Creation of new businesses and expansion of customer services around traditional Japanese clothing

「In the photo-related business, the Company closed all standalone Kurane Photo Studio locations and shifted to an operating structure in which photography studios are located within kimono stores. …In the online store business, traffic to the Company's website increased due to improvements in website operations, …and total sales rose 14.8% year on year.」

「In the photo-related business, the Company closed Kurane Photo Studio and shifted to an operating model in which studios are located within kimono stores, while continuing to strengthen collaboration with those stores. In the online store business, traffic to the Company's website continued to increase, partly due to stronger SEO initiatives, and sales of furisode products and rentals performed well.」

「The photo studio, e-commerce, nail salon and online kimono dressing class businesses, all launched as new businesses from 2021, each faced certain earnings-related challenges. From the perspective of selecting and concentrating resources, the Company shifted its policy toward terminating or downsizing these businesses, and terminated the nail salon and online kimono dressing class businesses. In the photo studio business, the Company will close all Kurane Photo Studio locations and shift to an operating model in which studios are located within existing kimono stores.」

「In the photo-related business, the Company operates the Kurane Photo Studio and studios located within kimono stores. The business performed well as a result of continued measures to strengthen collaboration with kimono stores and raise average prices, with sales rising 70.3% year on year. In the online store business, sales rose 20.4% year on year due to higher sales of yukata and related accessories for the summer season, as well as increased inventory to avoid lost sales opportunities.」

「In the photo studio business, sales rose 36.8% year on year due to an increase in customers referred by kimono stores and a review of product prices. On the cost side, the Company also implemented measures including reducing the cost ratio, particularly from the second half of the fiscal year, but these measures did not offset the losses incurred through the first half. In the e-commerce business, the Company has been reviewing its advertising initiatives and overall site operations to improve earnings by attracting customers to its official online store. Although some effects are beginning to emerge, sales have not improved substantially and fell 6.0% year on year. As a result, total sales from Other businesses rose 11.1% year on year to ¥368 million, and the operating loss was ¥40 million, compared with an operating loss of ¥80 million in the same period of the previous year.」

「For Other businesses, the Company pursued measures to strengthen collaboration with kimono stores, review its product mix and raise average prices, mainly in the photo studio and e-commerce businesses. In the photo studio business, the number of customers referred by kimono stores increased, and sales rose 25.2% year on year. Meanwhile, in the e-commerce business, the Company has been reviewing its advertising initiatives and overall site operations to improve earnings by attracting customers to its official online store. Although these measures are beginning to produce some results, they have taken time to have an effect, and sales fell 14.3% year on year. As a result, total sales from Other businesses rose 3.8% year on year to ¥258 million, and the operating loss was ¥48 million, compared with an operating loss of ¥62 million in the same period of the previous year.」

「For Other businesses, the Company pursued measures to strengthen collaboration with kimono stores and raise average prices, mainly in the photo studio and e-commerce businesses. In the photo studio business, the number of customers referred by kimono stores increased, and sales rose 57.1% year on year. Meanwhile, in the e-commerce business, the Company struggled to attract customers to its official online store, and sales fell well below the initial budget. As a result, total sales from Other businesses rose 9.8% year on year to ¥147 million, and the operating loss was ¥50 million, compared with an operating loss of ¥58 million in the same period of the previous year.」

「For Other businesses, the Company has been strengthening collaboration with kimono stores and pursuing measures to raise average prices, mainly in the photo studio and e-commerce businesses. However, these measures have taken time to take hold and have not yet produced sufficient results in the current quarter, with sales falling 12.9% year on year to ¥61 million. On the earnings side, the operating loss was ¥30 million, compared with an operating loss of ¥28 million in the same period of the previous year.」

「For Other businesses, the Company actively pursued sales activities, mainly in the photo studio and e-commerce businesses. In the photo studio business, reciprocal customer referrals with kimono stores did not progress smoothly. In the e-commerce business, sales increased as demand grew for purchasing and renting products during the COVID-19 pandemic, but sales growth lost momentum from the second half of the fiscal year, with sales rising only 18.5% year on year. As a result, sales rose 30.7% year on year to ¥332 million. On the earnings side, the operating loss was ¥80 million, due to upfront investment in each business and costs associated with opening new stores, compared with an operating loss of ¥75 million in the same period of the previous year.」

「In December, the Company renovated its online store, substantially increased the number of products offered and launched rental services through its own store. As a result, sales rose 47.8% year on year to ¥249 million.」

「For Other businesses, the Company worked to expand sales, mainly in the photo studio and e-commerce businesses, and opened 1 new photo studio in July. As a result, sales increased substantially, rising 134.5% year on year to ¥134 million. Meanwhile, the operating loss was ¥58 million, due to the seasonal decline in demand for furisode photography at the photo studio business, upfront investment in new businesses, capital expenditure and costs associated with opening new stores, compared with an operating loss of ¥54 million in the same period of the previous year.」

「For Other businesses, the Company worked to expand sales, mainly in the photo studio and e-commerce businesses. Sales rose 219.9% year on year to ¥70 million. Meanwhile, the operating loss was ¥28 million, due to the seasonal decline in demand for furisode photography at the photo studio business, upfront investment in new businesses, capital expenditure and costs associated with opening new stores, compared with an operating loss of ¥16 million in the same period of the previous year.」

「For Other businesses, the Company worked to expand sales, mainly in the photo studio and e-commerce businesses. In particular, e-commerce sales rose 326.3% as demand increased for purchasing and renting products during the COVID-19 pandemic. As a result, sales rose 263.5% year on year to ¥254 million. Meanwhile, an operating loss of ¥75 million was recorded, due to upfront investment in new businesses, capital expenditure and costs associated with opening new stores, compared with operating income of ¥11 million in the same period of the previous year.」

「For Other businesses, the Company worked to expand sales, mainly in the photo studio and e-commerce businesses. Sales rose 268.2% year on year to ¥168 million. Meanwhile, partly due to upfront investment in new businesses, the operating loss was ¥61 million, compared with operating income of ¥7 million in the same period of the previous year.」

「For Other businesses, the Company worked to expand sales, mainly in the photo studio and e-commerce businesses. Sales rose 221.4% year on year to ¥57 million. Meanwhile, partly due to upfront investment in new businesses, the operating loss was ¥54 million, compared with operating income of ¥2 million in the same period of the previous year.」

「In Other businesses, the Company focused on expanding revenue, primarily through its photography studio and e-commerce businesses. Revenue rose 261.5% year on year to ¥21 million. However, partly because of upfront investment in new businesses, the operating loss was ¥16 million, compared with operating income of ¥2 million in the same period of the previous year.」

「For medium-term growth, in addition to its existing traditional Japanese clothing business, the Company will select categories, services and merchandise aligned with the themes of its management philosophy and work to commercialize them. It will actively pursue alliances, provide customers with new services and work to acquire new customers.」