Profit pressure from rising raw material prices and selling, general and administrative expenses and the disposal of slow-moving inventory
First written in FY2017-Q1. 20 of 37 entries say "Worsened", first in FY2017. Latest entry: 2026-08-05.
Regal moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
0 other companies' latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「All profit figures fell below the previous year's results due mainly to the decline in gross profit resulting from lower net sales.」
The decline in gross profit accompanying lower sales caused the operating loss to widen from ¥201 million in the previous quarter to ¥410 million, while ordinary income and net income also fell into the red. - FY2026WorsenedAnnual report
「The Company recorded an operating loss and an ordinary loss as the gross profit margin declined due to increased markdown sales resulting from markdowns on slow-moving inventory and stronger points-based incentives, while gross profit also declined as a result of lower net sales.」
Although inventory efficiency improvements and price revisions were pursued, increased discount sales through clearance discounts on slow-moving inventory and points-return programmes caused operating income to turn from a profit of ¥397 million to a loss of ¥385 million. - FY2026-H1WorsenedAnnual report
「Gross profit declined due to lower sales and increased discount sales of seasonal merchandise such as sandals, among other factors, causing all profit measures to fall below the previous year's results. / Operating loss was ¥624 million (operating loss of ¥231 million in the same period of the previous year).」
Gross profit declined due to increased discount sales of seasonal merchandise and lower sales, causing the operating loss to widen from ¥231 million in the same period of the previous year to ¥624 million. - FY2025Gross profit improvement alongside higher selling, general and administrative expensesAnnual report
「Gross profit increased 1.6% year on year, partly due to the effects of inventory efficiency improvement measures. However, operating income and ordinary income fell below the previous year's results due to higher selling, general and administrative expenses resulting from increased personnel costs, including outsourcing fees in the footwear retail business, and intensified advertising and other promotional activities.」
Although gross profit increased 1.6% due to improved inventory efficiency, operating income and ordinary income declined as selling, general and administrative expenses, including personnel and advertising costs, increased. - FY2025-H1Gross profit improvement alongside higher selling, general and administrative expensesAnnual report
「Gross profit increased 7.5% year on year, partly due to the effects of inventory efficiency improvement measures. However, selling, general and administrative expenses increased as business activities normalised, and although results were improving compared with the previous year, losses were still recorded at every level from operating income downward.」
Although gross profit increased 7.5% due to improved inventory efficiency, higher selling, general and administrative expenses accompanying the normalisation of business activities left all profit measures in the red. - FY2024MitigatedAnnual report
「Some product prices were revised due to higher raw material prices and product procurement costs, among other factors, while product lineup optimisation and inventory efficiency improvement measures reduced discounts and slow-moving inventory. Although selling, general and administrative expenses increased as business activities normalised, operating income and ordinary income both exceeded the previous year's results due to higher gross profit, among other factors.」
Although costs continued to rise, price revisions, product lineup optimisation and improved inventory efficiency reduced discounts and slow-moving inventory, improving operating income to ¥518 million and ordinary income to ¥536 million. - FY2024-Q3WorsenedAnnual report
「In terms of profitability, some product prices were revised due to higher raw material prices and product procurement costs, among other factors, and product lineup optimisation and inventory efficiency improvement measures reduced discounts and slow-moving inventory. However, operating income and ordinary income both fell below the previous year's results due to higher selling, general and administrative expenses accompanying the normalisation of business activities, among other factors.」
Although price revisions, product lineup optimisation and improved inventory efficiency reduced discounts and slow-moving inventory, operating income and ordinary income fell below the previous year's results due to higher selling, general and administrative expenses, among other factors. - FY2024-Q2WorsenedAnnual report
「In terms of profitability, although discounts and slow-moving inventory declined as a result of product lineup optimisation and inventory efficiency improvement measures, the gross profit margin fell 2.7 percentage points year on year due to the effects of foreign exchange fluctuations, including the weaker yen, and higher raw material prices and product procurement costs, among other factors. All profit measures fell below the previous year's results.」
Although discounts and slow-moving inventory declined, the gross profit margin fell 2.7 percentage points year on year due to the weaker yen and higher raw material prices and procurement costs, with pressure on earnings becoming apparent. - FY2024-Q1WorsenedAnnual report
「Although discounts and slow-moving inventory declined as a result of product lineup optimisation and inventory efficiency improvement measures, cost of sales increased 4.5% year on year due to higher raw material prices and product procurement costs, causing operating income and ordinary income both to fall below the previous year's results.」
Although discounts and slow-moving inventory declined as inventory improved, cost of sales increased 4.5% year on year due to higher raw material prices and product procurement costs, putting pressure on earnings. - FY2023-Q3Price revisions and gross profit margin improvement amid rising costsAnnual report
「Some product prices were revised due to higher raw material prices, logistics costs and product procurement costs, among other factors. In addition, discounts declined following the implementation of product lineup optimisation and inventory efficiency improvement measures. As a result, gross profit increased 17.1% year on year, while the gross profit margin improved by 2.9 percentage points year on year and by 3.8 percentage points compared with the same quarter of 2019, before the COVID-19 pandemic.」
Although raw material, logistics and procurement costs continued to rise, price revisions for some products, product lineup optimisation and improved inventory efficiency reduced discounts, improving gross profit and the gross profit margin. - FY2023-Q2Price revisions and gross profit margin improvement amid rising costsAnnual report
「Some product prices were revised due to higher raw material prices, logistics costs and product procurement costs, among other factors. In addition, discounts declined following the implementation of product lineup optimisation and inventory efficiency improvement measures. As a result, gross profit increased 30.4% year on year, while the gross profit margin improved by 5.4 percentage points year on year and by 5.3 percentage points compared with the same quarter of 2019, before the COVID-19 pandemic.」
Although raw material, logistics and procurement costs continued to rise, price revisions for some products, product lineup optimisation and improved inventory efficiency reduced discounts, improving gross profit and the gross profit margin. - FY2023-Q1Gross profit margin improvement alongside rising costsAnnual report
「The operating environment has remained challenging due to higher crude oil and raw material prices, among other factors. Meanwhile, discounts declined as a result of product lineup optimisation and inventory efficiency improvement measures, and the gross profit margin improved by 6.0 percentage points year on year and by 3.9 percentage points compared with the same quarter of 2019, before the COVID-19 pandemic.」
Although crude oil and raw material prices continued to rise, discounts declined through product lineup optimisation and improved inventory efficiency, resulting in an improved gross profit margin. - FY2022WorsenedAnnual report
「In the footwear industry as well, consumer spending was expected to recover as restrictions on activities were eased. However, the overall market for leather shoes has been shrinking due to changes in consumption patterns and values triggered by the COVID-19 pandemic, the diversification of work styles, and other factors. In addition, the operating environment has remained challenging due to higher crude oil and raw material prices, among other factors.」
The company again described higher crude oil and raw material prices, in addition to inventory clearance and lower sales, as factors putting pressure on earnings in its operating environment. - FY2022-Q3WorsenedAnnual report
「In addition, the operating environment has remained challenging due to higher crude oil and raw material prices, among other factors.」
Although the previous reductions in selling, general and administrative expenses and improvements in inventory efficiency provided mitigating factors, the company identified higher crude oil and raw material prices as factors putting pressure on earnings. - FY2022-Q2MitigatedAnnual report
「Selling, general and administrative expenses declined 4.3% year on year and 29.4% compared with the same quarter of 2019 due to personnel cost reductions under business structure improvement measures and the closure of unprofitable stores. The gross profit margin also improved by 4.1 percentage points through measures to optimise the product lineup and improve inventory efficiency. However, sales have not yet recovered amid the COVID-19 pandemic, and losses were recorded at every level of profit.」
Although cost reductions from personnel reductions and the closure of unprofitable stores, as well as gross profit margin improvements from product lineup optimisation and better inventory efficiency, progressed, sales did not recover and losses were recorded at every level of profit. - FY2022-Q1MitigatedAnnual report
「Expenses increased 8.3% year on year, partly because in the previous year ¥511 million in fixed costs incurred due to temporary closures and other factors was transferred to extraordinary losses. However, expenses declined 28.6% compared with the same quarter of 2019 due to personnel cost reductions under business structure improvement measures and the closure of unprofitable stores.」
Selling, general and administrative expenses increased 8.3% year on year, but declined 28.6% compared with the same quarter of 2019 due to personnel cost reductions and the closure of unprofitable stores. - FY2021WorsenedAnnual report
「Although selling, general and administrative expenses, including fixed costs, were comprehensively reduced, operating income and ordinary income both fell below the previous year's results due to the decline in the gross profit margin resulting from increased clearance discounts on slow-moving inventory and the decline in gross profit accompanying a significant decrease in net sales.」
Although selling, general and administrative expenses were reduced, the gross profit margin and gross profit declined due to clearance discounts on slow-moving inventory and lower sales, placing increasing pressure on earnings. - FY2021-Q3WorsenedAnnual report
「In terms of profitability, although selling, general and administrative expenses were comprehensively reviewed and reduced, the gross profit margin fell 2.7 percentage points year on year due to the decline in gross profit accompanying a significant decrease in net sales and increased clearance discounts aimed at optimising product inventory that had accumulated during the COVID-19 pandemic, among other factors, and all profit measures fell substantially below the previous year's results.」
Although selling, general and administrative expenses were reduced, the gross profit margin fell 2.7 percentage points year on year due to lower sales and increased clearance discounts on slow-moving inventory, and pressure on earnings continued. - FY2021-Q2WorsenedAnnual report
「In terms of profitability, although selling, general and administrative expenses were comprehensively reviewed and reduced, the gross profit margin fell 4.2 percentage points year on year due to the decline in gross profit accompanying a significant decrease in net sales and increased clearance discounts aimed at optimising product inventory that had accumulated during the COVID-19 pandemic, among other factors, and all profit measures fell substantially below the previous year's results.」
Although selling, general and administrative expenses were reduced, the gross profit margin fell 4.2 percentage points year on year due to lower sales and increased clearance discounts on slow-moving inventory, placing increasing pressure on earnings. - FY2021-Q1WorsenedAnnual report
「In terms of profitability, although selling, general and administrative expenses were comprehensively reviewed and reduced, results fell substantially below the previous year's results due mainly to the decline in gross profit accompanying a significant decrease in net sales.」
Although selling, general and administrative expenses were reduced, the decline in gross profit resulting from a significant decrease in net sales put substantial pressure on earnings, which fell below the previous year's results. - FY2020WorsenedAnnual report
「Although selling, general and administrative expenses were reduced, operating income and ordinary income both fell below the previous year's results due to the substantial decline in gross profit accompanying lower net sales, the decline in the gross profit margin resulting from increased clearance discounts on seasonal merchandise and slow-moving inventory, and the recognition of inventory valuation losses.」
Although selling, general and administrative expenses were reduced, lower sales, increased clearance discounts on seasonal merchandise and slow-moving inventory, and inventory valuation losses resulted in an operating loss of ¥727 million and an ordinary loss of ¥591 million. - FY2020-Q3WorsenedAnnual report
「In terms of profitability, although selling, general and administrative expenses were reduced, all profit measures fell below the previous year's results due to the decline in gross profit accompanying lower net sales, as well as the decline in the gross profit margin resulting from increased clearance discounts on seasonal merchandise and slow-moving inventory.」
Although selling, general and administrative expenses were reduced, lower sales and a decline in the gross profit margin due to increased clearance discounts on seasonal merchandise and slow-moving inventory resulted in an operating loss of ¥194 million, an ordinary loss of ¥75 million, and a quarterly net loss attributable to owners of the parent of ¥312 million. - FY2020-Q2WorsenedAnnual report
「Although selling, general and administrative expenses were reduced, all profit measures fell below the previous year's level due to the decline in gross profit resulting from lower sales and the lower gross profit margin caused by increased discounts on the disposal of slow-moving inventory.」
Although selling, general and administrative expenses were reduced, the decline in sales and the lower gross profit margin resulting from increased discounts on the disposal of slow-moving inventory weighed on profit, resulting in an operating loss, ordinary loss, and net loss. - FY2020-Q1WorsenedAnnual report
「Although selling, general and administrative expenses were reduced, all profit measures fell below the previous year's level due to the decline in gross profit resulting from lower sales and the lower gross profit margin caused by increased discounts on the disposal of slow-moving inventory.」
While selling, general and administrative expenses were reduced, the decline in sales and the lower gross profit margin resulting from increased discounts on the disposal of slow-moving inventory emerged as factors weighing on profit. - FY2019-Q3RestatedAnnual report
「Although selling, general and administrative expenses were reduced, all profit measures fell below the previous year's level due to the decline in gross profit resulting from lower sales.」
The company states that although selling, general and administrative expenses continued to decline, all profit measures fell below the previous year's level due to the decline in gross profit resulting from lower sales. - FY2019-Q2MitigatedAnnual report
「Although the company reduced selling, general and administrative expenses including advertising expenses and non-operating expenses declined, operating profit and profit attributable to owners of the parent fell below the previous year's level due to the decline in gross profit.」
Although reductions in selling, general and administrative expenses including advertising expenses continued, operating profit and profit attributable to owners of the parent fell below the previous year's level due to the decline in gross profit. - FY2019-Q1MitigatedAnnual report
「Profit increased above the previous year's level across all measures due to the improvement in the gross profit margin and reductions in selling, general and administrative expenses including advertising expenses.」
The company cites the effect of addressing factors weighing on profit, including a shift from an operating loss in the previous year to operating profit, through improvement in the gross profit margin and reductions in selling, general and administrative expenses. - FY2018MitigatedAnnual report
「Although the company reduced selling, general and administrative expenses and recorded extraordinary gains from the sale of land associated with the relocation of a sales office and the partial sale of investment securities, profit fell below the previous year's level due to the decline in gross profit resulting from lower sales and other factors. / The gross profit margin improved because slow-moving inventory reduction measures optimized inventory levels.」
While reductions in selling, general and administrative expenses and slow-moving inventory improved inventory levels and the gross profit margin, profit fell below the previous year's level due to lower sales. - FY2018-Q3RestatedAnnual report
「Although selling, general and administrative expenses were at approximately the same level as the previous year, both operating profit and ordinary profit fell below the previous year's level due to the decline in gross profit resulting from lower sales.」
The company continues to state that the decline in gross profit resulting from lower sales, rather than an increase in selling, general and administrative expenses, was the factor behind the weaker profit performance. - FY2018-Q2SoftenedAnnual report
「Although selling, general and administrative expenses were at approximately the same level as the previous year, profit fell below the previous year's level due to the decline in gross profit resulting from lower sales.」
Rather than an increase in selling, general and administrative expenses as previously reported, these expenses remained at approximately the previous year's level, with the decline in gross profit resulting from lower sales identified as the factor behind the weaker profit performance. - FY2018-Q1WorsenedAnnual report
「Profit fell below the previous year's level due to lower sales and higher selling, general and administrative expenses at retail stores and associated with changes to the points program. / Operating loss was ¥11 million (operating profit of ¥196 million in the same quarter of the previous year).」
The company states that higher labor costs and higher selling, general and administrative expenses associated with changes to the points program weighed on profit, resulting in a shift from operating profit to operating loss. - FY2017WorsenedAnnual report
「In addition to the decline in gross profit resulting from soaring raw material prices and measures to reduce slow-moving inventory to optimize inventory levels, results fell below the previous year's level due to higher labor costs at retail stores and increased advertising expenses associated with changes to the points program implemented from April this year.」
In addition to the previously cited raw material prices, inventory disposal, and labor costs, higher advertising expenses associated with changes to the points program were explicitly identified as a factor weighing on profit. Operating profit was ¥1,451 million, down 27.1% year on year. - FY2017-Q3RestatedAnnual report
「Profit fell below the previous year's level due to the decline in gross profit resulting from soaring raw material prices, higher selling, general and administrative expenses including labor costs, and the disposal of slow-moving inventory, including seasonal merchandise.」
Raw materials, selling, general and administrative expenses including labor costs, and the disposal of slow-moving inventory continue to be cited as factors weighing on gross profit and profit. Although no figures are provided, the impact has materialized as a decline in profit. - FY2017-Q2RestatedAnnual report
「Profit fell below the previous year's level due to soaring raw material prices, higher selling, general and administrative expenses related to retail sales staff, and the disposal of slow-moving inventory, including seasonal merchandise.」
Raw material prices, selling, general and administrative expenses, and the disposal of slow-moving inventory continue to be cited as factors weighing on profit. - FY2017-Q1First statedAnnual report
「Results fell below the previous year's level due to soaring raw material prices, higher selling, general and administrative expenses related to retail sales staff, and the disposal of slow-moving inventory, including seasonal merchandise.」
Raw materials, labor costs, and the disposal of slow-moving inventory are specifically cited as factors behind the decline in profit for the quarter.