Decline in furisode visitors and operating loss in the kimono-related business

「出荷時期のずれ等の影響により、売上高は減少したものの、これまでの改革の取り組みが着実に成果を上げており、引き続き、第１、第２四半期の各四半期で営業黒字を達成。」

「The Company also achieved an operating profit for the full fiscal year for the first time since the fiscal year ended March 2021.」

「Operating profit for the interim consolidated accounting period was ¥167 million (compared with an operating loss of ¥391 million in the previous year), ordinary profit was ¥164 million (compared with an ordinary loss of ¥401 million), and interim net profit attributable to owners of the parent was ¥150 million (compared with an interim net loss attributable to owners of the parent of ¥410 million). The Company achieved operating profits in both the first and second quarters for the first time since the fiscal year ended March 2018.」

「Revenue for the fiscal year fell 26.5% year on year to ¥5,161 million. In terms of earnings, from the second half onward the Company promoted a review of its procurement flow and inventory management system.」

「Against this backdrop, the Group reviewed its sales processes and improved its advertising and sales-promotion initiatives to improve store profitability. However, revenue for the interim consolidated accounting period fell 27.1% year on year to ¥2,678 million. In terms of earnings, the Group reviewed its procurement flow and fundamentally revised its cost structure, seeking to reduce and improve the efficiency of overall expenses, including fixed costs. However, because revenue declined as described above, the operating loss was ¥391 million (compared with an operating loss of ¥264 million in the previous year), the ordinary loss was ¥401 million (compared with an ordinary loss of ¥274 million), and the interim net loss attributable to owners of the parent was ¥410 million (compared with an interim net loss attributable to owners of the parent of ¥283 million).」

「As a result, consolidated results for the fiscal year were revenue of ¥7,022 million, down 15.7% year on year, an operating loss of ¥1,039 million (compared with an operating loss of ¥286 million in the previous fiscal year), and an ordinary loss of ¥1,055 million (compared with an ordinary loss of ¥265 million in the previous fiscal year).」

「As a result, consolidated revenue for the cumulative nine-month period of the fiscal year fell 20.2% year on year to ¥5,241 million. In terms of earnings, the Company recorded an operating loss of ¥454 million (compared with operating profit of ¥13 million in the previous year), an ordinary loss of ¥466 million (compared with ordinary profit of ¥22 million), and a quarterly net loss attributable to owners of the parent of ¥479 million (compared with quarterly net profit attributable to owners of the parent of ¥7 million).」

「Orders received in the Kimono Store Operations business fell 22.5% year on year to ¥3,539 million. Revenue, or shipments, fell 16.2% to ¥3,524 million.」

「As a result, the Kimono Store Operations business recorded an operating loss of ¥13 million (compared with operating profit of ¥56 million in the previous fiscal year).」

「As a result, consolidated results for the fiscal year were revenue of ¥8,329 million, down 1.8% year on year, an operating loss of ¥286 million (compared with operating profit of ¥4 million in the previous fiscal year), and an ordinary loss of ¥265 million (compared with ordinary profit of ¥16 million in the previous fiscal year). In addition, the Company recorded ¥197 million in impairment losses on stores as an extraordinary loss, among other items, resulting in a net loss attributable to owners of the parent of ¥468 million (compared with a net loss attributable to owners of the parent of ¥185 million in the previous fiscal year).」

「As a result, operating profit in the Kimono Store Operations business increased 10.5% year on year to ¥478 million.」

「As a result, consolidated sales for the cumulative second-quarter period increased 12.3% year on year to ¥4,338 million. In terms of profitability, the operating loss was ¥56 million, compared with an operating loss of ¥234 million in the previous corresponding period; the ordinary loss was ¥47 million, compared with an ordinary loss of ¥213 million; and the quarterly net loss attributable to owners of the parent was ¥53 million, compared with a quarterly net loss attributable to owners of the parent of ¥223 million. Profitability improved significantly from the cumulative second-quarter period of the previous fiscal year.」

「As a result, consolidated results for the cumulative first-quarter period were sales of ¥1,953 million, up 6.3% year on year; an operating loss of ¥118 million, compared with an operating loss of ¥144 million in the previous corresponding period; an ordinary loss of ¥122 million, compared with an ordinary loss of ¥118 million; and a quarterly net loss attributable to owners of the parent of ¥125 million, compared with a quarterly net loss attributable to owners of the parent of ¥120 million.」

「Sales (shipments) in the Kimono Store Operations business increased 8.3% to ¥8,230 million, including the impact of applying the revenue recognition accounting standard and related standards. In terms of profitability, the gross margin declined 1.0 percentage points from the previous corresponding period to 61.8%, also reflecting that application. SG&A expenses continued to decline through structural reforms, and the Company promoted initiatives to secure sales while reducing advertising expenses as a percentage of sales and lowering the breakeven sales level. Although sales increased as described above, SG&A expenses as a percentage of sales remained roughly unchanged from the previous corresponding period, partly because ¥376 million in costs incurred during the temporary closure period had been recognized as extraordinary losses in the previous corresponding period. As a result, operating profit in the Kimono Store Operations business declined 4.6% year on year to ¥598 million.」

「Furisode sales and rentals struggled to attract customers during the summer peak season because the period under the state of emergency was prolonged and the effects of shifting customer acquisition to digital channels had not been fully realized. However, order intake increased 3.2% year on year due to an increase in store visitors generated by promotional campaigns from October onward. Order intake for general kimono and other products targeting existing customers increased 29.1% year on year, as events were actively held while efforts were made to prevent the spread of infection, and remained firm.」

「In terms of profitability, the gross margin improved 0.4 percentage points from the previous corresponding period to 62.7%, after taking into account the application of the revenue recognition accounting standard and related standards. SG&A expenses continued to reflect structural reforms under the medium-term plan, and the Company was proceeding with changes to its operating structure to secure sales while reducing advertising expenses as a percentage of sales. Although sales increased as described above, the ratio of SG&A expenses to sales increased by 1.7 percentage points, partly because costs incurred during the temporary closure period, such as personnel expenses, store rent and event cancellation costs, had been recognized as extraordinary losses in the previous corresponding period. As a result, operating profit in the Kimono Store Operations business declined 20.4% year on year to ¥88 million.」

「As a result, the Kimono Store Operations business reported operating profit of ¥11 million, compared with an operating loss of ¥6 million in the previous corresponding period.」

「As a result, the kimono-related business reported an operating loss of ¥139 million, compared with an operating loss of ¥616 million in the previous corresponding period.」

「As a result, the kimono-related business reported operating profit of ¥8 million, compared with an operating loss of ¥204 million in the previous corresponding period.」

「As a result, order intake in the kimono-related business declined 46.2% year on year to ¥3,078 million. Sales (shipments) declined 45.5% to ¥3,015 million. The gross margin was 61.8%, roughly unchanged from the previous corresponding period. The Company worked to reduce expenses overall, including by curbing advertising and promotional expenses, and recognized costs incurred during the temporary closure period, such as personnel expenses, store rent and event cancellation costs, as extraordinary losses. Consequently, total SG&A expenses declined by ¥1,441 million, but because sales declined as described above, SG&A expenses as a percentage of sales increased by 6.1 percentage points. As a result, the kimono-related business reported an operating loss of ¥268 million, compared with an operating loss of ¥158 million in the previous corresponding period.」

「For furisode sales and rental, order intake declined 60.1% year on year due to temporary store closures to prevent the spread of COVID-19.」

「As a result, order intake in the kimono-related business increased 12.1% year on year to ¥9,930 million. Sales (shipments) increased 15.0% to ¥10,186 million. In terms of profitability, the gross margin declined 0.7 percentage points from the previous corresponding period to 61.8%. Although advertising expenses increased as advertising promotions were strengthened, the resulting increase in sales improved SG&A expenses as a percentage of sales by 8.2 percentage points year on year. However, sales in the fourth quarter remained sluggish due to the impact of the spread of COVID-19, and the kimono-related business reported an operating loss of ¥616 million, compared with an operating loss of ¥1,199 million in the previous corresponding period.」

「As a result, order intake in the kimono-related business increased 17.5% year on year to ¥7,809 million. Sales (shipments) increased 18.5% to ¥8,165 million. In terms of profitability, the gross margin declined 0.6 percentage points from the previous corresponding period to 61.9%. Selling, general and administrative expenses increased to some extent due mainly to upfront investment expenses, including TV commercial broadcasting, aimed at securing orders from January onward. However, because sales increased as described above, SG&A expenses as a percentage of sales improved by 8.0 percentage points. As a result, the kimono-related business reported an operating loss of ¥204 million, compared with an operating loss of ¥682 million in the previous corresponding period.」

「As a result, the kimono-related business reported an operating loss of ¥158 million, compared with an operating loss of ¥4.44 million in the previous corresponding period.」

「For furisode sales and rental, we improved advertising promotions to recover customer visits, which raised the closing rate and average selling price, but customer visits remained sluggish, resulting in a 0.5% year-on-year decrease in order intake.」

「For furisode sales and rental, we strengthened advertising promotions to recover customer visits, but customer visits declined and the closing rate and average selling price also fell, resulting in a 17.1% year-on-year decrease in order intake.」

「For furisode sales and rental, we strengthened advertising promotions to recover customer visits, but customer visits remained at roughly the same level as in the previous year, while the closing rate and average selling price also declined, resulting in an 11.1% year-on-year decrease in order intake.」

「As a result, the kimono-related business reported an operating loss of ¥159 million, compared with operating profit of ¥61 million in the previous corresponding period.」

「For furisode sales and rental, the closing rate increased, but customer visits declined, resulting in a 14.2% year-on-year decrease in order intake.」

「For furisode sales and rental, the closing rate increased, but customer visits declined, resulting in a 12.1% year-on-year decrease in order intake.」

「For furisode sales and rental, the closing rate increased, but customer visits declined, resulting in an 18.3% year-on-year decrease in order intake.」

「For furisode sales and rental, the closing rate increased, but customer visits declined, resulting in a 20.9% year-on-year decrease in order intake.」

「For furisode sales and rental, the average selling price declined, but order intake increased 6.2% year on year due to an increase in customer visits.」

「For furisode sales and rental, the closing rate and average selling price declined, but order intake increased 1.2% year on year due to an increase in customer visits.」

「For furisode sales, order intake increased 1.4% year on year. As a result, total order intake in the kimono-related business increased 1.2% year on year to ¥6,466 million. Gross profit increased 4.4% year on year to ¥4,267 million.」

「For furisode sales, customer visits have recovered since May, and order intake increased 11.9% year on year.」

「For furisode sales, order intake declined 16.4% year on year, mainly due to a decrease in the number of store visitors.」