Foreign Exchange Risk Associated with Foreign-Currency Purchases
First written in FY2016. 6 of 16 entries say "Restated". Latest entry: 2026-08-03.
Workman moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 42 of 66 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-08-03MitigatedEarnings presentation
「Progressing with planned forward exchange contracts to avoid downside risk to next fiscal year’s results」
For direct imports in the fiscal year ending March 2027, the company set the forward exchange contract ratio at 85% and is responding to downside risk from exchange-rate movements. - FY2026WorsenedAnnual report
「Private-label products account for 71.9% of total sales across all stores in our chain, and we generally source them directly from overseas. Purchase prices may rise because of a weaker yen beyond expectations, higher raw-material prices and increased ocean freight costs. We enter into forward exchange contracts as a measure to avoid exchange-rate risk, but there is no guarantee that the risk can be avoided completely, and」
The share of private-label products sourced directly from overseas rose to 71.9%, expanding the exposure from 68.5% in the previous year. The company continues to cite higher purchase prices due to yen depreciation, raw-material prices and ocean freight costs, as well as the limitations of forward exchange contracts. - 2026-05-11MitigatedEarnings presentation
「Fiscal year ending March 2027 Forward exchange contract ratio Approximately 80%」
Presented a plan to hedge approximately 80% of foreign currency exposure in the next fiscal year as a response to exchange-rate fluctuations. Concerns over procurement costs were disclosed separately. - FY2025WorsenedAnnual report
「Private-label products account for 68.5% of total sales across all stores in our chain, and we generally source them directly from overseas. Purchase prices may rise because of a weaker yen beyond expectations, higher raw-material prices and increased ocean freight costs.」
The 68.5% share of private-label products sourced directly from overseas indicates the company's exposure to higher purchase prices due to yen depreciation, raw-material prices and ocean freight costs. - FY2024WorsenedAnnual report
「Private-label products account for 67.8% of total sales across all stores in our chain, and we generally source them directly from overseas. Purchase prices may rise because of a weaker yen beyond expectations, higher raw-material prices and increased ocean freight costs.」
The 67.8% share of private-label products sourced directly from overseas quantifies the company's exposure to the risk of higher purchase prices due to yen depreciation, raw-material prices and ocean freight costs. - FY2024-Q3RestatedAnnual report
「Personal consumption has also become increasingly oriented toward saving as prices rise amid the normalization of yen depreciation and persistently high energy and other prices.」
The company describes continued yen depreciation and rising prices, reiterating the pressure for higher purchase prices, including those for foreign-currency purchases. - FY2024-Q2WorsenedAnnual report
「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.」
The company states that higher purchase prices due to yen depreciation have continued and that pressure for higher purchase prices, including those denominated in foreign currencies, has intensified. - FY2023RestatedAnnual report
「Private-label products account for 65.9% of total sales across all stores in our chain, and we generally source them directly from overseas. Purchase prices may rise because of a weaker yen beyond expectations, higher raw-material prices and increased ocean freight costs. We enter into forward exchange contracts as a measure to avoid exchange-rate risk, but there is no guarantee that the risk can be avoided completely, and」
The company indicates that private-label products account for 65.9% of total sales across the chain and that it depends on direct overseas sourcing, while citing higher purchase prices due to yen depreciation, raw-material prices and ocean freight costs, as well as the limitations of forward exchange contracts. - FY2023-Q3WorsenedAnnual report
「During the cumulative third quarter under review, Japan's economy showed signs of revitalization following a shift in policies toward living with COVID-19, but the outlook remained uncertain because of sharp exchange-rate fluctuations and higher energy and raw-material prices resulting from the situation in Ukraine.」
The company cites sharp exchange-rate fluctuations and higher energy and raw-material prices resulting from the situation in Ukraine, identifying external factors that could lead to higher purchase prices. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter under review, Japan's economy continued to face an uncertain outlook. Although the transition to a new stage toward living with COVID-19 progressed, energy and raw-material prices rose because of the prolonged situation in Ukraine, while the yen depreciated sharply as the interest-rate differential between Japan and the United States widened.」
The company continues to cite the rapid depreciation of the yen resulting from the widening Japan-U.S. interest-rate differential and the associated pressure for higher purchase prices. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter under review, Japan's economy was moving toward normalization of social and economic activity as restrictions related to COVID-19 were eased, but the outlook became uncertain because of higher resource prices and other costs resulting from the situation in Ukraine and the rapid depreciation of the yen.」
The company cites the rapid depreciation of the yen and higher resource prices and other costs, indicating mounting pressure for higher purchase prices associated with foreign-currency purchases. - FY2022RestatedAnnual report
「Private-label products account for approximately 60% of total sales across all stores in our chain, and we generally source them directly from overseas. Purchase prices may rise because of a weaker yen beyond expectations, higher raw-material prices and increased ocean freight costs. We enter into forward exchange contracts as a measure to avoid exchange-rate risk, but there is no guarantee that the risk can be avoided completely, and」
The company indicates that approximately 60% of private-label products are directly sourced from overseas and continues to address the risk through forward exchange contracts, while reiterating the risk of higher purchase prices from yen depreciation, raw-material costs and ocean freight costs. - FY2021RestatedAnnual report
「We enter into forward exchange contracts to avoid the risk of exchange-rate fluctuations on foreign-currency transactions and do not engage in speculative transactions.」
The company continues to hedge through forward exchange contracts and maintain a non-speculative policy. - FY2019RestatedAnnual report
「We enter into forward exchange contracts to avoid the risk of exchange-rate fluctuations on foreign-currency transactions and do not engage in speculative transactions.」
The company continues to use forward exchange contracts against exchange-rate risk and maintains a policy of not engaging in speculative transactions. - FY2018MitigatedAnnual report
「We enter into forward exchange contracts to avoid the risk of exchange-rate fluctuations on foreign-currency transactions and do not engage in speculative transactions.」
The company has stated a policy of avoiding exchange-rate risk on foreign-currency purchases through forward exchange contracts. - FY2016First statedAnnual report
「We directly source some products from overseas in foreign currencies. If exchange-rate fluctuations exceed expectations, purchase prices may rise and affect our business performance.」
Based on its direct sourcing in foreign currencies, the company identifies higher purchase prices resulting from exchange-rate fluctuations as a risk.