loss was ¥60 million, compared with an operating loss of ¥51 million in the same period of the previous year, due in part to higher operating expenses from the opening of new directly operated stores since the second quarter of the previous year.」
Higher operating expenses from new directly operated stores were identified as a new source of profit pressure and, together with the decline in the gross profit margin from discount sales, contributed to the widening operating loss. - FY2020ReframedAnnual report
「In addition to expense reductions, selling, general and administrative expenses declined because of curtailed activities during the COVID-19 pandemic. However, the substantial declines in revenue and gross profit had a significant impact. Operating loss was ¥134 million, compared with an operating loss of ¥4 million in the same period of the previous year, and ordinary loss was ¥127 million, compared with ordinary profit of ¥1 million in the previous year.」
The explanation changed from higher selling, general and administrative expenses associated with previous efforts to strengthen sales to lower expenses due to expense reductions and curtailed activities. However, the substantial declines in revenue and gross profit caused operating loss to widen from ¥4 million to ¥134 million. - FY2020-Q3MitigatedAnnual report
「In addition to expense reductions, selling, general and administrative expenses declined because of curtailed activities during the COVID-19 pandemic. However, the substantial declines in revenue and gross profit had a significant impact. Operating loss was ¥128 million, compared with an operating loss of ¥4 million in the same period of the previous year, and ordinary loss was ¥123 million, compared with an ordinary loss of ¥0.23 million.」
Selling, general and administrative expenses declined as a result of expense reductions and curtailed activities, but could not offset the substantial declines in revenue and gross profit. Operating loss widened from ¥4 million in the previous year to ¥128 million. - FY2020-Q2MitigatedAnnual report
「Although the Company worked to reduce selling, general and administrative expenses, this did not offset the substantial declines in revenue and gross profit. Operating loss was ¥106 million, compared with operating profit of ¥38 million in the same period of the previous year.」
Efforts to reduce selling, general and administrative expenses were explicitly described. Selling, general and administrative expenses decreased from ¥678 million in the previous year to ¥602 million, but this was insufficient to offset the substantial declines in revenue and gross profit. - FY2019WorsenedAnnual report
「In addition, due in part to higher selling, general and administrative expenses, segment profit (operating profit) was ¥134 million, down 8.8% year on year.」
Higher selling, general and administrative expenses pressured profit in the outdoor business, and segment profit fell 8.8% year on year. - FY2019-Q3WorsenedAnnual report
「In addition, due in part to higher selling, general and administrative expenses, segment profit (operating profit) was ¥80 million, down 18.3% year on year.」
Higher selling, general and administrative expenses pressured profit in the outdoor business, and segment profit fell 18.3% year on year. - FY2019-Q2WorsenedAnnual report
「In addition, increased expenses, including personnel expenses and advertising expenses, as a result of initiatives to strengthen sales capabilities contributed to operating profit of ¥38 million (down 37.5% year on year), ordinary profit of ¥41 million (down 35.8%) and quarterly net income of ¥26 million (down 42.5%).」
Higher personnel, advertising and other expenses associated with strengthening sales capabilities pressured profit, and operating profit fell 37.5% year on year. - FY2019-Q1WorsenedAnnual report
「As a result, revenue from the outdoor business was ¥509 million, down 2.9% year on year. In addition, due in part to higher selling, general and administrative expenses, segment profit (operating profit) was ¥48 million, down 20.4% year on year.」
Higher selling, general and administrative expenses pressured profit in the outdoor business, and segment profit fell 20.4% year on year. - FY2018MitigatedAnnual report
「Along with increases in revenue and gross profit, efforts to reduce expenses resulted in operating profit of ¥43 million for the fiscal year, compared with an operating loss of ¥19 million in the previous year, and an operating margin of 1.4%.」
Operating profit turned from a loss in the previous year to a profit of ¥43 million as a result of expense reductions, easing the pressure on profit from selling expenses and other costs. - FY2017RestatedAnnual report
「In addition, gross profit increased as a result of higher revenue and an improved gross profit margin, while selling, general and administrative expenses, including personnel expenses and rent, increased by ¥39 million due to proactive measures to strengthen sales. Operating loss was ¥19 million.」
Selling, general and administrative expenses, including personnel expenses and rent, increased by ¥39 million in connection with proactive measures to strengthen sales, and pressure on operating profit continued. - FY2017-Q3RestatedAnnual report
「In addition, gross profit increased as a result of higher revenue and an improved gross profit margin, while selling, general and administrative expenses increased due to proactive sales activities undertaken in anticipation of future demand. Operating loss was ¥6 million, compared with an operating loss of ¥22 million in the same period of the previous year; ordinary loss was ¥4 million, compared with an ordinary loss of ¥16 million; and quarterly net loss was ¥2 million, compared with a quarterly net loss of ¥18 million.」
The Company explains that selling, general and administrative expenses increased due to proactive sales activities undertaken in anticipation of future demand. Because the loss was smaller than in the same period of the previous year, this was classified as a continuation rather than a new deterioration in profit pressure. - FY2017-Q2First statedAnnual report
「In addition, selling, general and administrative expenses, including promotional expenses aimed at strengthening sales, increased. Operating profit was ¥8 million, down 31.1% year on year, and ordinary profit was ¥9 million, down 45.8%.」
The increase in promotional expenses and other costs aimed at strengthening sales was identified separately for the first time as a factor behind the decreases in operating profit and ordinary profit.