Demand Volatility and Inventory Risk for Private-Label Products
First written in FY2016. 1 of 29 entries say "Mitigated", first in FY2018. Latest entry: FY2025.
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Other".
- FY2025Increase in product inventories and decrease in inventory valuation lossesAnnual report
「Merchandise and finished goods: ¥2,236.051 million; inventory valuation losses: ¥14.965 million」
The balance of merchandise and finished goods increased from ¥1,816.241 million in the previous fiscal year, while inventory valuation losses decreased from ¥29.409 million to ¥14.965 million. - FY2024Increase in merchandise valuation losses and merchandise subject to valuationAnnual report
「For the valuation basis and valuation method for merchandise, the company uses the cost method based on the monthly weighted-average method, with book values written down to reflect declines in profitability. … Merchandise: ¥1,871.192 million; merchandise valuation losses: ¥22.319 million」
The balance of merchandise subject to valuation increased from ¥1,660.112 million in the previous fiscal year to ¥1,871.192 million, while merchandise valuation losses increased from ¥14.553 million to ¥22.319 million. - FY2024-Q2Continued increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥100.000 million in securities, ¥216.905 million in products and finished goods, ¥272.541 million in foreign exchange contracts, and ¥174.212 million in other assets, partly offset by decreases of ¥294.695 million in cash and deposits and ¥225.910 million in notes and accounts receivable, among other factors.」
The balance of merchandise and finished goods increased by ¥216.905 million from the end of the previous consolidated fiscal year. Although balances associated with demand and inventory risks continue to increase, the company does not describe this as the materialization of inventory risk. - FY2024-Q1Increase in merchandise and finished goodsAnnual report
「This was mainly due to increases of ¥100.000 million in securities and ¥432.865 million in products and finished goods, partly offset by decreases of ¥975.645 million in cash and deposits and ¥335.118 million in foreign exchange contracts, among other factors.」
Product and finished-goods inventories increased by ¥432.865 million from the end of the previous consolidated fiscal year. Although the increase in the balance was indicated, the company did not explain it as the materialization of demand or inventory risk. - FY2023Increase in product inventories and inventory valuation lossesAnnual report
「Products ¥1,660.112 million; inventory valuation losses ¥14.553 million」
Products subject to valuation increased from ¥1,218.271 million in the previous fiscal year to ¥1,660.112 million, while inventory valuation losses increased from ¥13.078 million to ¥14.553 million. The company continues to value them using expectations regarding future sales and disposal. - FY2023-Q3Continued increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥572.989 million in products and finished goods and ¥690.966 million in other assets, partly offset by decreases of ¥410.338 million in cash and deposits, ¥164.355 million in notes and accounts receivable, and ¥120.242 million in foreign exchange contracts, among other factors.」
Product and finished-goods inventories increased by ¥572.989 million from the end of the previous consolidated fiscal year to ¥1,962.669 million. Although balances related to demand and inventory risk continued to increase, the company did not explain this as the materialization of risk. - FY2023-Q2Continued increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥253.949 million in notes and accounts receivable, ¥402.851 million in products and finished goods, and ¥650.713 million in other assets, partly offset by a ¥584.672 million decrease in foreign exchange contracts, among other factors.」
Product and finished-goods inventories increased by ¥402.851 million from the end of the previous consolidated fiscal year. Balances subject to risks relating to product valuation, demand and inventory continued to increase. - FY2023-Q1Significant increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥128.358 million in notes and accounts receivable, ¥749.228 million in products and finished goods, and ¥678.255 million in other assets, partly offset by decreases of ¥414.883 million in cash and deposits and ¥613.694 million in foreign exchange contracts, among other factors.」
Product and finished-goods inventories increased by ¥749.228 million from the end of the previous consolidated fiscal year, from ¥1,389.679 million to ¥2,138.908 million. An increase in balances related to demand and inventory risk was indicated, but the company did not explain it as the materialization of risk. - FY2022Increase in product and finished-goods inventories and valuation lossesAnnual report
「Products and finished goods increased by ¥247.439 million ... product valuation ... Products ¥1,218.271 million; inventory valuation losses ¥13.078 million」
Product and finished-goods inventories increased by ¥247.439 million from the end of the previous fiscal year, while inventory valuation losses increased from ¥11.613 million to ¥13.078 million. - FY2022-Q3Continued increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥902.417 million in cash and deposits, ¥398.533 million in notes and accounts receivable, and ¥458.485 million in products and finished goods, partly offset by a ¥500.000 million decrease in securities, among other factors.」
Product and finished-goods inventories increased by ¥458.485 million from the end of the previous consolidated fiscal year. Although the increase in the balance was indicated, the company did not explain it as the materialization of demand or inventory risk. - FY2022-Q2Increase in merchandise and finished goodsAnnual report
「This was mainly due to increases of ¥248.744 million in notes and accounts receivable and ¥339.575 million in products and finished goods, among other factors.」
Product and finished-goods inventories increased by ¥339.575 million from the end of the previous consolidated fiscal year. The company did not explain this increase as the materialization of inventory risk. - FY2022-Q1Significant increase in product and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥457.970 million in notes and accounts receivable and ¥443.966 million in products and finished goods, partly offset by an ¥81.289 million decrease in cash and deposits, among other factors.」
Product and finished-goods inventories increased by ¥443.966 million from the end of the previous consolidated fiscal year. A significant increase in balances related to product demand and inventory risk was indicated, but the company did not explain this as the materialization of risk. - FY2021Decline in product inventories and increase in inventory valuation lossesAnnual report
「For product valuation, the company applies the cost method using the monthly weighted-average method, with write-downs to book value due to declining profitability. Amounts recognized in the consolidated financial statements for the current consolidated fiscal year: Products ¥1,049.887 million; inventory valuation losses ¥11.613 million.」
Product and finished-goods inventories decreased by ¥218.009 million from the end of the previous fiscal year, while inventory valuation losses of ¥11.613 million were recorded. The company continues to value inventories using assumptions regarding expected sales and disposal. - FY2021-Q3Increase in merchandise and finished goodsAnnual report
「This was mainly due to increases of ¥148.990 million in notes and accounts receivable, ¥300.000 million in securities, and ¥49.913 million in products and finished goods, partly offset by a ¥404.483 million decrease in other assets, among other factors.」
Product and finished-goods inventories increased by ¥49.913 million from the end of the previous consolidated fiscal year. Changes in balances related to demand and inventory risk were indicated, but the company did not explain them as the materialization of risk. - FY2021-Q1Increase in merchandise and finished goodsAnnual report
「This was mainly due to increases of ¥634.217 million in notes and accounts receivable and ¥147.599 million in products and finished goods, partly offset by decreases of ¥183.858 million in cash and deposits, ¥200.000 million in securities, and ¥477.409 million in other assets, among other factors.」
Product and finished-goods inventories increased by ¥147.599 million from the end of the previous consolidated fiscal year. Changes in balances related to demand and inventory risk were indicated, but the company did not explain them as the materialization of risk. - FY2020Decline in product inventories and increase in inventory write-downsAnnual report
「This was mainly due to increases of ¥200.000 million in securities and ¥574.445 million in other assets, partly offset by decreases of ¥600.839 million in cash and deposits, ¥588.216 million in notes and accounts receivable, and ¥137.728 million in products, among other factors.」
Product inventories decreased by ¥137.728 million from the end of the previous fiscal year. Meanwhile, inventory write-downs due to declining profitability increased from ¥2.836 million to ¥7.341 million, indicating that the effects on demand and inventory were not uniform. - FY2020-Q3Increase in Inventory BalanceAnnual report
「This was mainly due to increases of ¥209.644 million in cash and deposits, ¥57.573 million in products, and ¥62.781 million in foreign exchange contracts, partly offset by a ¥282.939 million decrease in notes and accounts receivable, among other factors.」
Product inventories increased by ¥57.573 million from the end of the previous consolidated fiscal year. Inventories turned from a decrease in the previous quarter to an increase, but the company did not explain this as the materialization of inventory risk. - FY2020-Q2Decline in product inventoriesAnnual report
「This was mainly due to increases of ¥1,034.424 million in cash and deposits and ¥91.446 million in foreign exchange contracts, partly offset by a ¥347.111 million decrease in notes and accounts receivable, among other factors.」
Product inventories on the balance sheet decreased from ¥1,497.977 million at the end of the previous consolidated fiscal year to ¥1,423.620 million. Operating activities also showed a ¥77.453 million decrease in inventories. - FY2020-Q1Continued increase in product inventoriesAnnual report
「This was mainly due to increases of ¥261.609 million in notes and accounts receivable and ¥93.342 million in products, among other factors.」
While net sales declined 12.9% year on year, product inventories increased by ¥93.342 million from the end of the previous consolidated fiscal year. The company did not explain this increase as the materialization of inventory risk. - FY2019Decline in sales of proprietary products and increase in product inventoriesAnnual report
「Sales of proprietary products were ¥12,806.488 million in the fiscal year ended September 2018 and ¥12,189.931 million in the fiscal year ended September 2019. This was mainly due to increases of ¥310.378 million in cash and deposits and ¥89.804 million in products, partly offset by a ¥145.809 million decrease in notes and accounts receivable, among other factors.」
While sales of proprietary products declined, product inventories increased by ¥89.804 million from the end of the previous fiscal year. The company continues to strengthen OEM orders and place planned orders as measures to control inventory. - FY2019-Q3Continued increase in product inventories amid declining salesAnnual report
「This was mainly due to increases of ¥1,094.300 million in cash and deposits and ¥207.495 million in products, partly offset by decreases of ¥349.422 million in notes and accounts receivable and ¥113.307 million in foreign exchange contracts, among other factors.」
While net sales declined 6.4% year on year, product inventories increased by ¥207.495 million from the end of the previous consolidated fiscal year. The company did not explain this as the materialization of inventory risk. - FY2019-Q2Increase in product inventories amid declining salesAnnual report
「This was mainly due to increases of ¥1,101.968 million in cash and deposits, ¥225.233 million in notes and accounts receivable, and ¥279.441 million in products, among other factors.」
While net sales declined 1.6% year on year, product inventories increased by ¥279.441 million from the end of the previous consolidated fiscal year. The company did not explain this as the materialization of inventory risk. - FY2019-Q1Continued increase in product inventoriesAnnual report
「This was mainly due to increases of ¥102.471 million in cash and deposits, ¥600.785 million in notes and accounts receivable, and ¥189.166 million in products, partly offset by a ¥95.299 million decrease in foreign exchange contracts.」
Product inventories increased by ¥189.166 million from the end of the previous consolidated fiscal year. The company did not explain this increase as the materialization of inventory risk. - FY2018MitigatedAnnual report
「Sales of proprietary products were ¥11,734.562 million in the fiscal year ended September 2017 and ¥12,806.488 million in the fiscal year ended September 2018. Against this backdrop, to control inventory risk, our group is working to optimize inventory levels by strengthening orders for OEM products and placing planned orders for general products based on consumer demand trends and other factors.」
While sales of proprietary products increased, product inventories decreased by ¥303.585 million from the end of the previous fiscal year. The company cited stronger OEM orders and planned purchasing as measures to control inventory risk. - FY2018-Q2Continued increase in product inventoriesAnnual report
「This was mainly due to increases of ¥478.666 million in cash and deposits, ¥463.627 million in notes and accounts receivable, and ¥123.940 million in products, partly offset by a ¥159.209 million decrease in foreign exchange contracts.」
Product inventories increased by ¥123.940 million from the end of the previous consolidated fiscal year. Although product inventories related to demand volatility and proprietary-product inventory risk continued to increase, the company did not explain this increase as the materialization of inventory risk. - FY2018-Q1Continued increase in product inventoriesAnnual report
「Current assets increased by ¥922.474 million from the end of the previous consolidated fiscal year to ¥10,836.115 million. This was mainly due to increases of ¥385.998 million in cash and deposits, ¥495.039 million in notes and accounts receivable, and ¥163.353 million in products, partly offset by decreases of ¥21.692 million in foreign exchange contracts and ¥122.494 million in other assets.」
Product inventories increased by ¥163.353 million from the end of the previous consolidated fiscal year. The company did not explain this increase as the materialization of inventory risk. - FY2017Decline in sales and increase in product inventoriesAnnual report
「Sales of proprietary products were ¥12,357.994 million in the fiscal year ended September 2016 and ¥11,734.562 million in the fiscal year ended September 2017. Current assets increased by ¥138.627 million from the end of the previous consolidated fiscal year to ¥9,913.640 million. This was mainly due to increases of ¥130.770 million in notes and accounts receivable, ¥268.064 million in products, and ¥159.209 million in foreign exchange contracts, partly offset by a ¥408.186 million decrease in cash and deposits.」
While sales of proprietary products declined, product inventories increased by ¥268.064 million from the end of the previous fiscal year. The company identified strengthening OEM orders and optimizing inventory levels through planned purchasing as measures. - FY2017-Q3Increase in product inventoriesAnnual report
「Current assets increased by ¥481.044 million from the end of the previous consolidated fiscal year to ¥10,256.056 million. This was mainly due to increases of ¥187.353 million in cash and deposits, ¥31.518 million in notes and accounts receivable, ¥217.045 million in products, and ¥91.629 million in foreign exchange contracts, partly offset by a ¥58.079 million decrease in other assets.」
Product inventories increased by ¥217.045 million from the end of the previous consolidated fiscal year. Although net sales declined year on year, the company did not explain this increase as the materialization of inventory risk. - FY2016First statedAnnual report
「Sales of proprietary products were ¥10,965.386 million in the fiscal year ended September 2015 and ¥12,357.994 million in the fiscal year ended September 2016. As proprietary products are generally purchased outright from suppliers, returning them to suppliers is difficult. Accordingly, except for certain OEM products and made-to-order products manufactured exclusively for particular customers based on special orders for colors, patterns and other specifications, sales trends may affect inventory levels.」
The company quantifies sales of proprietary products and describes the risk that, because products are generally purchased outright, inaccurate demand forecasts could affect inventory, markdowns and advertising expenses.