Impairment Losses Due to Lower Store Profitability
First written in FY2019. 16 of 22 entries say "Materialised", first in FY2021-Q1. Latest entry: 2026-09-11.
The whole theme swung hardest in 2020: 61 of 114 companies on the "Worse" side.
- FY2027-H1MitigatedAnnual report
「The interim consolidated accounting period (1 February 2026 to 31 July 2026) Location: Shinjuku, Tokyo Use: Office Type: Trademark right Impairment loss (¥ thousand): 582 For the office whose cash flows from operating activities remained negative on an ongoing basis, we assessed whether impairment treatment was necessary. For the asset group subject to impairment, the carrying amount was reduced to its recoverable amount, and the reduction of ¥582 thousand was recognized as an impairment loss under extraordinary losses.」
The impairment loss declined sharply from ¥60.501 million in the same period of the previous year to ¥582 thousand, and the affected asset changed from multiple stores to an office in Shinjuku, Tokyo. However, impairment losses continued to be recognized. - FY2026MaterialisedAnnual report
「During the consolidated fiscal year, impairment losses were recognized for the following asset groups.」
An impairment loss of ¥300.774 million was recognized for 16 stores and an office in Tokyo, 2 stores in Saitama Prefecture and 1 store in Osaka Prefecture, after their cash flows from operating activities remained negative on an ongoing basis. This was up from ¥222.118 million in the previous fiscal year. - FY2026-H1MaterialisedAnnual report
「For stores whose cash flows from operating activities remained negative, we assessed whether impairment treatment was necessary. For the asset groups subject to impairment, the carrying amounts were reduced to their recoverable amounts, and the reductions, totaling ¥60.501 million, were recognized as impairment losses under extraordinary losses. The recoverable amounts were measured based on value in use.」
An impairment loss of ¥60.501 million was recognized for 6 stores, including those in Toshima, Tokyo, after their cash flows from operating activities remained negative on an ongoing basis. This was up from ¥35.551 million in the same period of the previous year. - FY2025MaterialisedAnnual report
「The Company Group recognized impairment losses on the following asset groups.」
An impairment loss of ¥222.118 million was recognized for 10 stores, comprising 3 in Tokyo, 6 in Kanagawa Prefecture and 1 in Fukuoka Prefecture, after their cash flows from operating activities remained negative on an ongoing basis. This was up from ¥55.731 million in the previous fiscal year. - FY2025-H1MaterialisedAnnual report
「For stores whose cash flows from operating activities remained negative, we assessed whether impairment treatment was necessary. For the asset groups subject to impairment, the carrying amounts were reduced to their recoverable amounts, and the reductions, totaling ¥35.551 million, were recognized as impairment losses under extraordinary losses. The recoverable amounts were measured based on value in use.」
An impairment loss of ¥35.551 million was recognized for 3 stores, including those in Fujisawa, Kanagawa Prefecture, after their cash flows from operating activities remained negative on an ongoing basis. - FY2024MaterialisedAnnual report
「During the consolidated fiscal year, impairment losses were recognized for the following asset groups.」
An impairment loss of ¥55.731 million was recognized for 1 store in Tokyo and 1 store in Fukuoka Prefecture due to lower profitability. Although this was down from ¥312.897 million in the previous consolidated fiscal year, the risk of lower store profitability materialized over the full fiscal year. - FY2024-Q3No impairment loss in the third quarterAnnual report
「There were no applicable items during the nine-month consolidated period of the third quarter (1 February 2023 to 31 October 2023).」
No impairment loss was recognized during the nine-month consolidated period of the third quarter, compared with an impairment loss of ¥172.413 million in the same period of the previous year. - FY2023MaterialisedAnnual report
「After reviewing the future recoverability of the stores' property, plant and equipment and determining that profitability had declined, we reduced the assets to their recoverable amount and recognized an impairment loss. As a result, extraordinary losses were ¥312.897 million, and net loss attributable to owners of the parent was ¥379.495 million.」
An impairment loss of ¥312.897 million was recognized for stores whose profitability had declined. The affected stores comprised 12 in Tokyo, 1 in Kanagawa Prefecture and 1 in Chiba Prefecture. - FY2023-Q3MaterialisedAnnual report
「For stores whose cash flows from operating activities remained negative, the carrying amount was reduced to the recoverable amount, and the reduction was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥172.413 million was recognized for 7 stores, including those in Chofu, Tokyo, where cash flows from operating activities remained negative. - FY2022MaterialisedAnnual report
「In addition, during the fiscal year, although ¥119.594 million in subsidy income was recognized as non-operating income due to the impact of COVID-19, impairment losses were recognized on stores for which negative future cash flows were expected based on estimates. As a result, extraordinary losses of ¥48.792 million were recognized.」
The risk of lower store profitability continued to materialize, and extraordinary losses of ¥48.792 million, including an impairment loss of ¥42.290 million, were recognized. - FY2021MaterialisedAnnual report
「In addition, during the fiscal year, the business was affected by COVID-19. We recognized impairment losses on stores for which negative future cash flows were expected based on estimates, resulting in extraordinary losses of ¥100.803 million.」
The risk of lower store profitability materialized, and extraordinary losses including an impairment loss of ¥86.394 million were recognized during the fiscal year. - FY2021-Q4MaterialisedAnnual report
「The main changes comprised decreases, including a quarterly loss before income taxes of ¥47.777 million and a ¥16.963 million decrease in consumption taxes payable, offset by increases including depreciation and amortization of ¥68.126 million and impairment losses of ¥46.582 million.」
An impairment loss of ¥46.582 million was recognized due to lower store profitability. The income statement also includes a loss on store closures of ¥3.232 million. - FY2020MaterialisedAnnual report
「In addition, during the fiscal year, the business was affected by COVID-19. We recognized impairment losses on stores for which negative future cash flows were expected based on estimates, losses arising from that impact, and losses from the cancellation of new store openings following the decision to cancel some planned openings in order to concentrate management resources. As a result, we recognized extraordinary losses of ¥204.841 million.」
The risk of lower store profitability materialized, and extraordinary losses including an impairment loss of ¥156.285 million were recognized during the fiscal year. - FY2021-Q1MaterialisedAnnual report
「Quarterly net income was ¥99.084 million, down 20.1% year on year, mainly because impairment losses were recognized on stores for which negative future cash flows were expected based on estimates.」
The risk of lower profitability materialized, and an impairment loss of ¥39.937 million was recognized. - FY2019First statedAnnual report
「If profitability declines significantly in the future due to a sharp change in the external environment or other factors, or if we decide to close a store, we may recognize an impairment loss.」
Impairment testing is performed using each store as a cash-generating unit, with impairment expected in the event of lower profitability or store closures.