All-store sales falling short of plan due to adverse weather and other factors

「Regarding sales during the fiscal year, the Company sought to attract customers through its 30th anniversary campaign and benefits for mobile members. However, weather conditions had a significant impact on sales, including weaker-than-planned sales of seasonal products due to low temperatures and a prolonged rainy season in July, the closure of some stores due to typhoon damage, and lacklustre year-end and New Year sales, the year's biggest sales period, due to a record warm winter.」

「Meanwhile, weather conditions had a significant impact on sales, including low temperatures and a prolonged rainy season in July and continued high temperatures from September onward. Average spend per customer declined due to the disposal of slow-moving inventory and markdowns resulting from the delayed launch of seasonal products.」

「Meanwhile, average spend per customer declined due to markdown sales associated with the delayed selling season for summer merchandise caused by the prolonged rainy season, as well as the disposal of slow-moving inventory.」

「Record adverse weather also had an impact.」

「However, sales for the cumulative third quarter declined 10.3% year on year at existing stores, while existing-store customer traffic declined 6.1% and existing-store average spend per customer declined 4.5%. Average spend per customer fell due to the weaker promotional effect of newspaper advertising, lower customer traffic resulting from record adverse weather, lower unit prices, and a decline in the number of items purchased per customer.」

「However, net sales for the cumulative second quarter declined 9.5% year on year at existing stores, while existing-store average spend per customer declined 4.1% and existing-store customer traffic declined 5.6%. The decreases reflected the weaker promotional effect of newspaper insert advertising, lower customer traffic due to record adverse weather, insufficient proposals for national-brand (NB) products, the popularity of lower-priced products, and a decline in average spend per customer as the number of items purchased per customer failed to increase.」

「The apparel handled by the Company is highly seasonal and may be affected by weather conditions such as cool summers and warm winters. Sales are also affected by fashion trends, changes in customer preferences and competitors' pricing policies. The Company prepares its merchandise plans and purchases after taking these factors into account, but changes in demand trends may affect its business performance.」

「In terms of products, men's and women's apparel fell below the previous year's sales due to the impact of adverse weather.」

「In terms of products, men's and women's apparel, particularly tops, fell below the previous year's sales due to the impact of adverse weather. As a result, the Company was unable to achieve the sales planned at the beginning of the fiscal year.」

「In addition to sluggish sales of autumn merchandise due to high temperatures and adverse weather in August and September, a sharp decline in apparel consumer spending in November and December resulted in same-store sales for the fiscal year declining 3.8% year on year and company-wide sales declining 6.2% year on year.」

「Although the measures described above produced some results, same-store sales for the cumulative third quarter declined 2.0% year on year and company-wide sales declined 4.9% year on year due to adverse weather in August and September and relatively high temperatures.」

「Company-wide sales were on plan during the 5 months through July, but fell significantly short of plan due to the impact of adverse weather and other factors in August, declining 3.5% year on year.」