Expanding Sales and Earnings Power by Concentrating Resources on Core Businesses

「During the six months ended 30 September, sales to existing customers continued to exceed the previous year, but sales to walk-in customers fell below the previous year amid continued cautious consumer behaviour. In addition, the decline in the number of stores, particularly in the department store channel, caused sales to fall below the previous year.」

「As a result, net sales for the fiscal year were ¥58,448 million, down 3.4% year on year; operating income was ¥1,298 million, down 52.2%; and ordinary income was ¥1,436 million, down 49.2%.」

「As a result, the group's net sales for the six months ended 30 September were ¥27,042 million, down 3.1% year on year; operating loss was ¥213 million, compared with operating income of ¥599 million in the same period of the previous year; ordinary loss was ¥149 million, compared with ordinary income of ¥678 million; and interim net loss attributable to owners of the parent was ¥299 million, compared with interim net income of ¥457 million.」

「We continue to work on strengthening new store openings, securing sales by launching e-commerce-only brands, controlling procurement cost ratios, managing inventory, and improving the gross profit margin by raising the full-price sales ratio.」

「First-quarter sales fell below the previous year due to the backlash from the exceptionally strong pent-up demand after the COVID-19 pandemic eased and weak sale sales resulting from a substantial reduction in carried-over inventory. In the second quarter, however, full-price sales, including products for midsummer, were strengthened in anticipation of a smaller sale scale and sustained extreme heat, resulting in sales above the previous year. For the six-month consolidated period, sales were slightly below the previous year.」

「However, although sales rose sharply in the previous fiscal year as pent-up demand after the COVID-19 pandemic eased was stronger than expected, sales in the first quarter of the current fiscal year fell below the previous year due largely to the backlash from that demand and the decline in sale sales resulting from a substantial reduction in carried-over inventory. Full-price sales, meanwhile, remained at roughly the previous year's level, causing the full-price sales ratio to exceed plan and contributing to an improved gross profit margin.」

「We secured sales broadly in line with expectations as customer traffic recovered at physical stores, including our core department stores, and coats and other outerwear, whose initial sales had been delayed, finally began to sell as temperatures declined from late October. As a result, the group's net sales for the nine months ended 30 November were ¥44,603 million, up 6.4% year on year; operating income was ¥1,727 million, up 68.0%; ordinary income was ¥1,773 million, up 52.4%; and net income attributable to owners of the parent was ¥1,696 million, up 72.2%.」

「Against this backdrop, our group secured sales above expectations as customer traffic at physical stores, including our core department stores, recovered steadily with the increase in foot traffic and inbound demand, demand for occasion products rose as various events resumed, and spring/summer full-price products performed well overall, helped by the introduction of commemorative products for the 80th anniversary of our founding.」

「Against this backdrop, our group secured sales above expectations as customer traffic recovered at physical stores, including our core department stores, with the recovery in foot traffic and inbound demand, and spring/summer full-price products, including commemorative items for the 80th anniversary of our founding, performed well.」

「We secured sales above plan as customer traffic recovered at department stores and directly operated stores, our main sales channels, and occasion items such as suits, jackets, and dresses, as well as core cold-weather products such as coats and down jackets, began to sell with increased opportunities to go out.」

「Against this backdrop, our group's sales exceeded plan as heavy clothing, including coats, performed steadily following the increase in opportunities to go out and the recovery in customer traffic at department stores and directly operated stores after the easing of activity restrictions, while inbound demand also began to recover for some brands from October.」

「Against this backdrop, our group's sales exceeded plan as demand recovered for business and occasion-related products with increased opportunities to go out, and customer traffic at department stores and directly operated stores recovered following the easing of activity restrictions.」

「In addition to the recovery in customer traffic at department stores and directly operated stores following the easing of restrictions on activities and requests to refrain from going out, sales significantly exceeded the previous year partly because some stores, mainly in Tokyo and Osaka, had been closed or operated for shorter hours under a state of emergency from late April of the previous year.」

「While improving the efficiency of existing department stores, the main sales channel, through workforce reviews and multi-brand store development, we will actively open new stores in high-potential locations where profitability is expected.」

「As a result, net sales for the nine months ended 30 November increased 2.1% from the previous year.」

「As a result, net sales for the six months ended 31 August were 107.2% of the previous year's level, when stores nationwide were closed, but were only 90.4% of plan.」

「By channel, following efforts to streamline the department store business in the fiscal year ending February 2021, we plan sales of ¥24,530 million, or 68% of the fiscal year ended February 2020, by improving the efficiency of existing stores. For directly operated stores, we plan sales of ¥3,660 million, or 59% of the fiscal year ended February 2020, partly due to the closure of the Ginza directly operated store. For e-commerce and mail-order sales, we plan sales of ¥7,610 million, or 110% of the fiscal year ended February 2020.」

「As a result, in the expanding e-commerce channel, focused investment and measures such as improving the out-of-stock rate produced results and secured sales above plan. However, difficult conditions continued in the main channels, particularly department stores, and total sales declined slightly from the previous year, partly due to weather conditions.」

「During the nine months ended 30 November, sales increased slightly year on year and operating income and ordinary income also improved, driven by enhanced sales measures during the summer clearance sale, stronger full-price promotions from September, and front-loaded demand ahead of the consumption tax increase. As a result, the group's net sales for the nine months ended 30 November were ¥42,105 million, up 1.7% year on year.」

「As a result, in the expanding e-commerce channel, focused investment and measures such as improving the out-of-stock rate produced results and secured sales above plan. However, difficult conditions continued, particularly in department stores, the main sales channel, and total sales increased only slightly from the previous year due in part to weather conditions.」

「We worked to improve performance through a range of proactive measures, including marketing investment to support higher sales, strengthening e-commerce channels, and digital investment to promote the digitalisation of the business as a whole. As a result, the group's net sales for the first quarter of the current fiscal year were ¥16,114 million, up 2.9% year on year.」

「In addition to strengthening and expanding existing businesses, we intend to expand new businesses and brands, including M&A, and accelerate e-commerce growth.」

「As proactive measures to secure sales and return to a growth trajectory, we will make additional investments in e-commerce, a growth channel, as well as marketing investments in advertising and promotions for existing businesses, which we had previously restrained.」

「As part of our growth strategy, we intend to strengthen our businesses by expanding the strategy for reinforcing existing businesses, further accelerating growth in e-commerce and digital businesses, and developing new businesses based on the action guidelines of "new channels, new customers, and new products/services," with a strong sense of urgency.」

「As measures to improve the top line, we will reassess the value offered by each existing business and enhance our competitive advantages, while further accelerating e-commerce growth and strengthening the development of new businesses, including M&A, and the expansion of directly operated stores.」

「As measures to increase the top line, we intend to strengthen the business by expanding existing businesses, developing new businesses including through M&A, and accelerating the further growth of e-commerce, with a strong sense of urgency.」

「As measures to increase the top line, we intend to strengthen the business by expanding existing businesses, developing new businesses including through M&A, and accelerating the further growth of e-commerce, with a strong sense of urgency.」

「We will promote product development for new channels and establish production capabilities, while opening stores mainly in urban commercial facilities. We will also strengthen the operating capabilities of directly managed stores through the use of digital technology.」

「By making active investments centered on our core businesses, we will expand sales, strengthen earnings power, and establish a profit base.」

「By making active investments centered on our core businesses, we will expand sales, strengthen earnings power, and establish a profit base.」