Merchandising Optimization through Brand Portfolio Restructuring

「We will pursue business development in the lifestyle and premium-price sectors. To create synergies with existing businesses and acquire new customer touchpoints, we resolved to acquire shares in Bijou de M Co., Ltd., which operates the accessories brand “Bijou de M.”」

「As new-format brands, Korean-origin bag brand “OSOI” opened 2 stand-alone brand stores in Japan, the first of their kind in the country, while lifestyle select shop “NICE WEATHER” also opened 3 physical stores.」

「韓国発のバッグブランド「OSOI」では日本国内初のブランド単独実店舗を２店舗オープンしたほか、ライフスタイルセレクトショップ「NICE WEATHER（ナイスウェザー）」も実店舗を３店舗オープンしています。」

「To expand our customer base and address gaps in our range of styles, we are advancing the opening of physical and temporary stores for NICE WEATHER, a lifestyle select shop originating in Korea. OSOI, a Korean bag brand, opened 2 standalone brand stores, the first of their kind in Japan, and has also expanded its presence in the physical stores of our core businesses. Both brands are contributing to the acquisition of new customer groups, including younger customers.」

「We acquired the exclusive domestic distribution rights for Korean bag brand OSOI and began opening a brand site within our online store and shop-in-shop corners at physical stores, while also preparing to open standalone stores.」

「We are advancing brand development and other initiatives in apparel to expand our customer base and address issues relating to product aesthetics. The new women's brands ATTISESSION, targeting younger consumers, and conte, targeting independent women, each opened their first physical stores in September, marking steady progress in our new businesses. In addition, we acquired the exclusive domestic distribution rights for Korean bag brand OSOI and will roll it out as one of our brands from next spring.」

「To improve the gross profit margin, we will control costs, procure appropriate inventory volumes, improve the full-price sell-through rate (*), and improve the gross profit margin of online sales.」

「To expand our customer base, we developed the new women's brand ATTISESSION for younger customers and will begin sales in spring 2024. We are also advancing business development beyond apparel and launched the cosmetics brand UNITED ARROWS BEAUTY in January 2024 to expand the range of products proposed to our existing customer base.」

「To improve the gross profit margin, we controlled inventory procurement, adopted precise pricing incorporating product quality improvements to contain increases in the cost ratio, and strengthened full-price sales. As a result, the gross profit margin for the total business units (*) is trending upward. Consequently, the gross profit margin improved 0.5 percentage points from the same period of the previous year.」

「We are currently revising our merchandising approach, including a review of target customer definitions, toward renewed growth.」

「By accurately communicating the appeal of our products to strengthen full-price sales, we curbed sale sales while maintaining standalone same-store retail and online customer count at 100.8% of the previous fiscal year. Standalone same-store retail and online average spend per customer improved significantly to 110.3% of the previous fiscal year.」

「Under “Impressive Creation,” we are working to increase the full-price sales ratio. We raised the quality per item by reducing the number of product styles, shortened sale periods, and curbed sale sales by carefully reviewing sale items and markdown rates. As a result, the sale sales ratio declined year on year and the full-price sales ratio improved significantly. Consequently, standalone same-store retail and online average spend per customer reached 110.4% of the same period of the previous year.」

「As these measures generated synergies with the sales division's efforts to increase the full-price sales ratio, the full-price sales ratio rose significantly year on year, and same-store retail and online average spend per customer on a standalone basis reached 114.5% of the same period of the previous year.」

「We are improving operations from procurement planning through inventory management and increasing merchandising precision by carefully determining the appropriate number of product styles and conducting detailed inventory analysis.」

「We rolled out the new online-focused brand CITEN and the new label MARW UNITED ARROWS, and developed new labels including the outdoor label koti BEAUTY&YOUTH, the yoga-wear label TO UNITED ARROWS, and the golfwear label UNITED ARROWS GOLF.」

「The company developed new labels such as “TO UNITED ARROWS,” a lifestyle label centered on yoga wear and focused on wellness, and “UNITED ARROWS GOLF,” which offers golfwear combining design and functionality.」

「Gross profit increased 8.4% year on year to ¥24,801 million, and the gross profit margin increased 6.2 percentage points from the same period of the previous year to 49.2%. This was due in part to controlling procurement of spring and summer products and curbing discounting.」

「To achieve the 50.7% consolidated gross profit margin plan, designated as our second key priority, we curbed procurement of spring and summer inventory and optimized inventory levels to control discounting, while seeking to improve the full-price sales ratio year on year.」

「Gross profit declined 31.2% year on year to ¥55,020 million, and the gross profit margin declined 5.6 percentage points from the previous fiscal year to 45.2%. This was due in part to increased discount sales to accelerate the sell-through of spring and summer products.」

「Gross profit declined 31.3% year on year to ¥43,027 million, and the gross profit margin declined 5.7 percentage points from the same period of the previous year to 46.9%. This was due in part to increased discount sales to accelerate the sell-through of spring and summer products.」

「Gross profit declined 40.6% year on year to ¥22,870 million, and the gross profit margin declined 8.7 percentage points from the same period of the previous year to 42.9%. This was due in part to increased discount sales to accelerate the sell-through of spring and summer products.」

「Gross profit declined 53.1% year on year to ¥9,637 million, and the gross profit margin declined 11.3 percentage points from the same period of the previous year to 43.4%. This was due in part to increased discount sales to accelerate the sell-through of spring and summer products.」

「Gross profit declined 2.2% year on year to ¥79,983 million, and the gross profit margin declined 0.6 percentage points from the previous fiscal year to 50.8%. This was due to increased discount sales of autumn and winter products resulting from the unusually warm winter, as well as increased discount sales accompanying lower sales due to the impact of COVID-19.」

「Gross profit increased 0.8% year on year to ¥62,660 million. The gross profit margin declined 0.1 percentage points from the same period of the previous year to 52.6%, due in part to increased discount sales of autumn and winter products resulting from the unusually warm winter.」

「In the trend market, we offered assortments spanning business lines according to store characteristics to meet customer needs and began rolling out a new women's brand. In the mid-trend market, we opened small stores specializing in businesswear and women's apparel.」

「In the trend market, we offered assortments spanning business lines according to the characteristics of each store to meet customer needs. In the mid-trend market, we opened small stores specializing in businesswear and women's apparel.」

「Gross profit for the current consolidated fiscal year increased 2.8% year on year to ¥81,760 million, reflecting a well-balanced product assortment based on our core product policies, optimization of procurement and production volumes, and optimization of the number of product styles. The gross profit margin was 51.4%, broadly unchanged from the previous fiscal year.」

「In the trend market, we carried out renovations and renewals at UNITED ARROWS full-line stores. In the mid-trend market, we opened small stores specializing in businesswear and women's apparel.」

「In the trend market, we carried out renovations and renewals at UNITED ARROWS full-line stores. In the mid-trend market, we opened small Work Trip Outfitters Green Label Relaxing stores specializing in businesswear.」

「To respond to market changes in its existing businesses, the company is undertaking various initiatives. In the Trend market, it aims to improve margins by enhancing quality; in the Mid Trend market, to increase earnings by expanding sales scale; and in the New Trend market, to increase earnings through internal structural reform and measures to expand brand awareness.」

「In addition to advancing these initiatives during the current consolidated fiscal year, the gross profit margin exceeded that of the previous fiscal year by 0.5 percentage points, reflecting reduced discount sales at consolidated subsidiaries and other factors.」

「Regarding the improvement in the gross profit margin, we are increasing the proportion of full-price sales by promoting the adoption throughout the Company of our core product policies, which form the foundation of our product strategy, and setting prices after carefully assessing the balance between price and value. In addition, we will stabilize sales and improve the gross profit margin by strengthening our response to business and formal-occasion demand, which are less susceptible to temperature fluctuations. In the cumulative third quarter of the current consolidated fiscal year, in addition to advancing these initiatives, the gross profit margin exceeded that of the same period of the previous year by 0.1 percentage points, reflecting reduced discount sales at consolidated subsidiaries and other factors.」

「In addition to advancing these initiatives during the cumulative second quarter of the current consolidated fiscal year, the gross profit margin exceeded that of the same period of the previous year by 0.4 percentage points, reflecting a lower procurement cost ratio due in part to foreign exchange effects and reduced discount sales at consolidated subsidiaries.」

「Regarding the improvement in the gross profit margin, we are increasing the proportion of full-price sales by promoting the adoption throughout the Company of our core product policies, which form the foundation of our product strategy, and setting prices after carefully assessing the balance between price and value. In addition, we will stabilize sales and improve the gross profit margin by strengthening our response to business and formal-occasion demand, which are less susceptible to temperature fluctuations.」

「By adopting flexible merchandising operations in response to climate fluctuations, same-store sales began to improve in the second half.」

「In addition to strengthening our product offering by reviewing our core product policies, we began initiatives to optimize merchandising through the restructuring of our Group brand portfolio. In the Green Label Relaxing business, improving the precision of our product planning cycle, which introduces products in fine increments according to temperatures, enabled us to deliver solid results even during the seasonal transition from summer to autumn. We also delivered stable results by strengthening our response to opportunities such as Cool Biz and demand for formal occasions.」

「In addition to strengthening our product offering by reviewing our core product policies, we began initiatives to optimize merchandising through the restructuring of our Group brand portfolio. In the Green Label Relaxing business, we improved the precision of our product planning cycle, introducing products in fine increments according to temperatures, and continued to deliver solid results even during the seasonal transition from summer to autumn.」

「In addition to strengthening product capabilities by reviewing the basic product policy, we began initiatives to optimize merchandising by restructuring the Group’s brand portfolio.」