Improving Profitability Through Business Structure Reform

「Gross profit margin declined due to higher raw material and other costs and sales initiatives aimed at optimizing inventory levels, but the SG&A ratio fell as the Group thoroughly improved the efficiency of store operations and promotional activities, resulting in higher profits at every level.」

「In addition, tighter inventory management and greater efficiency in selling, general and administrative expenses proved effective, resulting in higher profit at all levels.」

「The gross profit margin improved by 0.2 percentage points to 54.7% as a result of thorough inventory management and other measures.」

「In addition, although the gross profit margin declined as the company systematically optimized inventory levels, the resulting increases in personnel expenses, advertising expenses and other costs were offset by more efficient store operations following the expansion of multi-brand stores, lowering the ratio of selling, general and administrative expenses to revenue.」

「In addition, although the gross profit margin declined as the company systematically optimized inventory levels, the ratio of selling, general and administrative expenses to revenue declined because increases in personnel expenses resulting from wage increases and advertising expenses were offset by more efficient store operations following the expansion of multi-brand stores.」

「In addition, as a result of the global business structural reforms and progress in improving product supply chain efficiency, the operating profit margin for the current period rose from the previous period. For the consolidated fiscal year, revenue increased and profit rose substantially at all levels. Operating profit reached its highest level since fiscal 2008.」

「In addition, due to the results of the global business-structure reforms and progress in improving product supply-chain efficiency, the operating margin rose from the previous fiscal year, and the consolidated third quarter saw higher revenue and higher profit at every stage of the income statement.」

「In addition, the gross profit margin continued to rise due to the pronounced results of the global business restructuring program and progress in improving the efficiency of the product supply chain. Meanwhile, the SG&A ratio declined significantly due to improved sales efficiency from the rollout of multi-brand stores and other measures.」

「In addition, the results of the global business restructuring program pursued since fiscal 2019 became particularly evident, and the gross profit margin improved as a result of increased efficiency in the product supply chain. Meanwhile, the SG&A ratio declined significantly due to improved sales efficiency from the rollout of multi-brand stores and other measures.」

「In addition, Onward Personal Style Co., Ltd., which operates KASHIYAMA, increased revenue and improved profitability through measures including reviewing selling prices and reducing fixed costs by improving business efficiency.」

「In addition, the company continued to control discount sales and thoroughly implement centralized inventory management. The results of the global business restructuring program pursued since fiscal 2019 also became evident, improving the gross profit margin and SG&A ratio and achieving profitability at every level from operating profit and ordinary profit to quarterly net income attributable to owners of the parent.」

「In addition, the gross profit margin improved significantly and operating profit substantially exceeded the previous year's results due to continued controls on discount sales and thorough centralized inventory management.」

「Gross profit increased by ¥16,909 million from the previous consolidated fiscal year, due to the effects of the global business restructuring program and reduced lost sales opportunities following the launch of the centralized inventory management system. The gross profit margin improved by 11.8 percentage points to ¥87,612 million.」

「In the domestic business, the core operating company, Onward Kashiyama Co., Ltd., withdrew from unprofitable businesses and stores, significantly improved operating results and returned to profitability. In the overseas business, the benefits of withdrawing from unprofitable businesses under the global business restructuring program became evident, profitability improved and the operating loss narrowed significantly.」

「The results of the global business-structure reforms undertaken since the autumn of the year before last became apparent, with operating income improving due to a substantial improvement in the gross profit margin and a decline in the SG&A ratio from fixed-cost reductions, among other factors.」

「We steadily implemented the global business restructuring program, which we had been pursuing since the autumn of the year before last.」

「Amid this challenging business environment, while working to control purchasing and reduce fixed costs, we steadily carried out, as part of the global business-structure reforms implemented since the previous fiscal year, withdrawals from businesses including the unprofitable Italy business, the discontinuation of unprofitable brands and the withdrawal from unprofitable stores in Japan and overseas.」

「In response to this difficult operating environment, we continued withdrawing from unprofitable businesses and stores under the global business restructuring program implemented since the previous consolidated fiscal year, while working to restrain procurement and reduce fixed costs.」

「Meanwhile, we have worked to consolidate our brand portfolio, withdraw from unprofitable stores, control purchasing and reduce fixed costs.」

「In response to this difficult operating environment, we worked to reduce the burden of losses associated with the closure of brick-and-mortar sales channels by restraining procurement and reducing fixed costs, among other measures,」

「Extraordinary income amounted to ¥2,988 million, primarily from gains on sales of property, plant and equipment and investment securities. Extraordinary loss amounted to ¥36,732 million, primarily due to impairment losses and special retirement payments associated with the global business restructuring program.」

「At a meeting of the Board of Directors held on 6 December 2019, we decided to solicit applications for voluntary retirement.」

「In response to the changes in the operating environment described above, we decided to implement a global business restructuring program involving withdrawal from unprofitable businesses, reductions in business scale and the closure of unprofitable stores in the markets of Europe and the United States, Asia and Japan.」

「In addition, we will continue to pursue business selection and concentration through business-structure reforms to strengthen our operating foundation and respond to the challenging market environment.」

「Earnings increased due to the withdrawal from unprofitable businesses and brands and expense controls, while the domestic business as a whole posted lower revenue but higher earnings.」

「In addition to the benefits of improved profitability through business restructuring, the company strengthened promotion of its core brands and continued measures such as enhancing e-commerce, resulting in higher earnings despite lower revenue.」

「In addition to the earnings improvement from business-structure reforms, the Company increased profit despite a decline in sales by continuing measures such as strengthening promotions for core brands and e-commerce.」

「At that company, profitability improved to some extent as a result of business restructuring. In addition, continued initiatives such as strengthening promotions for core brands and e-commerce led to higher profit despite lower revenue.」