Company-wide cost reductions and improving the cost-effectiveness of promotional spending

「In addition, partly due to the effects of a series of cost structure reforms, including consolidating and closing unprofitable stores, reviewing advertising and sales promotion expenses appropriately, and optimizing indirect costs, operating profit for the consolidated fiscal year was ¥259 million, compared with an operating loss of ¥734 million in the previous fiscal year.」

「In addition, partly due to the effects of a series of cost structure reforms, including consolidating and closing unprofitable stores, reviewing advertising and sales promotion expenses appropriately, and optimizing indirect costs, operating profit for the interim consolidated accounting period was ¥167 million, compared with an operating loss of ¥391 million in the same period of the previous year.」

「We also established a dedicated project team to reduce SG&A and worked to fundamentally review the cost structure. As a result of reducing and improving the efficiency of expenses overall, including fixed costs, total SG&A decreased 21.0% year on year.」

「In terms of profit, although we reviewed the procurement process and the fundamental cost structure and worked to reduce and improve the efficiency of expenses overall, including fixed costs, the decline in sales, as described above, resulted in an operating loss of ¥391 million, compared with an operating loss of ¥264 million in the same period of the previous year; an ordinary loss of ¥401 million, compared with an ordinary loss of ¥274 million; and an interim net loss attributable to owners of the parent of ¥410 million, compared with an interim net loss attributable to owners of the parent of ¥283 million.」

「Although we continued to review expenses overall, primarily advertising and sales promotion expenses, and worked to reduce and improve their efficiency, the significant decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 2.3 percentage points. As a result, the kimono store operations business recorded an operating loss of ¥518 million, compared with operating profit of ¥326 million in the same period of the previous year.」

「Although we reviewed expenses overall, primarily advertising and sales promotion expenses, and worked to reduce and improve their efficiency, the decline in sales and deterioration in the cost ratio, as described above, caused the SG&A-to-sales ratio to rise by 4.8 percentage points.」

「Although we reviewed expenses overall, primarily advertising and sales promotion expenses, and worked to reduce and improve their efficiency, the significant decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 1.8 percentage points.」

「In terms of profit, the gross margin declined by 3.4 percentage points from the same period of the previous year to 59.6%. Although we worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 0.3 percentage points.」

「Although we continued cost reductions through structural reforms and pursued initiatives to lower break-even sales, expenses increased with strong orders for general kimono and other products, while personnel expenses increased due to higher employee wages and bonuses. Consequently, the SG&A-to-sales ratio rose by 3.8 percentage points.」

「While continuing structural reforms under the medium-term plan and pursuing initiatives to lower break-even sales, expenses increased with strong orders for general kimono and other products, and personnel expenses increased 5.5% year on year due to higher employee wages and bonuses. Consequently, the SG&A-to-sales ratio rose by 0.4 percentage points.」

「In terms of profit, the gross margin improved by 1.2 percentage points from the same period of the previous year to 64.0%. Although expenses such as sales promotion expenses increased as orders for general kimono and other products remained strong, we continued structural reforms under the medium-term plan, as in the previous fiscal year, and pursued initiatives to lower break-even sales. Due to the increase in sales, as described above, and cost controls, the SG&A-to-sales ratio improved by 3.0 percentage points. As a result, operating profit in the kimono store operations business increased 210.4% year on year to ¥275 million.」

「Although expenses such as sales promotion expenses increased as orders for general kimono and other products remained strong, we continued structural reforms under the medium-term plan, as in the previous fiscal year, and pursued initiatives to lower break-even sales. As sales increased, as described above, the SG&A-to-sales ratio improved by 1.4 percentage points. As a result, operating profit in the kimono store operations business increased 381.3% year on year to ¥56 million.」

「We continued cost reductions through structural reforms from the previous fiscal year, particularly by securing sales while lowering the advertising and promotion expense ratio and pursuing initiatives to lower break-even sales. Although sales increased, as described above, the SG&A-to-sales ratio remained at approximately the same level as in the same period of the previous year, partly because personnel expenses, store rent and event cancellation costs of ¥376 million incurred during the temporary closure period had been recognized as extraordinary losses in the same period of the previous year.」

「We continued structural reforms under the medium-term plan and changes to a structure that secures sales while lowering the advertising and promotion expense ratio. Although sales increased, as described above, the SG&A-to-sales ratio rose by 3.5 percentage points, partly because personnel expenses, store rent and event cancellation costs incurred during the temporary closure period had been recognized as extraordinary losses in the same period of the previous year. As a result, operating profit in the kimono store operations business decreased 24.8% year on year to ¥433 million.」

「We continued structural reforms under the medium-term plan, as in the previous fiscal year, and are proceeding with changes to a structure that secures sales while lowering the advertising and promotion expense ratio.」

「We continued structural reforms under the medium-term plan, as in the previous fiscal year, and are proceeding with changes to a structure that secures sales while lowering the advertising and promotion expense ratio. Although personnel expenses, store rent and event cancellation costs incurred during the temporary closure period were recognized as extraordinary losses in the same period of the previous year, the increase in sales, as described above, caused the SG&A-to-sales ratio to improve by 1.3 percentage points.」

「In light of the COVID-19 pandemic, we are pursuing structural reforms under a medium-term plan so that we can generate profit even at the current level of sales, and are moving toward a structure that secures sales while lowering the advertising and promotion expense ratio. In addition, because personnel expenses, store rent and event cancellation costs incurred during the temporary closure period were recognized as extraordinary losses, total SG&A decreased by ¥2,170 million and the SG&A-to-sales ratio improved by 3.6 percentage points.」

「In light of the COVID-19 pandemic, we are pursuing structural reforms under a medium-term plan so that we can generate profit even at the current level of sales, and have begun changing to a structure that secures sales while lowering the advertising and promotion expense ratio. We also recognized personnel expenses, store rent and event cancellation costs incurred during the temporary closure period as extraordinary losses. As a result, total SG&A decreased by ¥1,905 million and the SG&A-to-sales ratio improved by 2.4 percentage points.」

「Although we worked to reduce expenses overall, including by controlling advertising and sales promotion expenses, personnel expenses, store rent and event cancellation costs incurred during the temporary closure period were recognized as extraordinary losses. As a result, total SG&A decreased by ¥1,441 million, but the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 6.1 percentage points.」

「Although we worked to reduce expenses overall, including by controlling advertising and sales promotion expenses, personnel expenses, store rent and event cancellation costs incurred during the temporary closure period were recognized as extraordinary losses. As a result, total SG&A decreased by ¥977 million, but the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 23.6 percentage points.」

「Although advertising expenses increased as advertising promotions were strengthened, the resulting increase in sales caused the SG&A-to-sales ratio to improve by 8.2 percentage points from the same period of the previous year.」

「In terms of profit, the gross margin declined by 0.6 percentage points from the same period of the previous year to 61.9%. Although upfront investment expenses aimed at securing orders from January onward have increased to a certain extent, primarily due to television commercials, the increase in sales, as described above, caused the SG&A-to-sales ratio to improve by 8.0 percentage points.」

「Although expenses increased, primarily advertising expenses, including television commercials, the increase in sales, as described above, caused the SG&A-to-sales ratio to improve by 7.6 percentage points.」

「Although variable expenses increased with the rise in orders received, the increase in sales, as described above, caused the SG&A-to-sales ratio to improve by 6.4 percentage points.」

「Although personnel expenses declined partly because 3 stores were closed at the end of the previous fiscal year, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 7.6 percentage points.」

「Although personnel expenses declined partly because 3 stores were closed at the end of the previous fiscal year, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 8.0 percentage points.」

「Although personnel expenses declined partly because 3 stores were closed at the end of the previous fiscal year, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 8.4 percentage points.」

「Although we have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 3.9 percentage points from the same period of the previous year.」

「Although we have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 4.8 percentage points. As a result, the kimono-related business recorded an operating loss of ¥107 million, compared with operating profit of ¥420 million in the same period of the previous year.」

「Although we have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 6.4 percentage points.」

「Although we have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, the decline in sales, as described above, caused the SG&A-to-sales ratio to rise by 2.4 percentage points.」

「The gross margin also improved by 0.8 percentage points from the same period of the previous year to 64.2%. We have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, and consequently the SG&A-to-sales ratio improved by 2.9 percentage points from the same period of the previous year. As a result, operating profit in the kimono-related business was ¥245 million, compared with an operating loss of ¥184 million in the same period of the previous year.」

「In terms of profit, gross profit decreased 0.4% year on year to ¥5,995 million. We have worked to reduce and improve the efficiency of expenses overall, primarily advertising and sales promotion expenses, and consequently the SG&A-to-sales ratio improved by 3.6 percentage points.」

「In terms of profit, gross profit increased 4.4% year on year to ¥4,267 million. Selling, general and administrative expenses improved by 6.6 percentage points as a percentage of revenue, as the company increased revenue while reducing and streamlining expenses, particularly advertising and promotional expenses.」

「Operating income increased by ¥175 million year on year to ¥179 million, as the company managed to increase revenue while reducing expenses.」

「Against this backdrop, the group has strengthened initiatives to reduce costs across the company while improving its product mix and promotional measures.」