Inventory optimization through revamping the product development process and rationalizing the brand portfolio

「The Company aims to improve inventory efficiency by establishing a supply system based on supply-and-demand forecasts using digital data.」

「The gross profit margin declined due in part to increased markdown sales resulting from increased markdowns for disposing of slow-moving inventory and strengthened point-rebate programs.」

「The main factors included a ¥608 million increase in merchandise and finished goods, but cash and deposits decreased by ¥1,066 million and trade notes, accounts receivable and contract assets decreased by ¥1,408 million, among others. / Increase in inventories of ¥694 million / Gross profit declined due in part to increased markdown sales of seasonal merchandise such as sandals」

「Although we continue to optimize the brands handled, the items offered and inventory-efficiency improvement measures for merchandise and finished goods, we recognize the need to improve the level of completion of each product and undertake further initiatives to improve inventory efficiency.」

「The main factors included a ¥930 million increase in merchandise and finished goods, but cash and deposits decreased by ¥1,437 million and trade notes, accounts receivable and contract assets decreased by ¥1,415 million, among others. / Increase in inventories of ¥951 million」

「As a result of implementing measures to optimize the items offered and improve inventory efficiency, markdowns and slow-moving inventory decreased, while selling, general and administrative expenses increased as business activities normalized, although」

「Although merchandise and finished goods increased by ¥856 million, the company implemented measures to optimize the items offered and improve inventory efficiency, and markdowns and slow-moving inventory decreased, although」

「The main factors included an ¥844 million increase in merchandise and finished goods, but cash and deposits decreased by ¥1,236 million and trade notes, accounts receivable and contract assets decreased by ¥622 million, among others.」

「Although markdowns and slow-moving inventory decreased through optimization of the items offered and inventory-efficiency improvement measures」

「The main factors included increases of ¥395 million in merchandise and finished goods and ¥106 million in raw materials and supplies, but cash and deposits decreased by ¥968 million and trade notes, accounts receivable and contract assets decreased by ¥348 million, among others. / Gross profit increased by 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 from the same quarter of 2019, before the COVID-19 pandemic, due in part to reduced markdowns following optimization of the items offered and inventory-efficiency improvement measures.」

「The main factors included a ¥689 million increase in merchandise and finished goods, but cash and deposits decreased by ¥728 million and trade notes, accounts receivable and contract assets decreased by ¥510 million, among others. / The gross profit margin improved by 5.4 percentage points year on year and by 5.3 percentage points from the same quarter of 2019, before the COVID-19 pandemic, due in part to reduced markdowns following optimization of the items offered and inventory-efficiency improvement measures.」

「In terms of earnings, markdown sales decreased through optimization of the items offered and inventory-efficiency improvement measures. Gross profit increased by 27.2% year on year, while the gross profit margin improved by 6.0 percentage points year on year and by 3.9 percentage points from the same quarter of 2019, before the COVID-19 pandemic.」

「The main factor was a ¥1,348 million decrease in merchandise and finished goods, among others. / The gross profit margin also improved by 5.5 percentage points through optimization of the items offered and inventory-efficiency improvement measures, among other factors.」

「The gross profit margin also improved by 3.6 percentage points through optimization of the items offered and inventory-efficiency improvement measures.」

「The gross profit margin also improved by 4.1 percentage points through measures such as optimizing the items offered and improving inventory efficiency. However, sales had not recovered sufficiently amid the COVID-19 pandemic, and losses were recorded at every stage of profit.」

「Meanwhile, sales through the online shop increased by 115.3% year on year in the same quarter of the previous year, when sales expanded sharply amid the COVID-19 pandemic and emergency inventory-reduction measures were implemented. This year, sales fell by 29.5% because no major inventory-reduction measures were implemented, while gross profit increased by 9.2% and the gross profit margin improved by 17.3 percentage points.」

「The main factors included a ¥1,953 million decrease in merchandise and finished goods, but cash and deposits increased by ¥3,603 million, among others. / Decline in the gross profit margin due to increased markdowns for disposing of slow-moving inventory, among other factors」

「The main factors included an ¥846 million decrease in merchandise and finished goods and a ¥458 million decrease in trade notes and accounts receivable, but cash and deposits increased by ¥2,852 million, among others. / In terms of earnings, although selling, general and administrative expenses were comprehensively reviewed and reduced, gross profit declined substantially with the sharp decrease in net sales. In addition, the gross profit margin fell by 2.7 percentage points year on year due in part to increased markdowns to dispose of merchandise inventories that had become slow-moving during the COVID-19 pandemic, and all profit figures were substantially below the previous year's results.」

「The main factors included decreases of ¥781 million in trade notes and accounts receivable and ¥174 million in electronically recorded monetary claims, but cash and deposits increased by ¥2,017 million and merchandise and finished goods increased by ¥421 million, among others. / The main factors included a ¥952 million decrease in trade receivables, but also a pre-tax quarterly net loss of ¥1,899 million, a ¥1,403 million decrease in trade payables and a ¥486 million increase in inventories, among others.」

「The main factors included a ¥1,303 million decrease in trade notes and accounts receivable, but merchandise and finished goods increased by ¥820 million, while cash and deposits increased by ¥3,015 million as the company borrowed ¥5,400 million to prepare for the prolonged impact of COVID-19, among others. / Across all business formats, sales of spring merchandise introduced before April had not progressed, and excess inventory remained even after the state of emergency was lifted. The tendency to restrict purchases was strengthening」

「By optimizing and streamlining the brands handled and the number of items offered, we will improve the level of completion of each product and seek to enhance profitability by improving inventory efficiency. For domestic in-house production, we will leverage the strengths of an SPA business model, aim to achieve short-lead-time, small-lot production that accurately reflects market trends, and work to reduce waste and revitalize our products. / Merchandise and finished goods increased by ¥1,194 million / The amount of inventory write-downs due to declining profitability of inventories held for ordinary sale was ¥1,117 million」

「The main factors included a ¥957 million increase in merchandise and finished goods, but cash and deposits decreased by ¥355 million and trade notes and accounts receivable decreased by ¥1,382 million, among others. / In addition to the decline in gross profit accompanying the decrease in net sales, the gross profit margin fell due in part to increased markdowns for seasonal merchandise and slow-moving inventory」

「The main factors included a ¥784 million increase in merchandise and finished goods, but cash and deposits decreased by ¥519 million and trade notes and accounts receivable decreased by ¥983 million, among others. / The main factors included a ¥1,136 million decrease in trade receivables, but also a ¥880 million increase in inventories, a ¥197 million decrease in trade payables, a ¥184 million decrease in accrued consumption taxes and other liabilities, and a pre-tax quarterly net loss of ¥116 million, among others. / Decline in the gross profit margin due to increased markdowns for disposing of slow-moving inventory」

「The main factors included an ¥889 million increase in cash and deposits and a ¥278 million increase in merchandise and finished goods, but trade notes and accounts receivable decreased by ¥1,929 million, among others. / In terms of earnings, although selling, general and administrative expenses were reduced, gross profit declined in line with the decrease in net sales, and the gross profit margin fell due in part to increased markdowns for disposing of slow-moving inventory. As a result, all profit figures were below the previous year's results.」

「Merchandise and finished goods 7,238 7,508 / Work in process 269 293 / Raw materials and supplies 725 685」

「The main factors included pre-tax quarterly net income of ¥155 million and a ¥724 million decrease in trade receivables, but these were offset by a ¥334 million increase in inventories, a ¥465 million decrease in trade payables and ¥430 million in corporate income tax payments, among others.」

「Results exceeded the previous year's performance, owing to the improvement in the gross profit margin resulting from a reduction in long-stay inventory and the effects of reductions in selling, general and administrative expenses, including advertising expenses.」

「The gross profit margin improved because inventory levels were optimized as a result of measures to reduce slow-moving inventory that we had pursued since the previous consolidated fiscal year.」

「Business remained sluggish, partly because measures to optimize inventory based on in-store sales conditions were implemented. / The gross profit margin is trending upward due to the effects of measures to reduce slow-moving inventory,」

「We implemented measures to strengthen brand value by overhauling the product development process and to optimize inventory,」

「The gross profit margin is improving, partly because the enhanced measures to reduce slow-moving inventory implemented in the previous fiscal year had a certain effect in optimizing inventory levels.」

「We also worked on inventory optimization measures, including overhauling the product development process and restructuring the brands we carry. / A ¥704 million decrease in inventories was recorded as a result of measures to reduce slow-moving inventory and other initiatives.」

「In addition, we worked on inventory optimization measures, including overhauling the product development process and restructuring the brands we carry. / In the outlet business, we implemented enhanced measures to reduce slow-moving inventory, including seasonal merchandise, in order to optimize inventory levels.」

「In the outlet business, we implemented measures to reduce slow-moving inventory, including seasonal merchandise, in order to optimize inventory levels. As a result, markdown sales increased and the gross profit margin declined.」

「In addition, we worked on inventory optimization measures, including overhauling the product development process and restructuring the brands we carry.」