Profit pressure from discount sales and fixed store costs
First written in FY2016-Q2. 14 of 30 entries say "Worsened", first in FY2016-Q3. Latest entry: 2026-10-09.
Tiemco moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 5 of 9 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Meanwhile, the operating loss was ¥98 million (operating loss of ¥30 million in the same period of the previous year), reflecting the decline in the gross profit margin due to higher procurement costs and the disposal of slow-moving products, as well as the increase in SG&A expenses, including personnel costs. The ordinary loss was ¥85 million (ordinary loss of ¥24 million in the same period of the previous year).」
Higher procurement costs, the disposal of slow-moving products and increased SG&A expenses, including personnel costs, combined to widen the operating loss from ¥30 million to ¥98 million. - FY2025-H1WorsenedAnnual report
「In addition, the gross profit margin declined due to the weaker yen and the high sales proportion of fall and winter clothing sold primarily at discount prices.」
In addition to the weaker yen, the high sales proportion of fall and winter clothing sold primarily at discount prices caused the gross profit margin to decline, intensifying pressure on earnings. - FY2024WorsenedAnnual report
「The decline in gross profit margin due to higher procurement costs and increased selling, general and administrative expenses, including personnel expenses, resulted in an operating loss of ¥30 million, compared with operating profit of ¥116 million in the same period of the previous year. Ordinary loss was ¥24 million, compared with ordinary profit of ¥118 million in the same period of the previous year.」
The decline in the gross profit margin caused by higher procurement costs coincided with an increase in SG&A expenses, including personnel costs, causing operating income and ordinary income to turn from profits in the previous year into losses. - FY2024-Q1WorsenedAnnual report
「In addition to lower sales, markdown sales of slow-moving products and other factors resulted in segment profit (operating profit) of ¥9 million, down 77.9% year on year.」
In the outdoor business, markdown sales of slow-moving products pressured profit in addition to the decline in sales, and segment profit fell 77.9% year on year. Profit pressure, which had eased through the decline in markdown sales of slow-moving products up to the previous period, has intensified again. - FY2023MitigatedAnnual report
「Gross profit margin improved, partly because there were fewer markdown sales of slow-moving products than in the previous period and the exchange rate at the time of purchase was slightly more favorable for the yen than initially assumed.」
Fewer markdown sales of slow-moving products than in the previous period improved gross profit margin, easing profit pressure from markdown sales. - FY2023-Q2MitigatedAnnual report
「Segment profit (operating profit) was ¥117 million, up 85.5% year on year, partly because there were fewer markdown sales of slow-moving products.」
The lower level of markdown sales of slow-moving products than in the same period of the previous year contributed to the increase in profit, easing profit pressure from markdown sales. - FY2023-Q1MitigatedAnnual report
「Segment profit was ¥42 million, up 40.5% year on year, partly because there were fewer markdown sales of slow-moving products.」
Fewer markdown sales of slow-moving products also contributed to the 40.5% year-on-year increase in outdoor business segment profit, easing profit pressure from markdown sales. - FY2022MitigatedAnnual report
「In the outdoor business, net sales substantially exceeded the previous period, and gross profit margin also improved, partly because there were fewer markdown sales of slow-moving products than in the previous period.」
Fewer markdown sales of slow-moving products in the outdoor business than in the previous period improved gross profit margin, easing profit pressure from markdown sales. - FY2022-Q1MitigatedAnnual report
「The proportion of low-price sales declined as product inventory was optimized, resulting in segment profit of ¥12 million, up 62.3% year on year.」
Optimizing product inventory reduced the proportion of low-price sales, and fishing business segment profit increased 62.3% year on year. This indicates that profit pressure from markdown sales eased. - FY2021MitigatedAnnual 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 ¥24 million, compared with a segment loss of ¥36 million in the same period of the previous year.」
Although profit pressure from markdown sales and higher operating expenses for directly operated stores continued, the outdoor business segment loss narrowed from ¥36 million in the same period of the previous year to ¥24 million. - 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.」
In the outdoor business, markdown sales were used to address weak customer traffic, while higher operating expenses associated with the increase in directly operated stores and other factors also pressured profit. The segment loss increased from ¥68 million in the same period of the previous year to ¥69 million. - 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.」
Markdown sales and higher operating expenses for directly operated stores expanded the outdoor business segment loss from ¥39 million in the same period of the previous year to ¥43 million. - FY2021-Q1WorsenedAnnual report
「In addition to the decline in gross profit margin caused by markdown sales of inventory to promote sales, increased operating expenses following the opening of new directly operated stores since the second quarter of the previous year and other factors resulted in an operating loss of ¥60 million, compared with an operating loss of ¥51 million in the same period of the previous year.」
The decline in gross profit margin caused by markdown sales of inventory coincided with higher operating expenses for new directly operated stores, expanding the operating loss from the same period of the previous year. - FY2020WorsenedAnnual report
「In the fiscal year, outdoor business net sales declined, and the active use of markdown sales to clear slow-moving inventory and other factors also caused gross profit to fall substantially.」
Active markdown sales of slow-moving inventory in the outdoor business became a major factor behind the substantial decline in gross profit. - FY2020-Q2WorsenedAnnual report
「The company’s online store recorded a 44.1% year-on-year increase in sales due to early markdowns (discount sales) and other measures, but this was insufficient to offset the decline in sales. As a result, outdoor business net sales in the second quarter were ¥650 million, down 35.9% year on year. In line with the decline in gross profit, the segment loss (operating loss) was ¥39 million, compared with segment profit (operating profit) of ¥84 million in the same period of the previous year.」
Although markdown sales at the company’s online store increased sales, overall outdoor business net sales fell 35.9% year on year, and the business moved from segment profit of ¥84 million to a loss of ¥39 million. - FY2019WorsenedAnnual report
「In the fishing business, gross profit declined due to lower sales and the impact of primarily clearing slow-moving inventory.」
The clearance of slow-moving inventory emerged as a factor behind the decline in gross profit, and profit pressure from markdowns and inventory clearance intensified again. - FY2018MitigatedAnnual report
「In the fishing business, the company launched new products while actively clearing inventory. At the same time, strong sales in the outdoor business reduced markdowns, and higher sales increased gross profit.」
Strong outdoor business sales reduced markdown sales and increased gross profit, easing profit pressure from markdown sales. - FY2018-Q3RestatedAnnual report
「Although gross profit margin declined due to markdown sales and other factors, efforts to reduce expenses resulted in segment profit (operating profit) of ¥110 million, up 13.4% year on year.」
In the fishing business, profit pressure from the decline in gross profit margin caused by markdown sales continued, while segment profit increased. - FY2018-Q2RestatedAnnual report
「Although gross profit margin declined due to markdown sales and other factors, efforts to reduce expenses resulted in segment profit (operating profit) of ¥86 million, up 15.8% year on year.」
In the fishing business, profit pressure from the decline in gross profit margin caused by markdown sales continued, while segment profit increased due to expense reductions. - FY2018-Q1WorsenedAnnual report
「Gross profit declined due to an increase in markdown sales and other factors, resulting in a segment loss (operating loss) of ¥3 million, compared with operating profit of ¥3 million in the same period of the previous year.」
In addition to the outdoor business, increased markdown sales and other factors in the fishing business also reduced gross profit and contributed to the operating loss. - FY2017MitigatedAnnual report
「Segment profit (operating profit) was ¥106 million, up 17.5% year on year, due to an improvement in gross profit margin.」
Gross profit margin improved in the outdoor business, and segment profit increased 17.5% year on year, continuing to ease profit pressure from markdowns and other factors. - FY2017-Q3MitigatedAnnual report
「Segment profit (operating profit) was ¥66 million, up 56.4% year on year, due to an improvement in gross profit margin.」
Gross profit margin improved in the outdoor business, and segment profit increased 56.4% year on year, continuing to ease profit pressure from markdown sales and other factors. - FY2017-Q2MitigatedAnnual report
「Segment profit (operating profit) was ¥48 million, up 47.7% year on year, due to an improvement in gross profit margin.」
Gross profit margin improved in the outdoor business, and segment profit increased 47.7% year on year, easing profit pressure. - FY2017-Q1MitigatedAnnual report
「As a result, outdoor business net sales were ¥429 million, down 6.2% year on year. However, segment profit (operating profit) was ¥20 million, up 86.5% year on year, partly because the discount rate on sale items was lower than in the same period of the previous year.」
The discount rate on sale items declined from the same period of the previous year, and outdoor business segment profit increased 86.5% year on year, partly easing the profit pressure from markdown sales. - FY2016WorsenedAnnual report
「In addition to the decline in gross profit margin caused by sales and other measures to clear inventory, increased advertising and promotional expenses to strengthen clothing sales and higher taxes and dues due to an increase in the business tax rate led to an operating loss of ¥20 million, compared with operating profit of ¥23 million in the same period of the previous year.」
In addition to conventional markdown sales, higher advertising expenses and increased taxes and dues, the decline in gross profit margin caused by inventory-clearance sales led to a shift from operating profit to an operating loss. - FY2016-Q3WorsenedAnnual report
「The company implemented early markdowns (discount sales) to address the mild winter, and segment profit (operating profit) was ¥42 million, down 25.5% year on year, affected by increased advertising and promotional expenses and other factors.」
In addition to conventional markdown sales, increased advertising and promotional expenses were identified as factors exerting pressure on profit, and outdoor business segment profit fell 25.5% year on year. - FY2016-Q2First statedAnnual report
「Segment profit (operating profit) was ¥33 million, down 19.9% year on year, affected by markdown sales of winter clothing, increased store fixed costs and other factors.」
In the outdoor business, markdown sales and increased store fixed costs were identified as factors behind the decline in segment profit.