Impact on Business Performance from Changes in Consumer Preferences, Competition and Economic Conditions

「Although the economy was on a moderate recovery trend, uncertainty about the outlook continued due to rising prices and geopolitical risks, including those in the Middle East.」

「During the interim accounting period, the economy was on a moderate recovery trend, partly due to government measures to address higher prices. However, uncertainty about the outlook continued because of rising prices and geopolitical risks.」

「During the fiscal year, the Japanese economy was on a moderate recovery trend because of improvements in employment and income conditions. However, personal consumption remained weak against a backdrop of continued inflation, while the impact of U.S. tariff policy became a downside risk, and uncertainty about the economic outlook continued.」

「During the interim accounting period, the Japanese economy was on a moderate recovery trend because of improvements in employment and income conditions, but personal consumption remained sluggish against a backdrop of rising prices. In addition, uncertainty about the outlook continued because of factors including the impact of U.S. tariff policy.」

「During the fiscal year, the Japanese economy was on a moderate recovery trend because of improvements in employment and income conditions and increased inbound demand. However, against a backdrop of continued inflation caused by higher raw material and energy prices and the yen’s depreciation, consumer sentiment showed signs of stagnating improvement.」

「During the cumulative second quarter period, the Japanese economy was on a recovery trend as socioeconomic activity normalized, employment and income conditions improved, and inbound demand increased. However, uncertainty persisted because of worsening geopolitical risks, higher raw material and energy prices, exchange-rate fluctuations and declining real wages caused by inflation.」

「During the cumulative first quarter period (from 1 December 2023 to 29 February 2024), as the impact of COVID-19 receded further, mobility recovered in each region and the number of overseas travelers increased, leading to signs of a recovery in personal consumption. However, the outlook for the economy remained uncertain because of the continuing instability surrounding Ukraine, rising prices and the yen’s depreciation.」

「During the cumulative second quarter period (from 1 December 2022 to 31 May 2023), social and economic activity moved toward normalization following the COVID-19 pandemic, but the outlook for the economy remained uncertain because of the continuing instability surrounding Ukraine and rising prices.」

「During the cumulative first quarter period (from 1 December 2022 to 28 February 2023), progress was made in balancing COVID-19 containment with economic activity, but the outlook for the economy remained uncertain because of the continuing instability surrounding Ukraine and rising prices.」

「During the cumulative third quarter period, measures to prevent infection were implemented and signs of a return to normal economic activity emerged amid the prolonged impact of COVID-19. However, economic conditions remained uncertain because of the rapid depreciation of the yen and higher costs across industries due to surging crude oil prices.」

「During the cumulative second quarter period (from 1 December 2021 to 31 May 2022), the impact of COVID-19 eased and signs of an economic recovery emerged. However, conditions remained uncertain as lockdowns in China, production delays caused by semiconductor shortages and higher costs across industries due to surging crude oil prices continued.」

「During the cumulative first quarter period (from 1 December 2021 to 28 February 2022), uncertain conditions continued to weigh on the economy. In addition to production delays caused by semiconductor shortages and higher costs across industries due to surging crude oil prices, priority preventive measures were reintroduced amid a rapid spread of COVID-19 infections centered on the Omicron variant from the latter half of January.」

「During the fiscal year from 1 December 2020 to 30 November 2021, economic activity stagnated for an extended period because of priority preventive measures to prevent the spread of COVID-19 and repeated declarations of a state of emergency amid the resurgence of infections from the beginning of 2021.」

「During the cumulative third quarter period (from 1 December 2020 to 31 August 2021), economic activity stagnated for an extended period because of priority preventive measures to prevent the spread of COVID-19 and repeated declarations of a state of emergency amid the resurgence of infections.」

「During the cumulative second quarter period (from 1 December 2020 to 31 May 2021), the Japanese economy’s recovery trend seen since the latter half of the previous year stalled from the beginning of the year because of priority preventive measures to prevent the spread of COVID-19 and repeated declarations of a state of emergency.」

「During the cumulative first quarter period, the Japanese economy was pushed back from the recovery trend that had continued since the previous summer as a second state of emergency was declared in 11 prefectures and metropolitan areas from the beginning of the year amid the resurgence of COVID-19 infections.」

「Although the level of socioeconomic activity gradually began to rise thereafter and signs of a recovery were expected, the recovery from the impact of COVID-19 on domestic and overseas economies remained slow, and the outlook was expected to remain uncertain.」

「As a result, the Japanese economy suffered serious damage, and business sentiment deteriorated significantly in many industries. Although some sectors, including daily necessities for which demand increased, showed improvement in personal consumption, sales at department stores, shopping centers, large retail stores and restaurants that were subject to requests to suspend operations fell sharply.」

「Although some sectors, including daily necessities in short supply, showed improvement, personal consumption was severely affected by the warm winter, voluntary restrictions on going out and the sharp decline in inbound demand from visitors to Japan. Business sentiment in department stores, accommodation and food services, and apparel retail deteriorated significantly.」

「During the fiscal year from 1 December 2018 to 30 November 2019, the Japanese economy was weighed down, particularly in manufacturing, by the global economic slowdown centered on China and the decline in consumption following the consumption tax increase.」

「During the cumulative third quarter period, the Japanese economy was weighed down, particularly in manufacturing, as the impact of the escalating U.S.-China trade friction and slowing IT-related demand spread to small and medium-sized companies. Personal consumption was supported by special demand during the extended holiday period, but pre-tax-hike rush demand was sluggish, and sales of daily necessities and apparel lacked momentum.」

「During the cumulative second quarter period, the Japanese economy was weighed down, particularly in manufacturing, as the impact of slowing overseas economies, including China, and IT-related demand spread to small and medium-sized companies. Personal consumption was supported by special demand during the extended holiday period, while sales of daily necessities and apparel were stagnant in some areas.」

「During the cumulative first quarter period, the Japanese economy was weighed down by the spreading impact of the slowdown in the Chinese economy and IT-related industries, as well as labor shortages and the resulting surge in labor costs. Personal consumption was supported by services spending, aided by favorable employment conditions, but some areas, including apparel, remained stagnant and lacked strength.」

「The business environment surrounding the Company is expected to remain challenging amid uncertain economic trends and intensifying competition.」

「During the cumulative third quarter period, the Japanese economy saw a moderate recovery in demand, supported by resilient production activity at major companies and personal consumption. However, concerns including rising crude oil prices, higher labor costs caused by labor shortages and growing caution over protectionism weighed on business sentiment.」

「During the cumulative second quarter period, the Japanese economy saw a moderate recovery in demand, supported by resilient production activity at major companies and personal consumption. However, concerns including rising crude oil prices, higher labor costs caused by labor shortages and growing caution over protectionism weighed on business sentiment.」

「During the cumulative first quarter period, the Japanese economy saw a recovery in demand, supported by resilient production activity at major companies and personal consumption. However, concerns such as uncertainty over U.S. trade policy, the yen’s appreciation and rising labor costs caused by tight labor supply and demand weighed on business sentiment. Although consumption was recovering, conditions remained lacking in strength.」

「The business environment surrounding the Company is expected to remain challenging amid uncertain economic trends and intensifying competition.」

「During the cumulative third quarter period (from 1 December 2016 to 31 August 2017), the Japanese economy showed signs of a solid recovery, but concerns remained about growing uncertainty in emerging economies, including China, and delays in the implementation of economic policies in the United States. Uncertainty surrounding overseas political and economic conditions persisted, and conditions remained unstable.」

「The market environment was generally challenging in the outdoor-related industries relevant to our business, as consumption declined in both the fishing tackle and outdoor apparel markets.」

「Changes in customers’ diversifying preferences, competition with other companies and economic trends may affect the Company’s results.」