Profit pressure from rising selling, general and administrative expenses, including logistics costs
First written in FY2020-Q1. 5 of 13 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2026.
Happinet moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2026: 10 of 32 companies on the "Worse" side.
16 other companies' latest entry also says "Other".
- FY2026Continued increase in selling, general and administrative expensesAnnual report
「Total selling, general and administrative expenses increased from ¥33,250 million to ¥37,040 million.」
Selling, general and administrative expenses increased by ¥3,790 million year on year, but operating income rose 33.5% due to higher gross profit. - 2026-05-14WorsenedEarnings presentation
「Distribution costs 7,353 2.0 14.2 8,709 2.0 18.4」
Distribution costs increased 18.4% year on year, demonstrating an increase in distribution costs within selling, general and administrative expenses. - FY2026-H1Continued increase in selling, general and administrative expensesAnnual report
「Selling, general and administrative expenses increased from ¥15,156 million to ¥16,328 million.」
Selling, general and administrative expenses increased by ¥1,172 million year on year, but operating income rose 33.5% due to higher gross profit. - FY2025Continued increase in selling, general and administrative expensesAnnual report
「Total selling, general and administrative expenses increased from ¥30,205 million to ¥33,250 million.」
Selling, general and administrative expenses increased by ¥3,045 million year on year, but operating income rose 34.6% due to higher gross profit. - FY2025-H1Continued increase in selling, general and administrative expensesAnnual report
「Selling, general and administrative expenses 13,291 15,156」
Selling, general and administrative expenses increased from ¥13,291 million in the same period of the previous year to ¥15,156 million. However, consolidated operating income exceeded the previous year's level due to higher net sales and improved profitability in the video and music business. - FY2024-Q1MaterialisedAnnual report
「Earnings fell below the same period of the previous fiscal year because of initial costs incurred in developing new locations and opening company-operated shops.」
Initial costs for developing new locations and opening company-operated shops were incurred and drove the amusement business's segment profit down 27.1% year on year. - FY2023MaterialisedAnnual report
「Because of higher SG&A expenses resulting from the relocation of the Company's West Japan logistics center and the expansion of company-operated stores in the amusement business, including Gashacoco, the ordinary profit margin on sales was 2.0% (down 0.1 percentage points year on year) and ROE was 8.1% (down 0.5 percentage points).」
The increase in SG&A expenses associated with the relocation of the logistics center and the expansion of company-operated stores, including Gashacoco, actually occurred and weighed on profitability metrics. - FY2023-Q1MaterialisedAnnual report
「Earnings fell below the same period of the previous fiscal year because of higher SG&A expenses, including those resulting from the relocation of a logistics center.」
The increase in SG&A expenses associated with the relocation of the West Japan logistics center actually occurred and became a factor depressing earnings in the toy business and company-wide earnings. - FY2021-Q2MitigatedAnnual report
「Operating profit and ordinary profit also exceeded the same period of the previous year due to lower inventory valuation losses resulting from the maintenance of appropriate inventory levels and the restraint of selling, general and administrative expenses.」
For SG&A expenses, which had been weighing on earnings through the previous quarter, restraint became a factor in earnings improvement, and consolidated operating profit and ordinary profit exceeded the same period of the previous fiscal year. - FY2021-Q1MitigatedAnnual report
「Sales and profit both exceeded the same period of the previous year, owing to a decrease in selling expenses and general and administrative expenses, including advertising expenses.」
For SG&A expenses, which had been cited as a factor behind increases through the previous fiscal year, decreases in advertising and promotional expenses in the toy business became a factor in earnings improvement. - FY2020-Q3MaterialisedAnnual report
「Against this backdrop, the Group's sales and earnings both fell below the same period of the previous fiscal year because sales in all businesses remained sluggish during the year-end shopping season, valuation losses were recognized on slow-moving inventory, logistics costs increased, and depreciation expenses arose in connection with the partial launch of a new core system, resulting in higher SG&A expenses.」
In addition to logistics costs, depreciation expenses associated with the partial launch of the new core system also contributed to higher SG&A expenses, causing sales and earnings to fall below the same period of the previous fiscal year. - FY2020-Q2MaterialisedAnnual report
「Regarding the Group's operating results for the cumulative second quarter of the fiscal year, sales in the toy, video game and amusement businesses remained strong, but consolidated sales fell below the same period of the previous fiscal year because the audiovisual and music business remained sluggish. Earnings also fell below the same period of the previous fiscal year because SG&A expenses, including logistics and depreciation expenses, increased and an inventory valuation loss was recognized in the toy business.」
The increase in SG&A expenses, including logistics and depreciation expenses, continued and was a factor contributing to operating profit and other earnings falling below the same period of the previous fiscal year. SG&A expenses increased from ¥9,809 million in the same period of the previous fiscal year to ¥10,141 million. - FY2020-Q1First statedAnnual report
「Revenue and profit both fell below the levels of the same period of the previous year because there were no hit products capable of driving results and selling, general and administrative expenses, including logistics costs, increased.」
The increase in SG&A expenses, including logistics costs, was explicitly identified for the first time as a separate factor behind the year-on-year decline in sales and earnings. On the income statement, SG&A expenses increased from ¥4,666 million in the same period of the previous fiscal year to ¥4,921 million.