Strengthening Existing Businesses and Expanding the Earnings Base

「As a result, revenue in the Core Value segment was ¥12,479 million, up 2.3% year on year, and segment profit was ¥450 million, up 170.9% year on year.」

「The effects of these structural reforms have continued into the current fiscal year, and average sales per store have increased.」

「As the initiatives undertaken for each segment steadily took effect, profitability improved across all segments, resulting in higher revenue and profit and a return to profitability at the net income level.」

「To that end, we have focused particularly on stabilising earnings from our existing businesses and have pursued three priority initiatives: optimising the sales organisation, restructuring underperforming businesses, and solidifying growth businesses.」

「The Group closed unprofitable stores and opened new stores in the beauty and kimono businesses to strengthen its business structure, while also focusing on improving customer traffic to stores and exhibition and sales events with due attention to the spread of COVID-19. Sales followed a recovery trend.」

「Under these circumstances, the Group closed unprofitable stores and opened new stores in the beauty and kimono businesses to strengthen its business structure, while also focusing on improving customer traffic to stores and exhibition and sales events with due attention to the spread of COVID-19. Sales followed a recovery trend.」

「Under these circumstances, the Group closed unprofitable stores and opened new stores in the beauty and kimono and jewelry businesses to strengthen its business structure, while also focusing on improving customer traffic to stores and exhibition and sales events with due attention to the spread of COVID-19.」

「In the beauty business, customer visits improved as foot traffic increased, but sales were ¥497 million, down 2.7% year on year, following the closure of unprofitable stores, which reduced the number of stores by 9 year on year. Segment profit was ¥15 million, compared with a segment loss of ¥20 million in the same quarter of the previous year. The beauty business is working to strengthen earnings by improving service pricing and introducing new high-value-added menus, while continuing to close unprofitable stores and consider new business formats.」

「Under these circumstances, the Group worked to strengthen its business base by promoting operational efficiency and reducing store management and operating costs.」

「In the beauty business, customer visits had been recovering since the second quarter of the previous fiscal year, and sales were ¥511 million, up 15.8% year on year. The segment loss was ¥20 million, compared with a segment loss of ¥15 million in the same quarter of the previous year, partly because COVID-19-related losses from fixed costs such as rent fell substantially from the first quarter of the previous fiscal year. The company is controlling costs by thoroughly managing staffing levels in line with appointment volumes while preventing infections through rigorous appointment management. It is also working to improve earnings by closing unprofitable stores while strengthening product sales.」

「In this business environment, the Group gradually extended operating hours while developing an environment prioritizing the health and safety of customers and employees at all stores, and worked to reduce store operating and management costs across the company.」

「After the state of emergency was lifted, the Group developed an environment prioritizing the safety of customers and employees at all stores, gradually extended operating hours, and continued efforts to reduce store management and operating costs across the company. In the beauty business, after the state of emergency was lifted, the company extended operating hours while strengthening infection-control measures, including thorough store sanitation, staff health management and customer appointment management, and sales followed a recovery trend. With a contribution from 株式会社Ｌ.Ｂ.Ｇ, which became a consolidated subsidiary in the second half of the previous fiscal year, sales were ¥1,621 million, up 2.0% year on year, and segment profit was ¥51 million, up 73.8%.」

「The Group temporarily closed stores and substantially shortened operating hours while the state of emergency was in effect, but after it was lifted, resumed operations at all stores while developing an environment that prioritized the safety of customers and employees. Although travel across prefectural borders and outings remained restricted, resulting in canceled joint exhibition and sales events and lower attendance, the Group promoted more efficient store management and operating costs and worked to reduce costs across the company.」

「After the state of emergency was lifted, the company resumed operations while prioritizing the safety of customers and employees. It also developed an operating environment suited to the new lifestyle, reviewed the timing and customer-attraction methods for exhibition and sales events, and worked to reduce store management and operating costs.」

「At stores acquired from 株式会社かのこ in November 2019, the company is focusing on improving earnings by developing the overall operating and management environment and introducing store management expertise from its existing kimono business.」

「In the existing beauty business, sales were ¥1,589 million, up 5.7% year on year, owing to stronger product sales and contributions from 株式会社みうら, which became a subsidiary in the second quarter of the previous fiscal year, and 株式会社Ｌ.Ｂ.Ｇ, which became a subsidiary in the third quarter of the current fiscal year. In terms of profit, efforts to reduce fixed costs such as rent and promotional expenses in the existing beauty business, in addition to 株式会社みうら's contribution, resulted in segment profit of ¥29 million, up 245.8% year on year.」

「Sales in the kimono retail division remained firm, rising 0.8% year on year, owing to strong performance at the joint exhibition and sales event held in the second quarter and efforts to accelerate deliveries of ordered products.」

「In the kimono and jewelry business, the company opened 2 new stores and relocated and renovated 3 stores. Sales in the jewelry retail division fell 9.0% year on year, while sales in the kimono retail division remained firm, rising 1.3% year on year, partly because deliveries of ordered products proceeded smoothly.」

「In the kimono and jewelry business, “Kimono Events” were held at 191 venues nationwide as opportunities to wear kimono to create new customers. At joint large-scale events, the company is also working to attract mainly new customers rather than relying primarily on its existing customer base.」

「In the kimono and jewelry business, the kimono retail division renovated 10 stores and held “Kimono Events” at 142 venues nationwide as opportunities to wear kimono, working to create new customers,」

「In the kimono and jewelry business, the kimono retail division renovated 4 stores and held “Kimono Events” at 96 venues nationwide as opportunities to wear kimono, working to create new customers.」

「In the kimono and jewelry business, the kimono retail division renovated 2 stores and held “Kimono Events” at 59 venues nationwide as opportunities to wear kimono, working to create new customers,」

「Sales in the beauty business were ¥2,046 million, down 6.3% year on year, following the closure of 13 stores in the previous fiscal year and 3 stores in the current fiscal year. To establish a new earnings model after completing the consolidation of unprofitable stores, the company opened 2 new stores in the Kanto region. In terms of earnings, average spend improved as a result of enhanced technical training for staff and more efficient promotional activities, and efforts to reduce administrative costs resulted in segment profit of ¥41 million, up 16.5% year on year.」

「In the third quarter, the company opened 2 new stores in the Kanto region to establish a new earnings model after completing the consolidation of unprofitable stores. In terms of earnings, average spend improved as a result of enhanced technical training for staff and more efficient promotional activities, and efforts to reduce administrative costs resulted in segment profit of ¥35 million, up 88.0% year on year.」

「Sales were ¥1,022 million, down 6.9% year on year, following the closure of 13 unprofitable stores in the previous fiscal year. Sales at existing stores were 99.9% of the previous year, indicating that the ongoing decline in customer numbers had been brought under control. In terms of earnings, average spend improved as a result of enhanced technical training for staff and more efficient promotional activities, and efforts to reduce administrative costs resulted in segment profit of ¥22 million, compared with a segment loss of ¥4 million in the same quarter of the previous year.」

「Sales were ¥511 million, down 7.5% year on year, following the closure of 13 unprofitable stores in the previous fiscal year. In terms of earnings, customer numbers and average spend improved as a result of enhanced technical training for staff and more efficient promotional activities, resulting in segment profit of ¥10 million, compared with a segment loss of ¥3 million in the same quarter of the previous year.」

「In the kimono business, sales at existing stores remained firm at 101.1% of the previous year, in addition to higher sales from M&A, and the kimono and jewelry business achieved record-high sales and profit.」

「M&A has made a significant contribution to higher sales and profit in the kimono retail business, while sales at existing stores also remained firm at 100.8% of the prior-year quarter. During the current quarter, the company opened 2 new stores and relocated or renovated 5 stores to acquire new customers and stabilize the existing customer base, with the aim of further expanding earnings in the kimono retail business.」

「In the kimono retail business, M&A has contributed significantly to higher sales and profit, while sales at existing stores also remained firm at 102.2% of the prior-year quarter. To acquire new customers, stabilize the existing customer base and achieve further earnings growth, the company opened 1 new store and relocated or renovated 4 stores.」

「Sales at existing stores remained firm at 100.7% of the prior-year quarter, and renovations and relocations were carried out at 3 kimono retail stores and 1 fur retail store to actively acquire new customers, stabilize the existing customer base and achieve further earnings growth.」

「Strengthening existing businesses: expanding existing businesses by providing “substance and value”」