Inventory growth driven by aggressive store expansion and the risk of slow-moving inventory
First written in FY2016. 22 of 29 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Pan Pacific International Holdings moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「This was mainly due to increases of ¥4.1335 billion in cash and deposits, ¥2.4112 billion in merchandise and finished goods, ¥1.4155 billion in property, plant and equipment, and ¥923.2 million in intangible assets, partly offset by a ¥1.0036 billion decrease in investment securities.」
Merchandise and finished goods increased by ¥2.4112 billion from the end of the previous fiscal year, bringing the balance to ¥24.9014 billion. Inventory valuation losses included in cost of sales also increased from ¥1.776 billion to ¥2.87 billion. - FY2026-H1WorsenedAnnual report
「This was mainly due to increases of ¥41,134 million in cash and deposits, ¥10,401 million in notes and accounts receivable, ¥6,866 million in installment receivables, ¥31,205 million in merchandise and finished goods, ¥11,277 million in deposits, and ¥7,724 million in property, plant and equipment, partly offset by a ¥11,837 million decrease in investment securities.」
Merchandise and finished goods increased by ¥31.205 billion from the end of the previous consolidated fiscal year, expanding inventory exposure. - FY2025WorsenedAnnual report
「Merchandise and finished goods increased by ¥25,923 million.」
The balance of merchandise and finished goods increased by ¥25,923 million, from ¥198,979 million at the end of the previous fiscal year to ¥224,902 million, expanding inventory exposure. The inventory write-down was ¥1,776 million. - FY2025-H1WorsenedAnnual report
「This was mainly due to increases of ¥3.0229 billion in cash and deposits, ¥792 million in installment accounts receivable, and ¥3.0475 billion in merchandise and products, partly offset by a ¥637.4 million decrease in property, plant and equipment.」
Merchandise and finished goods increased by ¥30,475 million, from ¥198,979 million at the end of June 2024 to ¥229,454 million at the end of December 2024, expanding inventory exposure. - FY2024WorsenedAnnual report
「This was mainly due to increases of ¥444.2 million in merchandise and products, ¥1.0443 billion in deposits, ¥4.6254 billion in property, plant and equipment, ¥611.7 million in intangible assets, and ¥492.3 million in deferred tax assets, partly offset by a ¥6.9369 billion decrease in cash and deposits.」
Merchandise and products increased by ¥444.2 million from the end of the previous fiscal year, bringing the balance to ¥19.8979 billion. Inventory exposure expanded again after contracting during FY2023. - FY2024-Q3MitigatedAnnual report
「This was mainly due to increases of ¥344.2 million in notes and accounts receivable, ¥334 million in installment accounts receivable, ¥1.0027 billion in deposits, and ¥2.8565 billion in property, plant and equipment, partly offset by decreases of ¥7.6174 billion in cash and deposits and ¥244.8 million in merchandise and products.」
Merchandise and products decreased by ¥244.8 million from the end of the previous consolidated fiscal year, from ¥19.4537 billion to ¥19.2089 billion. Inventory exposure contracted. - FY2024-Q2WorsenedAnnual report
「This was mainly due to increases of ¥612.9 million in notes and accounts receivable, ¥626.3 million in installment accounts receivable, ¥1.1663 billion in merchandise and products, ¥1.6828 billion in deposits, and ¥2.4688 billion in property, plant and equipment, partly offset by a ¥5.5206 billion decrease in cash and deposits.」
Merchandise and products increased by ¥1.1663 billion from the end of the previous consolidated fiscal year, bringing the balance to ¥20.62 billion. The inventory balance, which had contracted during FY2023, increased again. - FY2024-Q1MitigatedAnnual report
「This was mainly due to increases of ¥187.5 million in notes and accounts receivable, ¥304 million in deposits, and ¥746 million in property, plant and equipment, partly offset by decreases of ¥183.6 million in installment accounts receivable and ¥470.6 million in merchandise and products.」
Merchandise and products decreased by ¥470.6 million from ¥19.4537 billion at the end of June 2023 to ¥18.9831 billion, further reducing inventory exposure. - FY2023MitigatedAnnual report
「This was mainly due to increases of ¥6.5311 billion in cash and deposits, ¥322.8 million in installment accounts receivable, ¥2.4144 billion in property, plant and equipment, and ¥741.7 million in investment securities, partly offset by a ¥1.1356 billion decrease in merchandise and products.」
The merchandise and products balance decreased from ¥20.5893 billion at the end of the previous fiscal year to ¥19.4537 billion, while the inventory valuation loss included in cost of sales decreased from ¥387.2 million to ¥327.6 million. - FY2023-Q3MitigatedAnnual report
「This was mainly due to increases of ¥3.1286 billion in cash and deposits, ¥230.3 million in installment accounts receivable, ¥2.0767 billion in property, plant and equipment, and ¥617.3 million in investment securities, partly offset by decreases of ¥1.3486 billion in merchandise and products and ¥332.6 million in goodwill.」
Merchandise and products decreased by ¥1.3486 billion from ¥20.5893 billion at the end of June 2022, bringing the inventory balance to ¥19.2407 billion. - FY2023-Q2WorsenedAnnual report
「Merchandise and products 205,893 210,087」
The merchandise and products balance increased from ¥20.5893 billion at the end of June 2022 to ¥21.0087 billion at the end of December 2022, expanding inventory exposure. - FY2023-Q1MitigatedAnnual report
「This was mainly due to increases of ¥1.5841 billion in property, plant and equipment, ¥308 million in goodwill, and ¥459.3 million in investment securities, partly offset by decreases of ¥1.9997 billion in cash and deposits and ¥596.3 million in merchandise and products.」
Merchandise and products decreased by ¥596.3 million from the end of the previous consolidated fiscal year, and the inventory balance fell from ¥20.5893 billion to ¥19.993 billion. - FY2022WorsenedAnnual report
「This was mainly due to increases of ¥1.9255 billion in cash and deposits, ¥247.7 million in merchandise and products, ¥2.1315 billion in property, plant and equipment, and ¥634.8 million in goodwill, partly offset by decreases of ¥834.6 million in notes and accounts receivable, ¥1.3369 billion in installment accounts receivable, and ¥371.8 million in deferred tax assets.」
The merchandise and products balance increased by ¥247.7 million from the end of the previous fiscal year to ¥20.5893 billion. While inventory exposure expanded, the inventory valuation loss decreased from ¥517.3 million in the previous fiscal year to ¥387.2 million. - FY2022-Q2WorsenedAnnual report
「This was mainly due to increases of ¥917.5 million in notes and accounts receivable, ¥1.5487 billion in installment accounts receivable, ¥1.4901 billion in merchandise and products, and ¥1.2176 billion in deposits.」
Merchandise and products increased by ¥1.4901 billion from the end of June 2021, bringing the balance to ¥21.8317 billion. Inventory exposure continues to expand. - FY2021WorsenedAnnual report
「Merchandise and products increased by ¥1.5641 billion, …」
The merchandise and products balance increased by ¥1.5641 billion from the end of the previous consolidated fiscal year to ¥20.3416 billion, and an inventory valuation loss of ¥517.3 million was also recorded. Inventory exposure and valuation risk increased. - FY2021-Q3WorsenedAnnual report
「Assets increased by ¥2.6081 billion from the end of the previous consolidated fiscal year, 30 June 2020, to ¥132.3312 billion. This was mainly due to increases of ¥2.2702 billion in cash and deposits, ¥780.8 million in merchandise and products, and ¥580.4 million in investment securities, partly offset by a ¥409.7 million decrease in leasehold and guarantee deposits.」
Merchandise and products increased by ¥780.8 million from the end of June 2020, and inventory exposure continues to expand. - FY2021-Q2WorsenedAnnual report
「This was mainly due to increases of ¥2.7194 billion in cash and deposits, ¥891.9 million in notes and accounts receivable, ¥649.8 million in installment accounts receivable, ¥1.6702 billion in merchandise and products, and ¥1.1645 billion in deposits.」
Merchandise and products increased by ¥1.6702 billion from the end of June 2020, bringing the balance to ¥20.4477 billion. Inventory exposure has expanded again. - FY2020-Q3WorsenedAnnual report
「Merchandise and products 188,510 190,305」
The merchandise and products balance increased by ¥179.5 million from ¥18.851 billion at the end of the previous consolidated fiscal year to ¥19.0305 billion, and inventory exposure continues to expand. - FY2020-Q2WorsenedAnnual report
「This was mainly due to increases of ¥1.6095 billion in cash and deposits, ¥630.3 million in notes and accounts receivable, ¥1.1865 billion in installment accounts receivable, and ¥1.2268 billion in merchandise and products.」
Merchandise and products increased by ¥1.2268 billion from the end of the previous consolidated fiscal year, bringing the balance to ¥20.0778 billion. Inventory exposure continues to expand. - FY2020-Q1MitigatedAnnual report
「This was mainly due to increases of ¥409.1 million in notes and accounts receivable, and ¥592.8 million in installment accounts receivable, partly offset by decreases of ¥1.1931 billion in cash and deposits, ¥657.1 million in merchandise and products, and ¥535.3 million in deposits.」
Merchandise and products decreased by ¥657.1 million from the end of the previous consolidated fiscal year, reducing the inventory balance during the current quarter after its previous expansion. - FY2019-Q3WorsenedAnnual report
「Merchandise 135,781 181,578」
The merchandise balance on the consolidated balance sheet increased from ¥13.5781 billion at the end of June 2018 to ¥18.1578 billion at the end of March 2019, and the merchandise balance continues to increase. - FY2019-Q2WorsenedAnnual report
「This was mainly due to increases of ¥18.6521 billion in cash and deposits, ¥1.7369 billion in merchandise, ¥1.7762 billion in property, plant and equipment and ¥550.5 million in investment securities, partly offset by a ¥891.3 million decrease in long-term loans receivable.」
Merchandise increased by ¥1.7369 billion from the end of the previous consolidated fiscal year, and inventory exposure associated with aggressive store expansion and other factors continues to grow. - FY2019-Q1WorsenedAnnual report
「This was mainly due to increases of ¥4.7434 billion in cash and deposits, ¥136.1 million in merchandise, ¥1.5623 billion in property, plant and equipment and ¥258.3 million in investment securities, partly offset by a ¥612.2 million decrease in long-term loans receivable.」
Merchandise increased by ¥136.1 million from the end of June 2018, and inventory exposure associated with aggressive store expansion continues to grow. - FY2018-Q3WorsenedAnnual report
「This was mainly due to increases of ¥1.3199 billion in merchandise, ¥2.0709 billion in property, plant and equipment, ¥1.3406 billion in goodwill, ¥2.272 billion in investment securities and ¥7.3953 billion in long-term loans receivable.」
Merchandise increased by ¥1.3199 billion from the end of the previous consolidated fiscal year, and inventory exposure associated with aggressive store expansion and other factors continues to grow. - FY2018-Q2WorsenedAnnual report
「This was mainly due to increases of ¥2.1171 billion in merchandise, ¥1.2299 billion in property, plant and equipment, ¥1.3619 billion in goodwill, ¥2.1648 billion in investment securities and ¥7.7767 billion in long-term loans receivable, partly offset by a ¥2.4663 billion decrease in cash and deposits.」
The merchandise balance increased by ¥2.1171 billion from the end of the previous consolidated fiscal year, further expanding inventory exposure. - FY2017WorsenedAnnual report
「At present, our group is actively opening stores, and merchandise inventories are generally trending upward across the group.」
In connection with aggressive store expansion, merchandise and products increased from ¥117.4 billion in the previous fiscal year to ¥123.969 billion, expanding inventory exposure. Management measures using POS and core IT systems, as well as slow-moving inventory risk, continue to be described. - FY2016First statedAnnual report
「For merchandise inventories, we seek to mitigate inventory risk by using the POS system and core IT system to manage sales trends and inventory levels in real time. However, changes in consumer demand and weather conditions may result in slow-moving inventory.」
The company describes real-time management through its POS and core IT systems as a measure, while noting the possibility of slow-moving inventory due to changes in demand and weather conditions.