Profit pressure from higher selling, general and administrative expenses
First written in FY2017-Q1. 12 of 40 entries say "Restated". Latest entry: FY2027-H1.
Idom moved to the "Worse" side of this theme in 2018, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 6 of 21 companies on the "Worse" side.
9 other companies' latest entry also says "Other".
- FY2027-H1Operating income increased despite higher SG&A expensesAnnual report
「Selling, general and administrative expenses were ¥43,219 million, up 18.9% year on year. This reflected increases in land and rental expenses associated with opening large-format stores, depreciation associated with capital investment, personnel expenses from hiring staff in advance of new store openings in the second half of the fiscal year, development investments in CRM and AI systems, and provision for doubtful accounts associated with the increase in installment sales (Jisha-Ron), among other factors.」
Selling, general and administrative expenses were ¥43,219 million, up 18.9% year on year. Increases in land and rental expenses, depreciation, advance hiring, personnel expenses, system development investments and provision for doubtful accounts were identified as contributing factors. Operating profit, meanwhile, increased 8.6% year on year. - FY2026Slight increase in operating income despite higher SG&A expensesAnnual report
「Selling, general and administrative expenses increased due to higher personnel expenses associated with increased hiring for the expansion of large-format stores, higher rent and advertising expenses likewise associated with store openings, and outsourcing expenses for training sales personnel.」
Personnel expenses, rent, advertising expenses and outsourcing costs increased in line with the expansion of large stores. Operating profit, meanwhile, rose only 1.6% year on year. - 2026-04-13WorsenedEarnings
「Selling, general and administrative expenses increased due to higher personnel expenses associated with increased hiring for the expansion of large-format stores, higher rent and advertising expenses likewise associated with store openings, and outsourcing expenses for training sales personnel.」
Higher hiring, personnel, land and rental, advertising, and outsourced training costs associated with large-format store expansion continued, creating cost pressure that exceeded operating profit growth. - FY2026-H1WorsenedAnnual report
「Although advertising expenses and other costs decreased through efficiency improvements, selling, general and administrative expenses increased year on year as a result of higher rent associated with large-format store openings and higher provisions associated with increased sales from new businesses.」
SG&A increased as higher rent associated with large-store openings and higher provisions accompanying the increase in sales from new businesses outweighed the decline resulting from greater efficiency in advertising expenses and other costs. Operating profit declined 15.8% year on year, intensifying the profit pressure from higher costs. - FY2025Profit growth despite higher SG&A expensesAnnual report
「SG&A increased due to higher personnel expenses associated with increased hiring for large-store expansion, higher rent and advertising expenses also related to store openings, and higher outsourcing costs for training sales personnel.」
Increased hiring associated with large-store expansion, personnel expenses, rent, advertising expenses and outsourcing costs for training sales personnel all increased. Operating profit, meanwhile, rose 23.4% year on year. - FY2025-H1RestatedAnnual report
「SG&A increased due to higher rent and advertising expenses associated with large-store openings, as well as higher personnel expenses resulting from an increase in the number of employees due to increased hiring for the growth strategy.」
Higher rent and advertising expenses associated with large-store openings and higher personnel expenses resulting from new hiring for the growth strategy continue to be cited as drivers of SG&A growth. Operating profit, meanwhile, increased 42.1% year on year. - FY2025-Q1Profit growth despite higher SG&A expensesAnnual report
「Selling, general and administrative expenses increased due to higher advertising expenses associated with large-format store openings, an increase in the number of employees and related personnel expenses resulting from increased hiring for the growth strategy, and higher hiring costs and other expenses.」
Although SG&A, including advertising expenses, personnel expenses and recruitment costs, increased, operating profit rose 60.5% year on year to ¥4,449 million. Higher costs and higher operating profit occurred concurrently. - FY2024WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher advertising expenses associated with large-format store openings, an increase in the number of employees and related personnel expenses resulting from increased hiring for the growth strategy, and higher hiring costs and other expenses.」
Consolidated SG&A increased to ¥57,216 million, and operating profit declined 13.7% from the previous fiscal year. The profit pressure from higher costs was also evident in the full-year results. - FY2024-Q3WorsenedAnnual report
「Consolidated SG&A increased year on year. SG&A at the parent company also increased year on year. The main factors were higher personnel expenses and recruitment-related commissions due to an increase in fixed-term employees in preparation for large-store openings in the second half and the next fiscal year, higher advertising expenses for sales promotion, and higher rent due to the increase in large stores. Based on the trends in gross profit and SG&A, consolidated operating profit declined by ¥3,286 million from the same period of the previous fiscal year.」
Consolidated SG&A increased year on year, with personnel expenses, recruitment commissions, advertising expenses and rent associated with the increase in large stores serving as the main drivers. As a result, operating profit declined by ¥3,286 million year on year, intensifying the profit pressure from higher costs. - FY2024-Q2RestatedAnnual report
「Consolidated SG&A declined year on year. The main factor was the impact of the Australian subsidiary being excluded from the scope of consolidation following the transfer of its shares. SG&A at the parent company, meanwhile, increased year on year. The main factors were higher personnel expenses resulting from increased incentives, higher rent due to the head-office relocation and an increase in large stores, and higher personnel expenses and recruitment-related commissions due to an increase in fixed-term employees in preparation for large-store openings in the second half.」
On a consolidated basis, SG&A declined due to the Australian subsidiary being excluded from the scope of consolidation, while at the parent company, costs related to incentives, the increase in large stores, the head-office relocation and preparation for large-store openings in the second half increased. The concurrent decline in costs from deconsolidation and increase in domestic costs continues. - FY2024-Q1Concurrent decline in SG&A from deconsolidation and increase in individual domestic expensesAnnual report
「SG&A declined year on year. The main factor was the impact of the Australian subsidiary being excluded from the scope of consolidation following the transfer of its shares. On an individual-company basis, however, SG&A increased. The main factors were higher personnel expenses and commissions paid, resulting from increased incentives and a rise in fixed-term employees in preparation for large-store openings in the second half. The SG&A-to-sales ratio was maintained at 13.6%, about the same level as in the previous fiscal year.」
On a consolidated basis, SG&A declined due to the exclusion of the Australian subsidiary from the scope of consolidation, while on an individual-company basis, personnel expenses and commissions increased due to higher incentives and more fixed-term employees hired in preparation for large-store openings. The SG&A ratio was 13.6%, about the same as in the previous fiscal year. - FY2023MitigatedAnnual report
「Selling, general and administrative expenses decreased despite the increase in advertising expenses, mainly due to lower rent following the head office relocation and lower personnel expenses resulting from a decrease in the number of employees as new hiring was curtailed.」
SG&A declined from ¥67,528 million in the previous fiscal year to ¥55,865 million. Although advertising expenses increased, lower rent and personnel expenses contributed to the overall reduction in costs. - FY2023-Q3RestatedAnnual report
「Selling, general and administrative expenses decreased despite the increase in advertising expenses, mainly due to lower rent following the head office relocation and lower personnel expenses resulting from a decrease in the number of employees as new hiring was curtailed.」
Although advertising expenses increased, SG&A declined due to lower rent following the head-office relocation and lower personnel expenses resulting from restrained new hiring, among other factors. The profit pressure from higher costs continues to be described as easing. - FY2023-Q2MitigatedAnnual report
「Selling, general and administrative expenses decreased due to lower rent following the head office relocation and lower personnel expenses resulting from a decrease in the number of employees as new hiring was curtailed.」
The profit pressure from higher SG&A continues to be described as easing, due to lower rent following the head-office relocation and lower personnel expenses resulting from restrained new hiring. - FY2023-Q1MitigatedAnnual report
「Selling, general and administrative expenses decreased due to lower rent following the head office relocation and lower personnel expenses resulting from a decrease in the number of employees as new hiring was curtailed.」
SG&A declined due to lower rent following the head-office relocation and lower personnel expenses resulting from restrained new hiring. The profit pressure from higher costs associated with new store openings and other factors was described as easing this time. - FY2022-Q3RestatedAnnual report
「Consolidated SG&A increased due to the rebound from the reclassification of infection-related losses from SG&A to extraordinary losses following the receipt of subsidies in the previous fiscal year, as well as the impact of the weaker yen. Meanwhile, individual advertising expenses declined as online customer acquisition became more efficient, even as retail unit sales reached a record high.」
The increase in SG&A continues to be attributed to the rebound from the reclassification of infection-related losses in the previous fiscal year and the weaker yen. Advertising expenses, meanwhile, declined as online customer acquisition became more efficient. - FY2022-Q2Continued change in the drivers of SG&A growthAnnual report
「Consolidated selling, general and administrative expenses increased due to the reversal of the effect of transferring infection-related losses from selling, general and administrative expenses to extraordinary losses in the previous fiscal year, as well as the impact of the yen's depreciation. Meanwhile, advertising expenses declined through more efficient online customer acquisition, even as retail unit volumes reached a record high.」
SG&A increased due to the rebound from the reclassification of infection-related losses in the previous fiscal year and the weaker yen. Advertising expenses, meanwhile, declined as online customer acquisition became more efficient, changing the composition of the factors driving the increase. - FY2022-Q1Change in factors driving higher SG&A expensesAnnual report
「Consolidated selling, general and administrative expenses increased due to the reversal of the effect of transferring infection-related losses from selling, general and administrative expenses to extraordinary losses in the previous fiscal year, as well as the impact of the yen's depreciation. Meanwhile, advertising expenses declined through more efficient online customer acquisition, even as retail unit volumes reached a record high.」
Selling, general and administrative expenses increased due to the reversal of the effect of transferring infection-related losses in the previous fiscal year and the yen's depreciation. Meanwhile, advertising expenses declined through more efficient online customer acquisition, changing the composition of the factors driving higher costs from the previous focus on new store openings and other factors. - FY2021MitigatedAnnual report
「Selling, general and administrative expenses declined as the company curbed advertising expenses in line with its outlook for sales demand in light of the impact of COVID-19. In addition, the company implemented cost controls for travel and transportation expenses and other costs.」
Selling, general and administrative expenses declined due to restraint in advertising expenses and cost controls for travel and transportation expenses, among other items, easing the previous profit pressure from higher costs. - FY2021-Q3RestatedAnnual report
「Selling, general and administrative expenses declined as the company curbed advertising expenses in line with its outlook for sales demand in light of the impact of COVID-19. In addition, the company implemented cost controls for travel and transportation expenses and other costs.」
Selling, general and administrative expenses have continued to decline due to restraint in advertising expenses and cost controls for travel and transportation expenses, among other items. - FY2021-Q2MitigatedAnnual report
「Selling, general and administrative expenses declined as the company curbed advertising expenses in line with its outlook for sales demand in light of the impact of COVID-19. In addition, the company implemented cost controls for travel and transportation expenses and other costs.」
Selling, general and administrative expenses fell from ¥32,173 million in the same period of the previous year to ¥29,910 million due to restraint in advertising expenses and cost controls for travel and transportation expenses, among other items. - FY2021-Q1MitigatedAnnual report
「Selling, general and administrative expenses declined as a result of cost controls, including reductions in advertising expenses.」
The explanation changed from continued increases in costs associated with new store openings and other factors to a decrease in selling, general and administrative expenses due to reductions in advertising expenses and other measures. - FY2020Substantial growth in operating income despite higher costsAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Although selling, general and administrative expenses associated with new store openings continued to increase, operating income rose 167.3% year on year. The increase in costs and substantial growth in operating income were reported simultaneously. - FY2020-Q3RestatedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Selling, general and administrative expenses associated with new store openings continued to increase. Meanwhile, operating income for the first three quarters of the fiscal year rose 172.6% year on year. - FY2020-Q2RestatedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Selling, general and administrative expenses associated with new store openings continued to increase, while operating income for the first half of the fiscal year rose 937.3% year on year. The coexistence of higher costs and growth in operating income was confirmed. - FY2020-Q1Operating profit growth despite higher expensesAnnual report
「Selling, general and administrative expenses increased because store operating expenses associated with new store openings and personnel expenses, primarily for graduate hiring, were incurred ahead of schedule.」
Store operating expenses associated with new store openings and personnel expenses, mainly for new graduate hires, increased, but operating income rose 298.6% year on year. The increase in costs and growth in operating income were reported simultaneously. - FY2019-Q3WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Selling, general and administrative expenses associated with new store openings continued to increase, and consolidated operating income fell 45.5% year on year. - FY2019-Q2WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
As store operating expenses and other costs associated with new store openings continued to increase, operating income fell 82.4% year on year. - FY2019-Q1WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors. As a result, for the first quarter of the fiscal year, net sales were ¥71,411 million, up 0.4% year on year, while operating income was ¥378 million, down 69.5%.」
As selling, general and administrative expenses associated with new store openings continued to increase, operating income fell 69.5% year on year. - FY2018RestatedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Selling, general and administrative expenses associated with new store openings continued to increase. Meanwhile, full-year operating income rose 50.7% year on year. - FY2018-Q3RestatedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors.」
Selling, general and administrative expenses, including store operating expenses associated with new store openings, continued to increase. Meanwhile, operating income rose 29.4% year on year. - FY2018-Q2Operating profit growth despite higher expensesAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with new store openings, among other factors. As a result, for the first half of the fiscal year, net sales were ¥135,468 million, up 9.0% year on year; operating income was ¥2,528 million, up 16.4%; ordinary income was ¥2,032 million, up 0.6%; and quarterly net income attributable to owners of the parent was ¥1,121 million, up 1.8%.」
Although selling, general and administrative expenses associated with new store openings continued to increase, operating income rose 16.4% year on year. The period saw an increase in operating income, compared with the previous situation in which higher costs and lower earnings coexisted. - FY2018-Q1RestatedAnnual report
「Selling, general and administrative expenses increased due to higher store operating expenses associated with an increase in retail and exhibition stores, among other factors.」
The increase in selling, general and administrative expenses, including store operating expenses associated with the addition of retail and exhibition stores, has continued. Operating income declined 0.2% year on year. - FY2017RestatedAnnual report
「Selling, general and administrative expenses increased due to higher advertising expenses described above, higher personnel expenses associated with an increase in hiring, higher store operating expenses associated with an increase in exhibition and retail stores, and expenses related to the rollout of new services.」
Higher advertising expenses, personnel expenses, store operating expenses for retail and exhibition stores, and new-service rollout costs, among other items, were cited as factors behind the annual increase in selling, general and administrative expenses. - FY2017-Q3RestatedAnnual report
「In the domestic business, net sales were ¥157,796 million, up 10.5% year on year, and segment profit (operating income) was ¥4,342 million, down 33.3%. Although sales increased as retail unit volumes rose, earnings declined because the increase in selling, general and administrative expenses could not be offset amid the continued weakness in the new-car market.」
The increase in advertising expenses, personnel expenses associated with increased hiring, store operating expenses and new-service rollout costs, among other items, could not be offset by the sales growth from higher retail unit volumes, resulting in lower earnings. The increase in costs and decline in earnings actually occurred, with operating income down 33.3% year on year. - FY2017-Q2WorsenedAnnual report
「In the domestic business, net sales were ¥101,092 million, up 7.4% year on year, and segment profit (operating income) was ¥2,297 million, down 43.6%. Although sales increased as retail unit volumes rose, earnings declined because the increase in selling, general and administrative expenses could not be offset amid the continued weakness in the new-car market.」
The increase in selling, general and administrative expenses could not be offset by the sales growth from higher retail unit volumes, resulting in a 43.6% year-on-year decline in operating income in the domestic business. - FY2017-Q1First statedAnnual report
「Selling, general and administrative expenses increased due to higher advertising expenses, personnel expenses associated with an increase in hiring, and store operating expenses associated with an increase in retail and exhibition stores. As a result, for the first quarter of the fiscal year, net sales were ¥66,192 million, up 31.1% year on year, while operating income was ¥1,245 million, down 38.9%.」
Higher costs related to advertising, hiring and the addition of stores were reported, while operating income fell 38.9% year on year despite the increase in sales.