Improvement in Gross Profit Margin and Operating Profit Margin
First written in FY2017. 15 of 33 entries say "Advanced", first in FY2018-Q1. Latest entry: 2026-10-09.
Tiemco moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026-H1Gross margin decline alongside a return to operating profitabilityAnnual report
「The gross profit margin declined slightly due to yen depreciation and the substantial increase in procurement costs. Operating profit, affected by higher selling, general and administrative expenses, including personnel expenses, was ¥2 million (an operating loss of ¥32 million in the same period of the previous year).」
The gross profit margin declined slightly due to yen depreciation and higher procurement costs, while operating income improved from a loss in the same period of the previous year to a profit of ¥2 million. - FY2025WorsenedAnnual report
「The gross profit margin, which the Company considers an important indicator for the fiscal year, declined 1.2 percentage points from the previous fiscal year to 45.1% due to higher procurement costs resulting from rising raw material prices and yen depreciation, as well as the disposal of slow-moving products. Meanwhile, the Company posted an operating loss of ¥98 million for the fiscal year, resulting in an operating margin of negative 3.1%.」
The gross profit margin declined from 46.3% to 45.1%, while the operating margin also deteriorated from negative 0.9% to negative 3.1%. Performance related to the margin improvement targets declined. - FY2025-H1WorsenedAnnual report
「The gross profit margin declined due to the impact of yen depreciation and the high proportion of autumn and winter apparel sold mainly at sale prices. As a result, the operating loss was ¥32 million (operating profit of ¥17 million in the same period of the previous year), and the ordinary loss was ¥28 million (ordinary profit of ¥20 million in the same period of the previous year).」
The gross profit margin declined due to yen depreciation and the product mix, which was weighted toward autumn and winter apparel sold mainly at sale prices. Operating profit consequently turned from ¥17 million in the same period of the previous year to a loss of ¥32 million. Performance related to the margin improvement targets deteriorated. - FY2024WorsenedAnnual report
「The gross profit margin, which the Company considers an important indicator for the fiscal year, declined 1.3 percentage points from the previous fiscal year to 46.3% due to the impact of higher procurement costs caused by yen depreciation and other factors. Meanwhile, the Company posted an operating loss of ¥30 million for the fiscal year, resulting in an operating margin of negative 0.9%.」
The gross profit margin declined from 47.6% in the previous fiscal year to 46.3%, while the operating margin also deteriorated from 3.4% to negative 0.9%. - FY2024-Q2WorsenedAnnual report
「Operating profit was ¥17 million, down 85.8% year on year, and ordinary profit was ¥20 million, down 83.5%, due to the decline in the gross profit margin resulting from higher procurement costs caused by yen depreciation and rising prices.」
The gross profit margin declined as procurement costs rose due to yen depreciation and rising prices, and operating profit fell 85.8% year on year. Earnings performance related to the margin improvement targets deteriorated. - FY2024-Q1WorsenedAnnual report
「Against this backdrop, we strengthened product sales and pursued other initiatives to secure earnings, but first-quarter revenue was ¥739 million, down 6.9% year on year. Operating loss was ¥38 million, compared with operating profit of ¥10 million in the same period of the previous year; ordinary loss was ¥37 million, compared with ordinary profit of ¥10 million; and net loss for the quarter was ¥43 million, compared with net profit for the quarter of ¥5 million.」
Performance for the quarter related to margin improvement deteriorated. Net sales declined, while operating profit, ordinary profit and net profit all turned from profits in the same period of the previous year to losses. - FY2023AdvancedAnnual report
「The gross profit margin for the fiscal year increased 1.7 percentage points from the previous fiscal year to 47.6%, mainly because there were fewer markdown sales of slow-moving products than in the previous fiscal year, particularly in the outdoor business, and because the exchange rate at the time of procurement was slightly more favourable to the yen than initially expected. Meanwhile, the operating margin was 3.4%, broadly in line with the previous fiscal year, due to higher selling, general and administrative expenses.」
The gross profit margin improved by 1.7 percentage points, from 45.9% to 47.6%. The operating margin was 3.4%, broadly unchanged from the previous fiscal year due to higher SG&A expenses. - FY2023-Q3AdvancedAnnual report
「Against this backdrop, we worked to secure earnings. Third-quarter revenue was ¥2,584 million, up 5.2% year on year; operating profit was ¥112 million, up 43.7%; ordinary profit was ¥114 million, up 33.7%; and net profit for the quarter was ¥106 million, up 39.0%.」
Net sales increased 5.2% year on year and operating profit increased 43.7%, indicating progress in earnings performance related to the gross profit margin and operating margin improvement targets. - FY2023-Q2AdvancedAnnual report
「Against this backdrop, we worked to secure earnings. Second-quarter revenue was ¥1,814 million, up 7.4% year on year; operating profit was ¥125 million, up 82.4%; ordinary profit was ¥124 million, up 64.9%; and net profit for the quarter was ¥98 million, up 44.9%.」
In addition to higher net sales, operating profit, ordinary profit and quarterly net profit all significantly exceeded the levels in the same period of the previous year, indicating progress in earnings performance related to the margin improvement targets. - FY2023-Q1AdvancedAnnual report
「Against this backdrop, we strengthened product sales and pursued other initiatives to secure earnings, resulting in first-quarter revenue of ¥794 million, up 5.4% year on year. Operating profit was ¥10 million, compared with an operating loss of ¥0 million in the same period of the previous year; ordinary profit was ¥10 million, up 337.1% year on year; and net profit for the quarter was ¥5 million, up 366.6%.」
Net sales increased 5.4% year on year, and operating profit turned from an operating loss in the same period of the previous year to a profit of ¥10 million. Progress was made in the performance indicators related to margin improvement. - FY2022AdvancedAnnual report
「The gross profit margin increased 1.3 percentage points from the previous fiscal year to 45.9%, mainly because there were fewer markdown sales of slow-moving products than in the previous fiscal year, particularly in the outdoor business. The operating margin improved from the previous fiscal year to 3.4% (operating margin in the previous fiscal year: negative 0.9%).」
The gross profit margin improved by 1.3 percentage points, from 44.6% to 45.9%, while the operating margin improved from negative 0.9% to 3.4%. - FY2022-Q3AdvancedAnnual report
「Against this backdrop, we worked to improve earnings, resulting in third-quarter revenue of ¥2,456 million, up 12.9% year on year; operating profit of ¥78 million, compared with an operating loss of ¥44 million in the same period of the previous year; ordinary profit of ¥85 million, compared with an ordinary loss of ¥33 million; and net profit for the quarter of ¥76 million, compared with a net loss for the quarter of ¥51 million.」
As a result related to margin improvement, operating profit, ordinary profit and quarterly net profit all turned from losses in the same period of the previous year to profits, while net sales increased 12.9% year on year. - FY2022-Q2AdvancedAnnual report
「Against this backdrop, we worked to secure earnings. Second-quarter revenue was ¥1,689 million, up 12.3% year on year; operating profit was ¥68 million, compared with an operating loss of ¥25 million in the same period of the previous year; ordinary profit was ¥75 million, compared with an ordinary loss of ¥17 million; and net profit for the quarter was ¥67 million, compared with a net loss for the quarter of ¥35 million.」
Among the performance indicators related to margin improvement, operating profit, ordinary profit and quarterly net profit all turned profitable from losses in the same period of the previous year, while net sales increased 12.3% year on year. - FY2022-Q1AdvancedAnnual report
「Against this backdrop, we strengthened product sales and pursued other initiatives to secure earnings, resulting in first-quarter revenue of ¥753 million, up 6.4% year on year. Operating loss was ¥0 million, compared with an operating loss of ¥60 million in the same period of the previous year; ordinary profit was ¥2 million, compared with an ordinary loss of ¥54 million; and net profit for the quarter was ¥1 million, compared with a net loss for the quarter of ¥54 million.」
The operating loss narrowed from ¥60 million in the same period of the previous year to zero, while ordinary profit and quarterly net profit turned positive. Earnings performance related to the gross profit margin and operating margin targets improved. - FY2021AdvancedAnnual report
「Gross profit margin, which the company considers an important indicator for the fiscal year, increased by 1.0 percentage point from the previous fiscal year to 44.6%, mainly because there were fewer discount sales of stagnant products in the outdoor business than in the previous fiscal year. Operating profit margin improved from the previous fiscal year but was negative 0.9% because the company recorded an operating loss, compared with negative 5.0% in the previous fiscal year.」
Gross profit margin improved by 1.0 percentage point from 43.6% to 44.6%, while operating profit margin improved from negative 5.0% to negative 0.9%. However, operating profit margin remains at a loss-making level. - FY2021-Q3AdvancedAnnual report
「Against this backdrop, we worked to improve earnings, resulting in third-quarter revenue of ¥2,176 million, up 18.6% year on year; operating loss of ¥44 million, compared with an operating loss of ¥128 million in the same period of the previous year; ordinary loss of ¥33 million, compared with an ordinary loss of ¥123 million; and net loss for the quarter of ¥51 million, compared with a net loss for the quarter of ¥164 million.」
As performance related to margin improvement, sales increased 18.6% year on year and the operating loss narrowed from ¥128 million to ¥44 million. However, the company did not achieve profitability. - FY2021-Q2AdvancedAnnual report
「Against this backdrop, we worked to secure earnings. Second-quarter revenue was ¥1,503 million, up 39.9% year on year; operating loss was ¥25 million, compared with an operating loss of ¥106 million in the same period of the previous year; and ordinary loss was ¥17 million, compared with an ordinary loss of ¥104 million.」
The operating loss narrowed from ¥106 million in the same period of the previous year to ¥25 million, indicating improvement in performance metrics related to the operating profit margin improvement target. However, operating profitability was not achieved in the quarter. - FY2021-Q1WorsenedAnnual report
「In addition to the decline in gross profit margin caused by discount sales of inventory for promotional purposes, operating expenses increased following the opening of new directly operated stores from the second quarter of the previous year. As a result, the operating loss was ¥60 million, compared with an operating loss of ¥51 million in the same period of the previous year, and the ordinary loss was ¥54 million, compared with an operating loss of ¥49 million.」
The decline in gross profit margin from discount sales and the increase in operating expenses caused the operating loss and ordinary loss related to the margin improvement targets to widen from the same period of the previous year. - FY2020WorsenedAnnual report
「Gross profit margin declined by 1.8 percentage points from the previous fiscal year to 43.6%, mainly due to discount sales of stagnant inventory and a decline in rental income from real estate. Operating profit margin was negative 5.0%, compared with negative 0.2% in the previous fiscal year, due to an operating loss resulting from lower sales and gross profit. The company will continue working to improve this indicator, with a focus on greater business efficiency and the concentration of management resources.」
Gross profit margin declined by 1.8 percentage points from the previous fiscal year to 43.6%, while operating profit margin declined from negative 0.2% to negative 5.0%. The policy of pursuing improvement remains unchanged. - FY2020-Q3WorsenedAnnual 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.」
Performance related to margin improvement deteriorated, and the operating loss expanded from ¥4 million in the same period of the previous year to ¥128 million despite the decline in selling, general and administrative expenses. - FY2020-Q2WorsenedAnnual report
「Although the company worked to reduce selling, general and administrative expenses, this was insufficient to offset the substantial declines in sales and gross profit. The operating loss was ¥106 million, compared with operating profit of ¥38 million in the same period of the previous year, and the ordinary loss was ¥104 million, compared with ordinary profit of ¥41 million.」
Profit performance related to the targets for improving gross profit margin and operating profit margin deteriorated, with operating profit of ¥38 million turning into an operating loss of ¥106 million and ordinary profit of ¥41 million turning into an ordinary loss of ¥104 million. - FY2020-Q1WorsenedAnnual report
「In line with the decline in gross profit, the company reported an operating loss of ¥51 million, compared with an operating loss of ¥5 million in the same period of the previous year; an ordinary loss of ¥49 million, compared with an ordinary loss of ¥3 million; and a quarterly net loss of ¥55 million, compared with a quarterly net loss of ¥14 million.」
The decline in gross profit expanded the operating loss from ¥5 million in the same period of the previous year to ¥51 million. Profit performance related to the targets for improving gross profit margin and operating profit margin deteriorated. - FY2019WorsenedAnnual report
「Gross profit margin declined by 0.2 percentage points from the previous fiscal year to 45.4%, mainly due to the disposal of stagnant inventory and a decline in rental income from real estate. Operating profit margin was negative 0.2%, compared with 1.4% in the previous fiscal year, due to an operating loss resulting from lower sales and gross profit.」
Gross profit margin declined by 0.2 percentage points to 45.4%, while operating profit margin declined from 1.4% to negative 0.2%. - FY2019-Q3Deterioration in progress toward target metricsAnnual report
「In line with the decline in gross profit, the company reported an operating loss of ¥4 million, compared with operating profit of ¥38 million in the same period of the previous year; an ordinary loss of ¥230,000, compared with ordinary profit of ¥430,000; and a quarterly net loss of ¥16 million, compared with quarterly net profit of ¥26 million.」
Regarding performance related to the targets for improving gross profit margin and operating profit margin, gross profit declined and operating profit turned from ¥38 million in the same period of the previous year to a loss of ¥4 million. - FY2018AdvancedAnnual report
「Gross profit margin improved by 0.5 percentage points from the previous year to 45.6% as a result of efforts to improve the earnings structure, and the company believes it is developing a business foundation capable of generating profit. Operating profit margin was 1.4% for the fiscal year.」
Gross profit margin improved by 0.5 percentage points from the previous year to 45.6%, while operating profit margin was 1.4%. The company quantified progress in improving its margins. - FY2018-Q3AdvancedAnnual report
「In addition, improved gross profit margin resulted in segment profit (operating profit) of ¥99 million, up 49.5% year on year.」
An improvement in gross profit margin was confirmed in the outdoor business, and segment profit increased 49.5% year on year. - FY2018-Q2AdvancedAnnual report
「As a result, sales in the outdoor business totaled ¥1,021 million, up 9.2% year on year. Improved gross profit margin resulted in segment profit (operating profit) of ¥91 million, up 86.5% year on year.」
An improvement in gross profit margin was confirmed in the outdoor business, and segment profit increased 86.5% year on year. - FY2018-Q1AdvancedAnnual report
「In addition, higher sales and an improved gross profit margin increased gross profit. Operating profit was ¥2 million, compared with an operating loss of ¥31 million in the same period of the previous year, and ordinary profit was ¥5 million, compared with an ordinary loss of ¥29 million.」
An improvement in gross profit margin was confirmed, and both operating profit and ordinary profit turned from losses in the same period of the previous year to profits. - FY2017First statedAnnual report
「The company is focusing on achieving higher levels particularly for gross profit margin, which has the greatest impact on overall profit, and operating profit margin, which indicates profit from the core business.」
The company explicitly identified gross profit margin and operating profit margin as management indicators and indicated a policy of targeting higher levels.