Decline in Gross Profit Margin Due to Increased Discount Sales
First written in FY2017-Q1. 16 of 30 entries say "Mitigated", first in FY2017-Q3. Latest entry: FY2026.
Gyet moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 5 of 36 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Due to inventory clearance following store closures, revisions to product valuation standards and crypto-asset valuation losses, the gross margin fell by 9.9 percentage points to 37.6%.」
The gross margin fell by 9.9 percentage points from the previous fiscal year to 37.6% due to inventory clearance, revisions to product valuation standards and crypto-asset valuation losses. - 2026-04-14WorsenedRevision of earnings forecasts
「Operating income declined due to a lower gross profit margin resulting from discount sales intended to accelerate inventory clearance, as well as the impact of accounting treatment following a review of the items included in cost of sales. In addition, gross profit declined due to the impact of revising estimates relating to inventory valuation, resulting in a ¥344 million variance between operating income in the previous forecast and the actual result.」
The decline in the gross profit margin resulting from discount sales to clear inventory, accounting treatment and revised inventory valuation estimates was reflected in the actual results. - FY2025WorsenedAnnual report
「Due to the impact of inventory clearance through store-closing sales and markdown sales to accelerate the sale of carryover products, the gross margin fell by 0.9 percentage points to 47.5%.」
The gross margin fell by 0.9 percentage points from the previous fiscal year to 47.5% due to store-closing sales, the accelerated sale of carryover products and markdown sales. - FY2025-Q1RestatedAnnual report
「The company will limit unnecessary selling-price changes and seek to improve the gross margin.」
The company continues its policy of seeking to improve the gross margin by limiting selling-price changes, but this filing does not explicitly state that the gross margin improved. - FY2024MitigatedAnnual report
「Although purchase prices rose due to soaring energy and raw-material prices and the yen's sustained weakness, the gross margin increased by 0.4 percentage points to 48.4% through limits on selling-price changes.」
Even amid rising purchase prices, the gross margin improved by 0.4 percentage points from the previous year to 48.4% through limits on selling-price changes. - FY2024-Q3MitigatedAnnual report
「The company sought to improve the gross margin by tightly managing inventory to limit excessive selling-price changes. However, sales of fall and winter products were weak, and the gross margin for the cumulative third quarter remained limited to an increase of 0.2 percentage points year on year.」
The gross margin improved by 0.2 percentage points year on year through inventory management that limited excessive selling-price changes. However, the improvement was limited by weak sales of fall and winter products. - FY2024-Q2MitigatedAnnual report
「The company sought to improve the gross margin by tightly managing purchasing and inventory plans to reduce excessive selling-price changes and actively developing functional products under its private brand. However, due to the impact of the going-out-of-business sales, the gross margin increased only 0.1 percentage points year on year.」
The company advanced gross-margin improvement through purchasing and inventory management and the development of functional private-brand products. The gross margin increased by 0.1 percentage points year on year, but the improvement was limited by the impact of the going-out-of-business sales. - FY2024-Q1WorsenedAnnual report
「In terms of profitability, gross profit fell 8.7% year on year as revenue and the gross margin declined.」
The decline in the gross margin was explicitly stated, and gross profit fell 8.7% year on year. Conditions worsened with respect to the risk of a lower gross margin due to discounting and purchase costs. - FY2023MitigatedAnnual report
「Although purchase costs rose due to sharp currency fluctuations and higher raw-material and energy prices, the gross margin increased by 0.1 percentage points to 48.0%.」
Even amid rising purchase costs due to higher foreign-exchange, raw-material and energy prices, the gross margin increased by 0.1 percentage points from the previous year to 48.0%. - FY2022WorsenedAnnual report
「The gross margin also fell by 0.9 percentage points to 47.9%, mainly due to lower revenue and higher purchase costs resulting from rising raw-material costs and overseas labor costs.」
The gross margin fell by 0.9 percentage points to 47.9%, with higher purchase costs due to soaring raw-material costs and overseas labor costs cited as a factor. - FY2022-Q1MitigatedAnnual report
「In terms of profitability, gross profit reached 122.1% of the level in the same quarter of the previous year, reflecting the recovery in revenue and the improvement in the gross margin.」
It states that gross profit reached 122.1% of the level in the same period of the previous year due to the recovery in revenue and the improvement in the gross margin. - FY2021MitigatedAnnual report
「The gross margin increased by 1.7 percentage points year on year through purchasing controls enabled by shorter product-supply lead times and limits on selling-price changes.」
The gross margin improved by 1.7 percentage points year on year through shorter product-supply lead times, purchasing controls and limits on selling-price changes. - FY2021-Q3MitigatedAnnual report
「Gross profit fell sharply as revenue remained low. However, the gross margin increased by 2.4 percentage points year on year through purchasing controls enabled by shorter product-supply lead times and limits on selling-price changes.」
Although revenue and gross profit declined, the gross margin improved by 2.4 percentage points year on year through purchasing controls enabled by shorter product-supply lead times and limits on selling-price changes. - FY2021-Q2MitigatedAnnual report
「In terms of profitability, gross profit fell sharply as revenue remained low. However, the gross margin improved by 2.0 percentage points from the previous quarter through purchasing controls enabled by shorter product-supply lead times and by limiting selling-price changes through reduced flyer distribution.」
Although revenue and gross profit declined, the gross margin improved by 2.0 percentage points year on year through purchasing controls and limits on selling-price changes. - FY2021-Q1MitigatedAnnual report
「In terms of profitability, gross profit declined substantially in line with the sharp decline in revenue, but the gross margin remained nearly at the previous year’s level.」
Although gross profit declined substantially, the gross margin remained nearly at the previous year’s level, and the decline in margin was contained, according to the disclosure. - FY2020WorsenedAnnual report
「The gross margin also declined 1.4 percentage points to 47.1%. Factors included the early disposal of slow-moving inventory, increased markdown sales of seasonal products due to adverse weather, and the recognition of an ¥594 million inventory valuation loss in cost of sales for the full year.」
The gross margin declined 1.4 percentage points from the previous year due to the disposal of slow-moving inventory, markdown sales of seasonal products, and the ¥594 million inventory valuation loss. - FY2020-Q2WorsenedAnnual report
「In terms of profitability, as part of product reforms, the Company actively moved to sell through inventory by disposing of slow-moving inventory early and applying appropriate markdowns to avoid retaining new slow-moving inventory, resulting in a gross margin below the previous year.」
States that disposal of slow-moving inventory and aggressive markdown sales reduced the gross margin below the previous year. - FY2020-Q1WorsenedAnnual report
「In terms of profitability, as part of product reforms, the Company actively moved to sell through inventory by disposing of slow-moving inventory early and applying appropriate markdowns to avoid retaining new slow-moving inventory, resulting in a gross margin below the previous year.」
Disposal of slow-moving inventory and aggressive markdown sales reduced the gross margin below the previous year. The decline in margin due to markdown sales has continued. - FY2019WorsenedAnnual report
「The gross margin declined 3.2 percentage points to 48.5%. Despite an improvement in the initial markup rate, factors including the recognition of an ¥888 million inventory valuation loss in cost of sales for the full year and increased markdown sales of seasonal products due to adverse weather affected the result.」
Although the initial markup rate improved, the gross margin declined 3.2 percentage points year on year due to the ¥888 million inventory valuation loss and markdown sales of seasonal products, magnifying the decline in margin from markdowns and valuation losses. - FY2019-Q3WorsenedAnnual report
「In terms of profitability, although product sourcing reforms progressed, the delayed launch of seasonal products due to weather conditions led to markdown sales exceeding the initial plan, leaving the gross margin nearly flat year on year.」
Although product sourcing reforms progressed, markdown sales above plan left the gross margin, which had been improving year on year, nearly flat. - FY2019-Q2MitigatedAnnual report
「In terms of profitability, the gross margin improved 0.6 percentage points year on year as product sourcing reforms progressed, but gross profit was substantially below the previous year due to the decline in revenue.」
Product sourcing reforms improved the gross margin by 0.6 percentage points year on year, while gross profit was substantially lower due to the decline in revenue. - FY2019-Q1RestatedAnnual report
「In terms of profitability, the gross margin remained at approximately the previous year’s level as product sourcing reforms progressed, but gross profit was substantially below the previous year due to the decline in revenue.」
Product sourcing reforms kept the gross margin at approximately the previous year’s level, but gross profit was substantially lower due to the decline in revenue. - FY2018MitigatedAnnual report
「The Company also achieved lower prices and a higher gross margin by reviewing production locations. As product sourcing reforms progressed, the initial markup rate improved, and the gross margin rose 3.1 percentage points year on year.」
The initial markup rate improved through a review of production locations and product sourcing reforms, and the gross margin rose 3.1 percentage points year on year. - FY2018-Q3MitigatedAnnual report
「In terms of profitability, the initial markup rate improved as product sourcing reforms progressed, and the gross margin rose 3.9 percentage points year on year.」
The initial markup rate improved as a result of product sourcing reforms, and the gross margin rose 3.9 percentage points year on year. - FY2018-Q2MitigatedAnnual report
「In terms of profitability, the initial markup rate improved as product sourcing reforms progressed, and the gross margin increased 5.2 percentage points year on year.」
The initial markup rate improved as a result of product sourcing reforms, raising the gross margin 5.2 percentage points year on year and helping address the risk of a lower gross margin. - FY2018-Q1MitigatedAnnual report
「In terms of profitability, the initial markup rate improved as product sourcing reforms progressed, and the gross margin rose 5.4 percentage points year on year.」
The initial markup rate improved as product sourcing reforms progressed, and the gross margin rose 5.4 percentage points year on year. - FY2017MitigatedAnnual report
「In terms of profitability, the Company shifted its advertising strategy to prioritize the gross margin from the third quarter, resulting in a 2.6-percentage-point year-on-year increase in the gross margin.」
The shift in advertising strategy to prioritize gross margin continued, and the full-year gross margin increased 2.6 percentage points year on year. - FY2017-Q3MitigatedAnnual report
「In terms of profitability, the Company shifted its advertising strategy to prioritize the gross margin from the third quarter, resulting in a 1.2-percentage-point year-on-year increase in the gross margin. On a third-quarter-only basis, the gross margin improved 4.0 percentage points year on year, raising the gross margin for the cumulative third quarter.」
After a period of continued gross margin declines due to markdown sales and other factors, the Company shifted its advertising strategy to prioritize gross margin, improving the cumulative gross margin by 1.2 percentage points year on year. - FY2017-Q2RestatedAnnual report
「In terms of profitability, the gross margin declined 0.2 percentage points year on year due in part to increased markdown sales to gain a competitive advantage.」
The gross margin declined year on year due in part to increased markdown sales. - FY2017-Q1First statedAnnual report
「In terms of profitability, the gross margin declined 0.4 percentage points year on year due to increased markdown sales to gain a competitive advantage.」
Reported increased markdown sales to gain a competitive advantage and a 0.4-percentage-point decline in the gross margin.