Downward Pressure on the Gross Profit Margin from Deflationary Preferences and Discount Promotions
First written in FY2016-Q3. 16 of 31 entries say "Worsened", first in FY2017-Q1. Latest entry: 2026-07-10.
Himaraya moved to the "Worse" side of this theme in 2023, 3 years after the typical company in this theme (2020).
The whole theme swung hardest in 2024: 4 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「The gross profit margin remained below the previous year's level because we proceeded with price adjustments mainly for seasonal merchandise once signs of a mild winter emerged.」
The adjustment of prices for seasonal products in response to the mild winter actually emerged as downward pressure on the gross profit margin. - FY2025MitigatedAnnual report
「The gross profit margin was also slightly above the previous period's level, partly because inventory conditions are improving.」
The downward pressure on the gross margin eased from the previous period, partly because inventory conditions are improving. - FY2025-H1MitigatedAnnual report
「Gross profit margin was higher than in the previous fiscal year, as the Company maintained appropriate inventory levels, particularly in apparel, by controlling purchases in line with sales trends and sought to limit markdown disposals.」
Maintaining appropriate inventory levels and limiting markdown disposals eased the previous downward pressure on the gross margin, and the gross profit margin exceeded the previous period's level. - FY2024-Q3RestatedAnnual report
「The gross profit margin also declined because of efforts to clear excess inventory across the apparel market and markdowns on ski and snowboard equipment.」
The market-wide elimination of excess inventory and markdowns on ski and snowboard equipment continue to put downward pressure on the gross profit margin. - FY2024-Q2WorsenedAnnual report
「The gross profit margin also declined because of efforts to clear excess inventory across the autumn/winter apparel market, where sales typically account for a larger proportion seasonally, and markdowns on ski and snowboard equipment.」
In addition to consumers' price-conscious purchasing trends and the market-wide efforts to eliminate excess inventory, markdowns on ski and snowboard equipment emerged as a factor behind the decline in the gross margin. - FY2024-Q1WorsenedAnnual report
「The gross profit margin declined due to the impact of categories undergoing price adjustments and the higher proportion of autumn/winter apparel sold after markdowns as high temperatures persisted from autumn onward.」
In addition to the pressure from price competition and inventory adjustments, market price adjustments and the higher proportion of markdown sales caused by high temperatures contributed to the decline in the gross margin. - FY2023WorsenedAnnual report
「The gross profit margin fell sharply, down 1.9 percentage points from the previous period, as the company responded promptly to apparel sales affected by winter temperatures and changes in the market environment for camping products in the outdoor category, while making inventory normalization in that category its highest priority.」
The factors putting downward pressure on the gross margin included the impact of temperatures on apparel, changes in the market environment for camping products, and inventory normalization efforts. The margin declined by 1.9 percentage points from the previous period. - FY2023-Q2WorsenedAnnual report
「Meanwhile, the gross profit margin declined as the company reduced inventory of apparel affected by temperature trends and camping equipment in the process of adjusting supply and demand.」
In addition to the previous factors of price competition and the burden of clearing inventory, apparel-related temperature effects and inventory reductions for camping equipment were cited as factors behind the decline in the gross margin. - FY2022MitigatedAnnual report
「Gross profit for the consolidated fiscal year was ¥21,631 million, mainly because the company maintained appropriate inventory control while avoiding excessive price competition throughout the year, and therefore did not incur a significant inventory clearance burden.」
Regarding downward pressure on the gross margin from price competition and inventory clearance, the company explained that it avoided excessive price competition and did not incur a significant burden from clearing inventory. - FY2021MitigatedAnnual report
「The consolidated gross profit margin was 35.8%, up 2.0 percentage points from the previous year, mainly because the company maintained appropriate inventory control throughout the year without incurring a significant inventory clearance burden and improved margins in its e-commerce business.」
Improved profitability in the e-commerce business and a reduced burden from clearing inventory mitigated the previous downward pressure on the gross margin from price competition and discounting. - FY2021-Q3MitigatedAnnual report
「The consolidated gross profit margin was 35.7%, up 2.7 percentage points from the same period of the previous fiscal year, because seasonal trends progressed smoothly in the first half and the company did not incur an inventory clearance burden.」
The gross margin rose year on year because seasonal trends were smooth and no burden from clearing inventory arose, among other factors, mitigating the previous downward pressure from discounting and inventory clearance. - FY2021-Q1MitigatedAnnual report
「The main factor was the end of the cashless payment points-rebate program in e-commerce, which eased the excessive price competition seen in the previous period.」
The company stated that the excessive price competition in e-commerce seen in the previous period had eased, mitigating some of the downward pressure on the gross margin. - FY2020MitigatedAnnual report
「The consolidated gross profit margin was 33.8%, down 0.4 percentage points from the previous fiscal year, partly due to the clearance of winter merchandise and the impact of sales held in September 2019 before the consumption tax rate increase.」
Although the gross margin declined year on year, the decline narrowed from 0.7 percentage points in the immediately preceding third quarter to 0.4 percentage points for the full year. - FY2020-Q3MitigatedAnnual report
「The consolidated gross profit margin was 33.0%, down 0.7 percentage points from the same period of the previous fiscal year, partly due to the clearance of winter merchandise and the impact of sales held in September before the consumption tax rate increase.」
Although the gross margin declined year on year, the decline narrowed from 1.0 percentage points in the previous quarter to 0.7 percentage points. Downward pressure from clearance of winter products and related factors continued. - FY2020-Q2WorsenedAnnual report
「The consolidated gross profit margin was 33.0%, down 1.0 percentage point from the same period of the previous fiscal year, partly due to the clearance of winter merchandise and the impact of sales held in September before the consumption tax rate increase.」
In addition to e-commerce price competition and factors from the previous year, clearance of winter-product inventory and sales held before the consumption tax rate increase were cited as factors behind the decline in the gross margin, which fell 1.0 percentage point year on year. - FY2020-Q1MitigatedAnnual report
「The consolidated gross profit margin was 34.5%, down 0.1 percentage points from the same period of the previous fiscal year, partly due to the impact of sales held in September before the consumption tax rate increase.」
Downward pressure on the gross margin remained, but the year-on-year decline narrowed to 0.1 percentage points. The impact of sales held before the consumption tax rate increase was cited as a new factor behind the decline. - FY2019-Q3Downward pressure on the gross margin continued, but the year-on-year decline narrowedAnnual report
「The consolidated gross profit margin was 33.7%, down 0.8 percentage points from the same period of the previous year, due to the substantial growth of e-commerce sales, which are strongly affected by price competition, as well as the increased burden of clearing inventory caused by a mild winter and low snowfall.」
E-commerce sales, where price competition is intense, and the increased burden of clearing inventory due to the mild winter and limited snowfall continued to weigh on the gross margin. - FY2019-Q2WorsenedAnnual report
「The consolidated gross profit margin was 34.0%, down 1.1 percentage points from the same period of the previous year, due to the substantial growth of e-commerce sales, which are strongly affected by price competition, as well as the increased burden of clearing inventory caused by a mild winter and low snowfall.」
In addition to conventional e-commerce sales, the increased burden of clearing inventory caused by the mild winter and limited snowfall was cited as a factor behind the decline in the gross margin, which fell 1.1 percentage points year on year. - FY2019-Q1WorsenedAnnual report
「The consolidated gross profit margin was 34.6%, down 1.5 percentage points from the same period of the previous fiscal year, partly because online sales, which are strongly affected by price competition, grew substantially.」
Growth in internet sales, where price competition is intense, emerged as a factor behind the decline in the gross margin, which fell 1.5 percentage points year on year. - FY2018WorsenedAnnual report
「The consolidated gross profit margin was 34.9%, down 0.2 percentage points from the previous fiscal year, partly because online sales, which are strongly affected by price competition, grew substantially.」
For the full year, growth in internet sales, where price competition is intense, was cited as a factor behind downward pressure on the gross margin, which declined 0.2 percentage points from the previous period. - FY2018-Q3WorsenedAnnual report
「The consolidated gross profit margin was 34.5%, down 0.3 percentage points from the same period of the previous year, partly because internet sales, which are strongly affected by price competition, grew substantially.」
The gross margin declined 0.3 percentage points year on year, with growth in internet sales, where price competition is intense, cited in addition to the previously cited deflationary consumer sentiment and discount promotions as a factor behind the decline. - FY2018-Q2MitigatedAnnual report
「The consolidated gross profit margin was 35.1%, up 0.8 percentage points from the same period of the previous year, due in part to favourable weather and improvements made during the previous fiscal year to the winter-product inventory mix.」
The consolidated gross margin rose 0.8 percentage points year on year, as downward pressure from deflationary consumer sentiment and discounting eased this quarter. - FY2018-Q1MitigatedAnnual report
「The consolidated gross profit margin was 36.1%, up 0.3 percentage points from the same period of the previous year, reflecting detailed purchasing and inventory management for highly seasonal products, among other factors.」
Inventory purchasing and management for seasonal products lifted the consolidated gross margin by 0.3 percentage points year on year, mitigating the downward pressure from deflationary consumer sentiment and discount promotions this quarter. - FY2017WorsenedAnnual report
「The consolidated gross profit margin was 35.1%, down 1.0 percentage point from the previous fiscal year, mainly because the company strengthened clearance sales of winter clothing, miscellaneous goods and winter sports equipment due to the warm winter and low snowfall.」
Increased clearance sales against a backdrop of mild weather and limited snowfall reduced the full-year gross margin by 1.0 percentage point from the previous period. - FY2017-Q3MitigatedAnnual report
「The consolidated gross profit margin was 34.8%, down 1.2 percentage points from the same period of the previous fiscal year, mainly because the company strengthened clearance sales of winter clothing, miscellaneous goods and winter sports equipment due to the warm winter and low snowfall.」
Although the gross margin declined year on year, it rose from 34.3% in the previous quarter to 34.8%, while the year-on-year decline narrowed to 1.2 percentage points. - FY2017-Q2WorsenedAnnual report
「The consolidated gross profit margin was 34.3%, down 1.8 percentage points from the same period of the previous fiscal year, as the company strengthened clearance sales of winter clothing, miscellaneous goods and winter sports equipment due to the warm winter and low snowfall, and promoted discount campaigns in a retail market that had shifted toward deflationary preferences.」
The consolidated gross margin was 34.3%, down from 35.8% in the immediately preceding first-quarter report. The year-on-year decline was 1.8 percentage points, narrowing from the previously reported 2.1 percentage points. - FY2017-Q1WorsenedAnnual report
「The consolidated gross margin was 35.8%, down 2.1 percentage points from the same period of the previous year, as discount promotions were expanded in the retail market, which had shifted toward deflationary consumer sentiment.」
The gross margin was 35.8%, with the year-on-year decline widening to 2.1 percentage points. The decline in the gross margin advanced from the previously reported 36.0% and 1.6-point decline. - FY2016-Q3First statedAnnual report
「The consolidated gross margin was 36.0%, down 1.6 percentage points from the same period of the previous year, as winter seasonal products, particularly ski and snowboard equipment, remained sluggish and discount promotions were expanded during the spring selling season amid stronger deflationary consumer sentiment.」
Against a backdrop of deflationary consumer sentiment and discount promotions, the gross margin was 36.0%, down 1.6 percentage points year on year.