Reliance on Production in China and Diversification of Sourcing Routes

「Many of the products handled by the company, including products manufactured by domestic business partners and products developed in-house, are manufactured in China and ASEAN countries. Consequently, changes in political and economic conditions or infectious disease outbreaks in these regions may disrupt the stable supply of products. If such an event occurs, the company will pursue alternative sourcing from third countries, but is expected to incur lost sales opportunities due to sourcing delays and higher sourcing costs」

「Because of the company’s increasing dependence on China for merchandise procurement, it is working to diversify its sourcing channels. If an unpredictable event, such as a political or economic disruption or an infectious disease outbreak in China or ASEAN countries, where its manufacturing bases are located, impedes product imports, the company will procure the required merchandise from third countries.」

「Because of the company’s increasing dependence on China for merchandise procurement, it is working to diversify its sourcing channels. If an unpredictable event, such as a political or economic disruption or an infectious disease outbreak in China or ASEAN countries, where its manufacturing bases are located, impedes product imports, the company will procure the required merchandise from third countries.」

「As a result, during the cumulative third quarter period, sales at all chain stores were ¥141.368 billion, up 2.5% year on year and down 2.1% year on year at existing stores, operating revenue was ¥106.162 billion, up 5.3%, operating profit was ¥20.678 billion, down 0.4%, ordinary profit was ¥21.086 billion, down 0.5%, and quarterly net profit was ¥13.086 billion, down 0.9%, due to sluggish sales of cold-weather products caused by the warm winter and the prolonged weakness of the yen.」

「In addition, the business environment is becoming more difficult due to higher procurement prices caused by the weaker yen and intensifying competition across business sectors.」

「In the work uniform industry, corporate demand was recovering as economic activity resumed after the COVID-19 pandemic, but the difficult business environment continues due to higher procurement costs caused by the weaker yen and intensifying competition across business sectors.」

「Because of the company’s increasing dependence on China for merchandise procurement, it is working to diversify its sourcing channels. If an unpredictable event, such as a political or economic disruption or an infectious disease outbreak in China or ASEAN countries, where its manufacturing bases are located, impedes product imports, the company will procure the required merchandise from third countries.」

「In the work uniform industry, despite tailwinds from seasonal factors and the easing of restrictions related to COVID-19, the difficult business environment continues to be affected by soaring global resource prices and the weaker yen.」

「However, the difficult business environment continues due to the weaker yen, higher raw material prices and delivery delays caused by China’s lockdowns.」

「In the working-uniform industry, the summer selling season became active earlier than usual due to extreme heat, but corporate demand remained sluggish. In addition, the operating environment has become increasingly challenging due to the weaker yen, surging raw-material costs, and delivery delays caused by China's lockdowns.」

「Because dependence on China for product procurement has become high, the company is working to diversify its procurement routes. If an unforeseeable event involving the political or economic conditions or infectious diseases in China or ASEAN countries, which are manufacturing bases, disrupts product imports, the company will procure the shortfall from third countries. The greater the shortfall, the longer procurement will take, resulting in expected lost sales opportunities and potentially affecting the company's operating results.」

「In the working-uniform industry, corporate uniforms remained sluggish due to stagnant economic activity and unsettled weather. In addition, pressure for procurement costs to rise remained strong due to the weaker yen, raw materials, and delivery charges, creating a challenging operating environment.」

「In the working-uniform industry, sales of summer products were sluggish due to unsettled weather, while procurement-price pressures intensified due to the weaker yen and surging labor, raw-material, and ocean-freight costs at overseas production sites, creating a challenging operating environment.」

「If an unforeseeable event involving the political or economic conditions or infectious diseases in China or ASEAN countries, which are manufacturing bases, disrupts product imports, the company will procure the shortfall from third countries. The greater the shortfall, the longer procurement will take, and lost sales opportunities are expected to result.」

「Because dependence on China for product procurement has become very high, the company is working to diversify its procurement routes. However, if an unforeseeable event involving China's political or economic conditions, infectious diseases, or other factors disrupts product imports, the company will procure the shortfall from countries other than China.」

「In the working-uniform industry, demand for functional apparel has increased, but the operating environment remains challenging as procurement-cost pressures intensify due to stronger competition across industry boundaries, surging labor costs at overseas production sites such as China, and rising domestic logistics costs.」

「In the working-uniform industry, the Tokyo Olympics and rising construction demand related to inbound tourism boosted the overall market. However, the operating environment remains challenging due to higher procurement costs resulting from surging labor and raw-material costs at overseas production sites, as well as competition with e-commerce websites.」

「Cost pressures remain strong and the operating environment remains challenging due to surging labor and raw-material costs at overseas production sites, including China, and rising domestic logistics costs resulting from labor shortages.」

「In the working-uniform industry, business remained strong, supported by the Tokyo Olympics and expanding construction demand resulting from the increase in visitors to Japan. However, the operating environment has become increasingly challenging due to higher labor costs at overseas production sites, including China, and rising domestic logistics costs.」

「In the working-uniform industry, sales of apparel increased substantially as air-conditioned workwear became popular as a measure against extreme heat. However, procurement prices have risen due to surging labor costs at overseas production sites, higher resource prices, and the weaker-yen trend, and the operating environment remains challenging.」

「In the working-uniform industry, the summer selling season got off to a strong start, but the operating environment remains challenging as costs rise due to surging labor and raw-material expenses at overseas production sites, while competition across store formats has intensified, including competition from the sports-shoe industry, which has begun selling safety shoes.」

「Because dependence on China for product procurement has become very high, the company is working to diversify its procurement routes. However, if an unforeseeable event involving China's political or economic conditions disrupts product imports, the company will procure the shortfall from countries other than China.」

「In the working-uniform industry, corporate demand remained firm, supported by strong corporate earnings. However, procurement prices rose due to the weaker yen and surging labor and raw-material costs at overseas production sites, while the emergence of online sales has intensified competition across store formats, leaving the operating environment difficult to view optimistically.」

「However, procurement prices have risen due to surging labor and raw-material costs at overseas production sites, and the operating environment remains challenging.」

「In the working-uniform industry, the summer selling season got off to a strong start, but the operating environment remains challenging due to higher procurement costs, including rising labor expenses at overseas production sites, and intensified price competition across store formats.」

「In the working-uniform industry, sales of both summer and winter products remained firm despite the impact of unsettled weather. However, the operating environment remains challenging due to intensified price competition with other companies and higher costs resulting from rising labor expenses at overseas production sites.」

「Because dependence on China for product procurement has become very high, the company is working to diversify its procurement routes. However, if an unforeseeable event involving China's political or economic conditions disrupts product imports, the company will procure the shortfall from countries other than China.」