Margin decline due to changes in product mix
First written in FY2020-Q1. 11 of 17 entries say "Worsened", first in FY2020-Q2. Latest entry: 2026-10-14.
Sk Japan moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- 2026-10-14WorsenedEarnings
「The profit margin declined due to foreign-exchange movements, the increase in food, confectionery and other sourced products in the sales mix, and higher packing and transportation expenses, among other factors.」
The factors contributing to the decline in the profit margin, including foreign-exchange movements, an increase in sourced products and higher packing and transportation expenses, were also reported for the interim period. - FY2027-H1WorsenedAnnual report
「Although margins declined due to foreign exchange fluctuations, an increase in purchased food and confectionery products in the sales mix, higher packaging and shipping costs, and other factors」
Foreign exchange fluctuations, a higher proportion of purchased products in the sales mix, and higher packaging and shipping costs continued to be reflected in the results as factors contributing to the decline in margins in the character entertainment business. - 2026-07-14WorsenedEarnings
「The profit margin declined due to the increase in sourced products in the sales mix and the impact of foreign-exchange movements, among other factors.」
The decline in the Character and Fancy Goods business's profit margin continued due to the increase in sourced products and foreign-exchange movements, among other factors. - FY2026WorsenedAnnual report
「Inventory valuation losses 26,447 37,923」
Inventory valuation losses increased from ¥26.447 million in the previous fiscal year to ¥37.923 million, and the impact of deteriorating profitability due to changes in product mix, demand and other factors expanded. - FY2025WorsenedAnnual report
「The Character and Fancy Goods business exceeded the previous period’s results in net sales, which rose 8.0% to ¥3,564 million, as sales of standard characters and character products that had gained popularity overseas remained strong due to active business at business-partner stores driven by inbound demand and other factors. However, operating profit fell 10.7% to ¥202 million and was below the previous period’s result, owing to a decline in the profit margin resulting from changes in the product mix and other factors.」
Despite higher revenue resulting from strong sales, margins declined due to changes in product mix and other factors, causing operating profit to fall 10.7% year on year. - FY2025-H1WorsenedAnnual report
「The Character Entertainment business exceeded the results for the same period of the previous year, with revenue of ¥4,528 million, up 26.1% year on year, as orders for standard character products remained firm amid continued strength in the prize game market, including crane games. However, operating profit fell 4.4% year on year to ¥446 million, as profit margins declined due in part to higher procurement costs resulting from exchange-rate fluctuations and other factors.」
Although orders for standard character products remained firm and revenue increased, higher procurement costs due to foreign exchange fluctuations and other factors reduced margins, causing operating profit to decline 4.4% year on year. - FY2024WorsenedAnnual report
「Inventory valuation losses 5,686 22,334」
Inventory valuation losses increased from ¥5.686 million in the previous year to ¥22.334 million, and the impact of deteriorating profitability due to changes in product mix, demand and other factors expanded. - FY2023WorsenedAnnual report
「Sales of standard character products such as "Tabekko Doubutsu," "Kirby" and "Pokémon," as well as bath balls containing figures, remained strong, resulting in revenue of ¥2.519 billion, up 7.6% year on year and above the previous fiscal year's result. However, operating profit was held to ¥72 million, down 42.5% year on year, as sharp foreign exchange fluctuations and other factors drove up procurement costs and forced margins lower.」
Sales of standard character products and bath balls were strong, but higher procurement costs caused by foreign exchange fluctuations and other factors reduced margins, resulting in a significant decline in operating profit. - FY2023-Q1WorsenedAnnual report
「Margins also declined as a result of higher raw material, transportation and other costs, bringing revenue to ¥517 million, down 2.6% year on year, and operating profit to ¥12 million, down 51.7% year on year, both below the year-earlier results.」
In the Character and Fancy Goods business, higher raw material, transportation and other costs emerged as additional factors behind the margin decline, and operating profit fell 51.7% year on year. - FY2022MitigatedAnnual report
「As the sales mix of original products increased and margins improved, operating profit was ¥125 million, up 215.8% year on year.」
The increase in the mix of original products and the improvement in margins eased the risk of margin deterioration due to changes in product mix. - FY2022-Q3MitigatedAnnual report
「However, as the sales mix of original products increased and the profit margin improved, operating profit was ¥95 million, up 70.8% year on year.」
The increase in the sales mix of original products improved margins and eased the risk of margin deterioration due to product mix. - FY2022-Q2MitigatedAnnual report
「As the sales mix of original products increased and margins improved, operating profit was ¥50 million, up 79.7% year on year.」
The increase in the sales mix of original products improved margins and eased the risk of margin deterioration due to product mix. - FY2022-Q1MitigatedAnnual report
「As the sales mix of original products increased and margins improved, operating profit was ¥25 million, compared with an operating loss of ¥5 million in the same quarter of the previous year.」
In the Character and Fancy Goods business, the increase in the sales mix of original products eased the margin decline attributable to product mix, and the business moved from an operating loss to operating profit. - FY2021WorsenedAnnual report
「Operating profit was held to ¥39 million, down 31.5% year on year, as margins declined due to changes in product mix.」
Margins in the Character and Fancy Goods business continued to decline due to changes in product mix, resulting in a 31.5% year-on-year decrease in operating profit. - FY2021-Q1RestatedAnnual report
「Profitability was affected by lower margins resulting from changes in product mix, resulting in an operating loss of ¥5 million, compared with an operating loss of ¥17 million in the same quarter of the previous year.」
In the Character and Fancy Goods business, the decline in margins due to changes in product mix continued to be identified as a factor contributing to the operating loss. - FY2020-Q2WorsenedAnnual report
「In the Character Entertainment business, evergreen characters such as Kirby, Doraemon, Shakurel Planet, and Chuken Mochishiba remained solid. However, changes in the product mix led to lower margins and other effects, resulting in sales of ¥2,271 million, down 5.3% year on year, and operating profit of ¥268 million, down 29.3%.」
The decline in margins due to changes in product mix continued through the cumulative second quarter, with revenue and operating profit in the Character Entertainment business falling below the year-earlier period. - FY2020-Q1First statedAnnual report
「In the Character Entertainment business, evergreen characters such as Kirby, Doraemon, Shakurel Planet, and Chuken Mochishiba maintained a certain level of sales. However, changes in the product mix led to lower margins and other effects, resulting in sales of ¥1,056 million, down 2.2% year on year, and operating profit of ¥97 million, down 37.9%.」
The decline in margins due to changes in product mix was explicitly identified for the first time as an actual factor behind the decreases in revenue and profit.