Improving profitability and strengthening organizational management
First written in FY2016. 13 of 39 entries say "Advanced", first in FY2017-Q2. Latest entry: 2026-08-05.
House Of Rose moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
18 other companies' latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「First quarter of the fiscal year ending March 2027 2,538 △1.3 △300 – △299 – △226 –」
In the first quarter, revenue decreased 1.3% year on year, while the operating loss widened from ¥259 million in the prior-year period to ¥300 million. - FY2026SoftenedAnnual report
「The operating margin for the current fiscal year is 0.6%, and we will work to sustainably enhance corporate value with a target operating margin of 3.1% for the fiscal year ending March 2028, the final year of the medium-term management plan.」
The operating margin target was lowered from the previous 5.0% to 3.1%, with the fiscal year ending March 2028 set as the deadline. The actual margin is 0.6%. - FY2026-H1Widening consolidated operating loss in the interim periodAnnual report
「Consolidated net sales for the six-month interim period were ¥5,653 million, down 1.0% year on year. On the expense side, in addition to higher personnel costs resulting from wage increases, initial costs related to the acquisition of the MAMA BUTTER brand were recorded as a front-loaded investment to establish a foundation for growth. As a result, the operating loss widened to ¥116 million, compared with an operating loss of ¥59 million in the same period of the previous year, and the interim net loss widened to ¥98 million, compared with an interim net loss of ¥80 million.」
Consolidated net sales declined 1.0% year on year, while the operating loss widened from ¥59 million to ¥116 million due to higher personnel costs resulting from wage increases and initial costs related to the acquisition of MAMA BUTTER. - FY2025Decline in actual operating marginAnnual report
「The operating margin for the current period is 1.1%, and the Company will work to sustainably increase corporate value with a target operating margin of 5.0%.」
The actual operating margin declined from 3.1% in the previous fiscal year to 1.1%, while the 5.0% target was maintained. - FY2025-H1First-half operating loss and decline in sales and earningsAnnual report
「Thus, net sales for the six-month interim period were ¥5,708 million, down 2.5% year on year. The Company recorded an operating loss of ¥60 million, compared with operating income of ¥25 million in the same period of the previous year, an ordinary loss of ¥56 million, compared with ordinary income of ¥29 million, and an interim net loss of ¥81 million, compared with an interim net loss of ¥27 million.」
In the first half, net sales declined 2.5% year on year, and operating income and ordinary income turned into losses. The interim net loss also widened. Performance has deteriorated relative to the policy of improving profitability. - FY2024AdvancedAnnual report
「The operating margin for the current fiscal year is 3.1%, and we will work to sustainably enhance corporate value with a target operating margin of 5.0%.」
The actual operating margin increased from 1.3% in the previous fiscal year to 3.1%. The 5.0% target remains unchanged. - FY2024-Q3AdvancedAnnual report
「Thus, net sales for the first 9 months were ¥9,071 million, up 0.6% year on year, operating income was ¥246 million, up 79.6%, ordinary income was ¥252 million, up 48.4%, and quarterly net income was ¥105 million, up 71.1%.」
Net sales increased in the first 9 months, and operating income, ordinary income and quarterly net income all exceeded the levels recorded in the same period of the previous year. Measurable progress in improving profitability is evident. - FY2024-Q1Widening operating loss in the first quarterAnnual report
「Thus, net sales for the first quarter were ¥2,722 million, down 3.6% year on year. The Company recorded an operating loss of ¥122 million, compared with an operating loss of ¥56 million in the same period of the previous year, an ordinary loss of ¥119 million, compared with an ordinary loss of ¥52 million, and a quarterly net loss of ¥108 million, compared with a quarterly net loss of ¥56 million.」
Consolidated net sales declined 3.6% year on year, while the operating loss widened from ¥56 million to ¥122 million, the ordinary loss from ¥52 million to ¥119 million, and the quarterly net loss from ¥56 million to ¥108 million. - FY2023Decline in actual operating marginAnnual report
「The operating margin for the current fiscal year is 1.3%, and we will work to sustainably enhance corporate value with a target operating margin of 5.0%.」
The 5.0% operating margin target was maintained, while the actual margin declined from 2.3% in the previous fiscal year to 1.3%. - FY2023-Q3Higher revenue but lower operating incomeAnnual report
「Thus, consolidated net sales for the first 9 months of the fiscal year were ¥9,019 million, up 7.5% year on year. On the expense side, in addition to the higher cost of sales ratio resulting from increased procurement costs, operating expenses increased due to higher property-related costs, including tenant rents, and some costs related to the planned relocation of the Company's distribution center at the end of the fiscal year were recorded. As a result, operating income was ¥137 million, down 32.7% year on year, and quarterly net income was ¥61 million, down 40.2%.」
For the first 9 months, net sales increased 7.5% year on year, while operating income declined 32.7% and quarterly net income declined 40.2% due to higher procurement costs, property-related expenses and distribution center relocation costs. - FY2023-Q2AdvancedAnnual report
「As a result, consolidated net sales for the cumulative second quarter were ¥5,870 million, up 10.3% year on year. On the expense side, selling, general and administrative expenses increased owing to higher product procurement costs and the fact that staff personnel expenses and tenant fees during store closures, which had been recorded as extraordinary losses in the year-earlier period as temporary measures accompanying the state of emergency, were recorded as ordinary operating expenses in the current period. Nevertheless, higher sales enabled the Company to achieve operating profit of ¥10 million, compared with an operating loss of ¥9 million in the year-earlier period. Quarterly net loss was ¥9 million, compared with a quarterly net loss of ¥48 million.」
Consolidated net sales increased 10.3% year on year, and operating profit moved from an operating loss in the year-earlier period to a profit of ¥10 million. Quarterly net loss also narrowed from ¥48 million to ¥9 million. - FY2023-Q1AdvancedAnnual report
「For the cumulative first quarter, net sales were ¥2,823 million, up 12.4% year on year, operating loss was ¥56 million, compared with an operating loss of ¥104 million in the year-earlier period, ordinary loss was ¥52 million, compared with an ordinary loss of ¥104 million, and quarterly net loss was ¥56 million, compared with a quarterly net loss of ¥120 million.」
Sales increased, and operating loss, ordinary loss and quarterly net loss all narrowed from the year-earlier period. However, the consolidated company as a whole continued to post an operating loss and net loss. - FY2022AdvancedAnnual report
「The operating margin for the current period is 2.3%, and the Company will work to sustainably increase corporate value with a target operating margin of 5.0%.」
The operating margin increased from 1.1% in the previous fiscal year to 2.3%, and operating profit increased 127.6% year on year. However, the 5.0% target has not been achieved. - FY2022-Q3AdvancedAnnual report
「As a result, for the cumulative third quarter, net sales were ¥8,388 million, up 5.2% year on year, operating profit was ¥204 million, up 77.3%, and quarterly net profit was ¥103 million, compared with a quarterly net loss of ¥26 million in the year-earlier period.」
For the cumulative third quarter, sales and profit increased, with operating profit up 77.3% year on year and quarterly net profit moving from a loss in the year-earlier period to a profit. - FY2022-Q2Reduction in first-half operating and net lossesAnnual report
「As a result, for the cumulative second quarter, net sales were ¥5,323 million, up 7.6% year on year, operating loss was ¥9 million, compared with an operating loss of ¥44 million in the year-earlier period, and quarterly net loss was ¥48 million, compared with a quarterly net loss of ¥120 million.」
In the first half, sales increased, and operating loss narrowed from ¥44 million to ¥9 million while quarterly net loss narrowed from ¥120 million to ¥48 million, but losses continued. - FY2022-Q1First-quarter sales growth, but losses continuedAnnual report
「As a result, first-quarter net sales were ¥2,511 million, up 20.5% year on year. Although the Company worked to reduce expenses comprehensively, operating loss was ¥104 million, compared with an operating loss of ¥103 million in the year-earlier period, leaving the loss roughly at the same level, partly because extraordinary losses for staff personnel expenses and store rent during the closure period declined substantially from the year-earlier period. Quarterly net loss was ¥120 million, compared with a net loss of ¥277 million in the year-earlier period, as extraordinary losses declined substantially.」
In the first quarter, net sales increased 20.5% year on year, but operating loss was ¥104 million, roughly unchanged from the year-earlier period, and the challenge of improving profitability continued. Net loss narrowed from the year-earlier period owing to lower extraordinary losses. - FY2021Full-year lower sales and profit and net lossAnnual report
「As a result, net sales for the fiscal year were ¥10,681 million, down 15.8% year on year, operating profit was ¥115 million, down 42.5%, and ordinary profit was ¥150 million, down 23.4%. Employment adjustment subsidies and other COVID-related benefits of ¥211 million were recorded as non-operating income and extraordinary income, while ¥264 million in store-closure-related expenses was recorded as an extraordinary loss, resulting in a net loss of ¥67 million for the fiscal year, compared with net profit of ¥31 million in the previous fiscal year.」
For the full year, net sales, operating profit and ordinary profit declined, and the Company moved from net profit in the previous fiscal year to a net loss in the current fiscal year. - FY2021SoftenedAnnual report
「The operating margin for the current period is 1.1%, and the Company will work to sustainably increase corporate value with a target operating margin of 5.0%.」
The 5.0% operating margin target was maintained, but the previously stated deadline of the fiscal year ending March 2022 was removed, weakening the time frame. - FY2021-Q3Operating profit secured for the cumulative third quarter, but lower sales and profit and a net lossAnnual report
「For the cumulative third quarter, net sales were ¥7,973 million, down 19.3% year on year, as the overall business was affected by the COVID-19 pandemic despite growth in mail-order sales. On the expense side, the Company recorded as an extraordinary loss the fixed portions of cost of sales, property expenses and personnel expenses related to store closures during the pandemic. As a result of negotiating lower rents and reducing expenses throughout the Company, operating profit was ¥115 million, down 61.8% year on year, and ordinary profit was ¥142 million, down 53.7%. In addition, the recognition of the above extraordinary loss and extraordinary income, including employment adjustment subsidies, resulted in a quarterly net loss of ¥26 million, compared with quarterly net profit of ¥166 million in the year-earlier period.」
Although operating profit was secured for the cumulative third quarter, net sales, operating profit and ordinary profit all fell below the year-earlier levels, resulting in a quarterly net loss. The Company also reported negotiations to reduce rents and company-wide expense reductions. - FY2021-Q2First-half consolidated operating loss and net lossAnnual report
「For the cumulative second quarter, net sales were heavily affected by the COVID-19 pandemic and amounted to ¥4,948 million, down 27.0% year on year. On the expense side, although the Company worked comprehensively to reduce costs, including negotiating lower rents through its sales operations, it guaranteed employees' full salaries during the suspension period. As a result, operating loss was ¥44 million, compared with operating profit of ¥315 million in the year-earlier period, after ¥264 million in fixed costs for cost of sales, property expenses and personnel expenses related to store closures was recorded as an extraordinary loss.」
For the cumulative second quarter, net sales fell 27.0% year on year and the Company moved from operating profit to operating loss. The Company reported a deterioration in consolidated performance in the first half relative to its policy of improving profitability. - FY2021-Q1First-quarter consolidated operating loss and net lossAnnual report
「As a result, consolidated net sales for the cumulative first quarter were ¥2,084 million, down 37.9% year on year, operating loss was ¥103 million, compared with operating profit of ¥95 million in the year-earlier period, ordinary loss was ¥99 million, compared with ordinary profit of ¥97 million, and quarterly net loss was ¥277 million, compared with quarterly net profit of ¥48 million.」
Affected by the COVID-19 pandemic, first-quarter net sales fell 37.9% year on year, and operating profit, ordinary profit and net profit all moved into the red. - FY2020Full-year deterioration in profitabilityAnnual report
「As a result, net sales for the fiscal year were ¥12,683 million, down 9.0% year on year, operating profit was ¥200 million, down 72.0%, ordinary profit was ¥196 million, down 72.5%, and net profit was ¥31 million, down 91.4%.」
For the full year, net sales, operating profit, ordinary profit and net profit all fell below the year-earlier levels, making the deterioration relative to the policy of improving profitability clear. - FY2020-Q3Deterioration in profitability for the cumulative third quarterAnnual report
「For the cumulative third quarter, net sales were ¥9,884 million, down 7.1% year on year. Although rent and personnel expenses declined as the number of stores fell, operating profit declined to ¥301 million, down 53.3%, owing to lower sales, a higher cost of sales ratio, and the recognition of expenses related to the consumption tax increase. Ordinary profit was ¥307 million, down 52.3%, and quarterly net profit was ¥166 million, down 58.8%.」
For the cumulative third quarter, net sales, operating profit, ordinary profit and quarterly net profit all fell below the year-earlier levels, with deterioration in profitability continuing from the first half. - FY2020-Q2First-half deterioration in profitabilityAnnual report
「For the cumulative second quarter, net sales were ¥6,781 million, down 5.1% year on year, operating profit was ¥315 million, down 30.7%, ordinary profit was ¥319 million, down 29.5%, and quarterly net profit was ¥192 million, down 33.2%.」
For the cumulative second quarter, net sales, operating profit, ordinary profit and quarterly net profit all fell below the year-earlier levels, indicating deterioration relative to the policy of improving profitability. - FY2020-Q1First-quarter deterioration in profitabilityAnnual report
「As a result, consolidated net sales for the first quarter were ¥3,358 million, down 7.4% year on year, operating profit was ¥95 million, down 47.2%, ordinary profit was ¥97 million, down 45.3%, and quarterly net profit was ¥48 million, down 56.5%.」
Despite the policy of improving profitability, net sales, operating profit, ordinary profit and quarterly net profit all fell below the year-earlier levels in the first quarter. - FY2019SoftenedAnnual report
「The operating margin for the current period is 5.1%, while the current medium-term management plan sets a target operating margin of 5.0% for the fiscal year ending March 2022, its final year.」
The operating margin target changed from 5.2% for the fiscal year ending March 2019 to 5.0% for the fiscal year ending March 2022, with the target reduced and the deadline deferred. - FY2019-Q3AdvancedAnnual report
「Selling, general and administrative expenses declined from the year-earlier period owing to lower rent resulting from the reduction in the number of stores and savings in personnel expenses resulting from the reduction in store staff. As a result, profit increased in all segments, with operating profit of ¥645 million, up 37.1% year on year, ordinary profit of ¥644 million, up 43.5%, and quarterly net profit of ¥404 million, up 49.9%.」
Profit increased in all segments against a backdrop of cost reductions resulting from fewer stores and staff, with operating profit up 37.1%, ordinary profit up 43.5%, and quarterly net profit up 49.9%. - FY2019-Q2AdvancedAnnual report
「Selling, general and administrative expenses declined from the year-earlier period owing to lower rent resulting from the reduction in the number of stores and savings in personnel expenses resulting from the reduction in store staff. As a result, profit increased in all segments, with operating profit of ¥454 million, up 44.0% year on year, ordinary profit of ¥453 million, up 47.4%, and quarterly net profit of ¥288 million, up 54.8%, securing higher revenue and profit.」
Profit increased in all segments against a backdrop of cost reductions resulting from fewer stores and staff, with operating profit up 44.0%, ordinary profit up 47.4%, and quarterly net profit up 54.8%. - FY2019-Q1AdvancedAnnual report
「As a result, consolidated net sales for the first quarter were ¥3,626 million, up 5.0% year on year, operating profit was ¥181 million, up 129.9%, ordinary profit was ¥179 million, up 132.7%, and quarterly net profit was ¥112 million, up 173.6%.」
In the first quarter, net sales, operating profit, ordinary profit and quarterly net profit all exceeded the year-earlier levels, indicating measurable progress in improving profitability. - FY2018-Q3AdvancedAnnual report
「As a result, for the cumulative third quarter, net sales were ¥10,553 million, up 1.8% year on year. On the cost side, the cost of sales ratio increased as wholesale sales grew, but total expenses declined from the year-earlier period. Operating profit was therefore ¥470 million, up 29.1% year on year, ordinary profit was ¥449 million, up 26.4%, and quarterly net profit was ¥269 million, up 19.6%.」
Operating profit, ordinary profit and quarterly net profit exceeded the year-earlier levels against a backdrop of lower total expenses, indicating measurable progress in improving profitability. - FY2018-Q2AdvancedAnnual report
「As a result, for the cumulative second quarter, net sales were ¥7,071 million, up 3.3% year on year, operating profit was ¥315 million, up 45.7%, ordinary profit was ¥307 million, up 49.1%, and quarterly net profit was ¥186 million, up 36.3%.」
For the cumulative second quarter, net sales, operating profit, ordinary profit and quarterly net profit all exceeded the year-earlier levels, indicating measurable progress in improving profitability. - FY2018-Q1AdvancedAnnual report
「As a result, consolidated net sales for the first quarter were ¥3,455 million, up 1.2% year on year. On the cost side, higher sales in the wholesale business and an increase in service-business staff exerted upward pressure, but the effects of restraining other expenses resulted in operating profit of ¥78 million, up 82.2% year on year, ordinary profit of ¥76 million, up 102.5%, and quarterly net profit of ¥40 million, up 20.1%.」
Operating profit, ordinary profit and quarterly net profit increased year on year, owing in part to savings in other expenses, indicating concrete progress in improving profitability. - FY2017Clarification of numerical targets in the medium-term planAnnual report
「The operating margin for the current period is 3.0%, while the current medium-term management plan sets a target operating margin of 5.2% for the fiscal year ending March 2019, its final year.」
The Company has stated its previous policy of improving profitability as the numerical target of a 5.2% operating margin in the medium-term management plan for the fiscal year ending March 2019. - FY2017-Q3RestatedAnnual report
「On the cost side, although the increase in service-business staff was an upward pressure, the cost of sales ratio fell 0.1 percentage points year on year, partly because of the withdrawal from unprofitable businesses. Savings in other expenses also contributed, resulting in a 2.6% year-on-year decrease in total expenses. As a result, operating profit was ¥364 million, down 3.0% year on year, ordinary profit was ¥355 million, down 5.1%, and quarterly net profit was ¥225 million, up 11.7%.」
Although the Company has continued withdrawing from unprofitable businesses and reducing other expenses, operating profit and ordinary profit fell below the year-earlier levels, indicating mixed progress in improving profitability. - FY2017-Q2AdvancedAnnual report
「On the cost side, the cost of sales ratio fell 0.3 percentage points year on year, owing to higher sales at the core House of Rose directly operated stores and the withdrawal from unprofitable businesses with high cost-of-sales ratios. Personnel expenses declined as the number of staff fell in line with the reduction in directly operated stores, while savings in other expenses also contributed, resulting in a 2.0% year-on-year decrease in total expenses. As a result, operating profit was ¥216 million, up 96.0% year on year, ordinary profit was ¥206 million, up 80.3%, and quarterly net profit was ¥136 million, up 224.3%.」
The Company reported concrete progress in improving profitability, with operating profit increasing 96.0% year on year, against a backdrop of withdrawing from unprofitable businesses, reducing the number of stores, and cutting personnel and other expenses. - FY2016First statedAnnual report
「Going forward, the Company will reorganise its operations by establishing a Wellness Business Division overseeing the relaxation salon and Curves businesses, with the aim of further improving profitability and strengthening organisational management. In sales, it will focus on further strengthening its core House of Rose directly operated store business while pursuing management rationalisation and greater efficiency to steadily improve performance.」
The Company has identified profitability, its management structure, further strengthening directly operated stores, and rationalisation and efficiency as interrelated management priorities.