Reduction in Procurement Costs and Expansion of Market Share for High-Value-Added Products

「The company worked to stabilize earnings by improving product cost ratios through a review of the production structure for its core product categories across each product category.」

「The company also worked to improve product cost ratios by reviewing the production structure for its core product categories, and sales and operating profit remained in line with plan.」

「For its core product categories across all sales channels, the company worked to improve product cost ratios by implementing appropriate price increases and reviewing its production structure to withstand soaring raw material prices and the weaker yen.」

「In the base cargo business, the company focused on strengthening in-store sales by increasing its share of floor space, as well as on measures to improve profitability, including reducing the cost ratio by reviewing its production structure.」

「In the department store business, the company focused on strengthening sales at stores and worked to restore profitability by lowering the cost ratio through higher added value in its products.」

「Gross profit margin declined significantly. Although cost of sales rose due to soaring raw material prices and the rapid depreciation of the yen, and some selling prices were raised from the third quarter onward, these measures were insufficient to offset the increase in costs.」

「The company aims to restore performance by implementing efficient management through thorough control of costs, procurement and inventory.」

「As a result, the gross margin improved by 6.6 percentage points from the previous year to 39.0%, but gross profit was ¥5,245 million, an increase of ¥1,461 million from the previous fiscal year and a decrease of ¥465 million against plan, falling short of plan.」

「In addition to these initiatives, the company worked to generate positive operating profit and operating cash flow and secure financial soundness by procuring the right products in the right quantities at the right times and reducing fixed costs.」

「Rebuilding the supply chain through the right timing, right quantity, right location and right production to respond flexibly to change」

「Against this backdrop, the Group focused on various initiatives, including developing new channels and expanding sales through company-operated stores and the Naigai online shop, which are core strategies of the Fourth Medium-Term Management Plan. In response to the challenging operating environment during the COVID-19 pandemic, it made generating positive operating cash flow through stronger inventory sales, restrained procurement and expense reductions its highest priority.」

「Against this backdrop, the Group focused on developing new channels and expanding sales through company-operated stores and the Naigai online shop, which are core strategies of the Fourth Medium-Term Management Plan, in order to respond to changes in the environment surrounding the company. It also worked to restrain procurement and reduce expenses in response to the challenging operating environment during the COVID-19 pandemic.」

「In the department-store channel of the legwear business, the core of the wholesale business, the company focused on measures to increase in-store sales while consistently conducting demand-linked wholesaling, and worked to improve margins through cost reductions. The gross margin improved by 2.0 percentage points to 38.4%.」

「In the department-store channel of the legwear business, the core of the wholesale business, the company focused on measures to increase in-store sales while consistently conducting demand-linked wholesaling, and worked to improve margins through cost reductions.」

「In the department-store channel of the legwear business, the core of the wholesale business, the company focused on measures to increase in-store sales while consistently conducting demand-linked wholesaling, and worked to improve margins through cost reductions.」

「In the department-store channel of the legwear business, the core of the wholesale business, the company focused on measures to increase in-store sales while consistently conducting demand-linked wholesaling, and worked to improve margins through cost reductions.」

「In the legwear business, the department-store channel continued to pursue cost reductions based on the right-location, right-product policy,」

「In the legwear business, the core of the wholesale business, the department-store channel continued to pursue procurement-cost reductions based on the right-location, right-product policy,」

「In the mass-retail channel, acquisition of private-label business from major mass-retail chains and new OEM contracts progressed steadily. Combined with continued cost reductions from the previous fiscal year, this improved the gross margin and resulted in higher revenue and profit.」

「Profit was broadly in line with the previous year as cost-reduction efforts improved the gross margin.」

「Profit increased as the gross margin improved, owing to continued efforts to reduce procurement costs under the right-location, right-product policy and to lower returns through consistent delivery of the right products in the right quantities at the right times.」

「Profit increased as the company improved its gross profit margin through procurement-cost reductions based on its right-location, right-product policy and improved sales efficiency with fewer returns by consistently delivering the right quantities at the right time in department-store channels.」

「In department-store channels, revenue declined partly due to returns of old-stock inventory, but the gross profit margin improved as the company pursued procurement-cost reductions based on its right-location, right-product policy and improved in-store inventory efficiency through the consistent delivery of the right quantities at the right time.」