Business-Structure Reform and High-Efficiency Management

「In terms of profit, profit was at the same level as the previous year, mainly due to the effect of expense reductions from withdrawing from unprofitable stores.」

「In the current fiscal year, we made additional inventory valuation adjustments in connection with a review of inventory valuation and optimized brand-related assets, with the aim of improving the efficiency of the brand business going forward.」

「Under these conditions, DAKS has worked to develop new customer segments and expand sales channels through pop-up events and collaborations with other brands, while LEONARD has advanced product planning and development aimed at acquiring next-generation customers. However, the impact of weak store sales was substantial, and despite efforts to reduce expenses, the business reported lower sales and profit. As a result, total sales for the business declined 14.5% year on year to 4,211 million yen, and segment profit (operating profit) declined 69.1% to 244 million yen.」

「In Japan, domestic Group companies selling “DAKS” and “LEONARD” through department stores and other channels opened the Omotesando store, LEONARD’s flagship store, in October of the previous year and are working to improve gross margins by emphasizing full-price sales.」

「In Japan, domestic Group companies selling “DAKS” and “LEONARD” through department stores and other channels opened the Omotesando store, LEONARD’s flagship store, in October, focusing on higher brand value while working to improve gross margins by emphasizing full-price sales.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels emphasize full-price sales and work to improve gross margins, thereby strengthening their earnings structure. Store sales remained strong as opportunities to go out increased, resulting in higher sales and profit.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels emphasize full-price sales and pursue measures to strengthen their earnings structure. Sales were broadly flat, but profit increased as the market environment remained firm and gross margins improved.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels emphasized full-price sales and worked to improve gross margins, thereby strengthening their earnings structure. The market environment remained firm, resulting in higher sales and profit.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels emphasized full-price sales and worked to improve gross margins, thereby strengthening their earnings structure. The market environment remained firm, resulting in higher sales and profit. As a result, total sales for the business increased 16.6% year on year to 3,777 million yen, and segment profit (operating profit) increased 56.5% to 1,026 million yen.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels emphasized full-price sales and worked to improve gross margins, thereby strengthening their earnings structure. The market environment also remained firm as COVID-19 cases declined, resulting in higher sales and profit.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels have pursued measures to strengthen their earnings structure, including exiting unprofitable stores, emphasizing full-price sales and improving gross margins.」

「In the domestic business, domestic subsidiaries selling “DAKS” and “LEONARD” through department stores and other channels have pursued measures to strengthen their earnings structure, including exiting unprofitable stores, emphasizing full-price sales and improving gross margins.」

「In the domestic business, domestic subsidiaries selling the “DAKS” and “LEONARD” brands through department stores and other channels exited unprofitable stores, emphasized full-price sales and worked to improve gross margins. As a result, sales declined, but profit improved significantly because of expense reductions such as personnel costs.」

「In the domestic business, domestic subsidiaries selling the “DAKS” and “LEONARD” brands through department stores and other channels reported higher sales because the impact of temporary closures and shortened hours in the previous year, when operations were restricted under the state of emergency, was limited. Profit also improved due partly to expense reductions such as personnel costs as the Group advanced a business strategy emphasizing management efficiency. As a result, total sales for the business increased 3.3% year on year to 1,379 million yen, and segment profit (operating profit) increased 60.7% to 214 million yen.」

「Partly because of the effects of the business structural reforms pursued since the end of the previous fiscal year, total selling, general and administrative expenses declined by 2,751 million yen from the previous fiscal year, increasing operating profit by 1,859 million yen to 1,956 million yen.」

「Partly because of the effects of the business structural reforms pursued since the end of the previous fiscal year, operating profit increased 17.3% year on year to 1,754 million yen and ordinary profit increased 22.4% to 2,428 million yen.」

「The fashion-related business as a whole reported a substantial decline in sales, but profit increased because the benefits of efforts since the end of the previous fiscal year to reduce fixed costs and build a profit-focused earnings structure in response to weak consumption caused by the spread of the infection were substantial. As a result, total sales for the business declined 37.7% year on year to 3,485 million yen, while segment profit (operating profit) increased 30.4% to 618 million yen.」

「We have pursued business structural reform aimed at building a strong financial base and stable earnings structure to address the uncertain outlook ahead.」

「To address the uncertain business environment ahead, we have renewed our determination to slow the pace of our proactive management policy in the next fiscal year and undertake further business structural reform.」

「In the domestic business, we are advancing business structural reform that prioritizes customer focus and product quality while emphasizing management efficiency to enhance the brand value of “DAKS” and “LEONARD.”」

「In the domestic business, we pursued business structural reform emphasizing management efficiency, with customer priority and product quality as the top priorities, to enhance the brand value of “DAKS” and “LEONARD.” During the first 6 months, domestic subsidiaries selling these brands through department stores and other channels continued to reduce operating inventories. Sales declined because of weak department-store sales and the withdrawal from unprofitable stores, but profit increased as a result of efforts to reduce expenses such as personnel and logistics costs.」

「In the domestic business, we have pursued business structural reform emphasizing management efficiency, with customer priority and product quality as the top priorities, to enhance the brand value of “DAKS” and “LEONARD.”」

「The Group has pursued profit-focused, prudent management and stable dividends while advancing bold business structural reform and strengthening its financial position. It has now reached a point where the structural reforms are on track and has established an even stronger financial base.」

「In the domestic business, while apparel sales at department stores and elsewhere continued to struggle, we prioritized the customer and pursued business structural reform emphasizing management efficiency. Sales of heavy apparel struggled because temperatures remained relatively high from autumn onward, and the business reported lower sales and profit despite the effects of thorough cuts in expenses such as rent and personnel costs and the withdrawal from unprofitable stores in the previous fiscal year. As a result, total sales for the business declined 10.8% year on year to 10,165 million yen, and segment profit (operating profit) declined 3.4% to 1,379 million yen.」

「Against this backdrop, the Group continued to pursue thorough management efficiency while working to further enhance the brand value of its flagship brand, “DAKS,” and expand earnings. As a result, consolidated sales for the first 6 months were down 2.2% year on year at 12,912 million yen, operating profit was up 47.2% at 881 million yen, ordinary profit was up 42.1% at 1,141 million yen, and profit attributable to owners of the parent was up 51.9% at 885 million yen.」

「In the domestic business, while apparel sales at department stores and elsewhere continued to struggle, we prioritized the customer and pursued business structural reform emphasizing management efficiency. Sales declined due to the withdrawal from unprofitable stores after reviewing profitability by store, but profit increased because of thorough reductions in expenses such as rent and personnel costs. As a result, total sales for the business declined 8.0% year on year to 2,865 million yen, while segment profit (operating profit) was 190 million yen, compared with a segment loss of 9 million yen in the previous fiscal year.」

「Against this backdrop, the Group has pursued thorough management efficiency based on the fundamental management principle of prioritizing profit over sales. Operating profit increased 247 million yen, or 12.9%, year on year to 2,170 million yen, partly because total selling, general and administrative expenses declined by 805 million yen from the previous fiscal year.」

「Under these circumstances, the Group has returned to the management principle of prioritizing profit over sales and worked to expand profit by thoroughly cutting expenses as part of the business structural reforms pursued to date. As a result, consolidated sales for the first 9 months were down 2.2% year on year at 21,153 million yen, while operating profit increased 22.8% to 1,972 million yen.」

「Under a sales strategy that prioritizes profit, we are urgently reviewing store efficiency, including staffing, in Japan to enhance brand value and improve operating efficiency. At the same time, we are strengthening production controls and rapidly reducing inventories. We are also working to improve margins by cutting personnel expenses, advertising expenses and other costs.」

「Against this backdrop, sales failed to grow in either Japan or overseas, resulting in lower sales, but the Group maintained a thorough focus on profit rather than sales, rapidly strengthened its business foundations for the future, and worked to strengthen its corporate structure. As a result, consolidated sales for the first quarter were down 4.9% year on year at 5,746 million yen, operating profit was up 93.8% at 82 million yen, ordinary profit was up 43.7% at 306 million yen, and profit attributable to owners of the parent was up 183.0% at 235 million yen.」

「Against this backdrop, the Group has maintained a thorough focus on earnings, seeking to further improve management efficiency by raising margins and reducing expenses. Sales declined this fiscal year because sales failed to grow in both Japan and overseas, but operating profit and below increased due partly to the positive impact of lower taxes.」

「We are working to further improve management efficiency and strengthen earnings by reviewing our store strategy, pursuing thorough cost reductions and reducing inventories.」

「We are working to further improve management efficiency and strengthen earnings by reviewing our store strategy and pursuing thorough cost reductions.」

「Accordingly, we are working on organizational reforms and management improvements, including improving workforce efficiency and optimizing product inventories.」

「We are reviewing the businesses of all Group companies and seeking to further improve management efficiency.」