Execution of the 5th Medium-Term Management Plan (for the NEXT STAGE2024)

「Against this backdrop, the group worked to optimize its business portfolio and rebuild its earnings base with the aim of realizing the 2030 vision, Personal Solution Company, set out in the Sixth Medium-Term Management Plan, N-Challenge 2027, announced on 3 February 2025.」

「As the second year of the Sixth Medium-Term Management Plan, N-Challenge 2027, we will further advance our business portfolio strategy toward realizing our 2030 Vision, the Personal Solution Company.」

「Against this backdrop, the group worked to optimize its business portfolio and rebuild its earnings base with the aim of realizing the 2030 vision, Personal Solution Company, set out in the Sixth Medium-Term Management Plan, N-Challenge 2027, announced on 3 February 2025.」

「In these circumstances, the Group identified rebuilding a stable earnings structure and increasing corporate value through growth as its top priorities for the fiscal year, and continued to pursue the following measures set out in the Fifth Medium-Term Management Plan, for which the current fiscal year was the final year.」

「In this environment, the Group identified rebuilding a stable earnings structure and increasing corporate value through growth as its top priorities for the fiscal year, and continued to pursue the following measures set out in the Fifth Medium-Term Management Plan, for which the current fiscal year was the final year.」

「Regarding the earnings outlook for the fiscal year ending January 2025, the final year of the Fifth Medium-Term Management Plan, the company will revise its initially announced plan to reflect the current operating environment, including the significant impact of the prolonged depreciation of the yen and rising raw material costs. It will continue to implement measures to strengthen sales, including strengthening in-store sales at department stores, expanding sales by deepening existing relationships and developing new channels at mass retailers, and further expanding sales through its EC business, which has room for growth and offers high profitability. In addition, it will steadily pursue cost-reduction measures by beginning initiatives with Tabio Corporation and reviewing its production infrastructure to make it more resilient to yen depreciation. The company is targeting consolidated net sales of ¥13,300 million and consolidated ordinary profit of ¥130 million, with the immediate aim of achieving stable profitability and rebuilding its earnings base toward its target ordinary profit margin of 3%.」

「Under these circumstances, the Group identified stabilizing its corporate foundation through an early recovery in performance as its most important management issue for the current fiscal year and implemented the following measures. In the base-cargo business, it focused on measures to improve profitability, including strengthening in-store sales capability by increasing floor share and reducing the cost ratio through a review of its production structure. In the mail-order business, positioned as a growth and development business, it worked to improve shopping convenience and focused on promotional activities using social media and mass media.」

「Under these circumstances, the Group identified stabilizing its corporate foundation through an early recovery in performance as its most important management issue for the current fiscal year and implemented the following measures.」

「Based on the results of the first year, for the second year, the fiscal year ending January 2024, the Company will retain the basic management policy and strategy of the Fifth Medium-Term Management Plan and pursue a revised plan premised on an increasingly challenging business environment. Its targets are: 1) rigorous cost management, including cost reductions through management rationalization; 2) higher profit through stronger in-store sales in existing channels and the development of new mass-retail channels; 3) cost reductions through measures such as production-site reallocation and improvement of the gross profit margin through changes in selling prices; and 4) further expansion of the mail-order business through EC and other high-margin channels with growth potential. The targets are consolidated net sales of ¥13.5 billion and a return to a consolidated ordinary profit of ¥200 million. For the final year, the fiscal year ending January 2025, the Company will focus on stabilizing performance, targeting the consolidated net sales of ¥15 billion and ordinary profit margin of 3% announced in the medium-term management plan. Its priorities, from the consumer's perspective, are: 1) further improving the earnings structure by reviewing the existing wholesale business model; 2) developing new mass-retail channels through products that enhance consumer value; 3) expanding the EC mail-order business through greater shopping convenience and an assortment that addresses detailed consumer needs; and 4) strengthening the supply chain with a view to collaboration with other companies.」

「The Group continued working to rebuild and stabilize its earnings base by steadily executing a business portfolio strategy built on two pillars: maintaining and strengthening the wholesale “base-cargo business” set out in the Fifth Medium-Term Management Plan, which began in 2022, and developing new opportunities in the retail and direct-sales businesses positioned as “growth investment and in-house development businesses.”」

「The Group worked to rebuild and stabilize its earnings base by steadily executing a business portfolio strategy built on two pillars: maintaining and strengthening the wholesale “base-cargo business” set out in the Fifth Medium-Term Management Plan, which began in 2022, and developing new opportunities in the retail and direct-sales businesses positioned as “growth investment and in-house development businesses.”」

「Under the Fifth Medium-Term Management Plan launched in 2022, as announced, the Group worked to maintain and strengthen its wholesale “base-cargo business,” an area of strength, and to pursue initiatives to develop new markets and demand through its retail and direct-sales businesses, positioned as “growth investment and in-house development businesses.”」

「As announced in the Fifth Medium-Term Management Plan (for the NEXT STAGE2024), which began in fiscal 2022, the Group is carrying forward the basic strategies of “B2B innovation” and “B2C development” from the previous medium-term management plan. It regards the medium- to long-term rebuilding and stabilization of its earnings base as an important management priority, to be achieved through a portfolio strategy based on two pillars: maintaining and strengthening the “base cargo business” centered on wholesale, an area in which the Company has strengths, and developing new markets and demand in the retail and direct-sales businesses, which are positioned as “growth investment and internally developed businesses.”」