Restructuring Sales Channels and Product Mix in the Apparel Business and Improving Profitability

「ユニフォーム事業につきましては、直需案件およびレンタル案件の受注が増加したことにより、増収増益となりました。」

「The uniform business generated revenue of ¥4,615 million, up 10.0% from the previous fiscal year, as orders for new uniform-product projects and ongoing projects increased. In addition, segment profit rose substantially as profit margins improved through more thorough cost management and other measures. As a result, revenue in this business segment was ¥5,139 million, up 7.4% from the previous fiscal year, and segment profit (operating profit) was ¥194 million, up 185.1% from the previous fiscal year.」

「The uniform business posted a substantial increase in revenue as orders for new uniform-product projects and deliveries for ongoing projects increased. As a result, revenue in this business segment was ¥2,463 million, up 37.3% year on year, and the segment profit (operating profit) was ¥133 million, compared with a segment loss of ¥84 million in the same period of the previous year.」

「The uniform business performed well, including by securing orders for large projects, generating ¥4,197 million in sales to external customers and returning to profitability. As a result, revenue in this business segment was ¥4,783 million, up 7.9% from the previous fiscal year, and the segment profit (operating profit) was ¥68 million, compared with a segment loss of ¥125 million in the previous consolidated fiscal year.」

「The apparel business posted lower revenue as sales of products for GMS customers in the men’s business declined. The uniform business also posted lower revenue as new uniform-product projects decreased. As a result, revenue in this business segment was ¥1,795 million, down 19.5% year on year, and the segment loss (operating loss) was ¥84 million, compared with a segment loss of ¥70 million in the same period of the previous year.」

「The uniform business generated ¥3,852 million in sales to external customers as the number of uniform-product projects declined, but earnings improved as profit margins rose following reviews of procurement costs and selling prices, among other measures, and through efforts to reduce expenses. As a result, revenue in this business segment was ¥4,434 million, down 14.2% from the previous fiscal year, and the segment loss (operating loss) was ¥125 million, compared with a segment loss of ¥172 million in the previous consolidated fiscal year.」

「The men’s business and women’s/OEM business saw a substantial decline in revenue as order values fell, reflecting the continued depreciation of the yen and the shift by major customers toward placing orders directly with manufacturers and factories. The uniform business also posted lower revenue because the number of uniform-product delivery projects in the second and third quarters declined. As a result, revenue in this business segment was ¥3,188 million, down 17.3% year on year, and the segment loss (operating loss) was ¥186 million, compared with a segment loss of ¥126 million in the same period of the previous year.」

「The men’s business and women’s/OEM business saw a substantial decline in revenue as order values fell. The uniform business also posted lower revenue because the number of uniform-product projects in the second quarter fell significantly. As a result, revenue in this business segment was ¥2,231 million, down 14.9% year on year, and the segment loss (operating loss) was ¥70 million, compared with a segment loss of ¥59 million in the same period of the previous year.」

「In the uniform business, profit margins, which had fallen sharply in the previous consolidated fiscal year, recovered as the number of new projects for uniform products increased and the company made progress in responding to currency fluctuations. Earnings consequently improved. Accordingly, revenue in this business was ¥1,142 million, up 25.6% year on year, and the segment loss (operating loss) was ¥49 million, compared with a segment loss of ¥124 million in the same period of the previous year.」

「In the uniform business, the company did not win any large orders for uniform products, and sales to external customers were ¥4,303 million. Profit margins also declined due in part to the sharp depreciation of the yen and higher raw material prices. Accordingly, revenue in this business was ¥5,169 million, down 9.1% from the previous fiscal year, and the segment loss (operating loss) was ¥172 million, compared with segment profit of ¥63 million in the previous consolidated fiscal year.」

「In the men's and women's OEM businesses, orders declined due to weak in-store apparel sales, resulting in lower revenue. In the uniform business, revenue increased partly because the company won new projects for uniform products, but earnings declined as profit margins fell due to the sharp depreciation of the yen and higher raw material prices. Accordingly, revenue in this business was ¥3,856 million, up 0.5% year on year, and the segment loss (operating loss) was ¥126 million, compared with a segment loss of ¥73 million in the same period of the previous year.」

「In the men's and women's OEM businesses, orders declined due to weak in-store apparel sales, resulting in lower revenue. In the uniform business, revenue and earnings declined as the number of new projects for uniform products fell and profit margins deteriorated due to the sharp depreciation of the yen and higher raw material prices. Accordingly, revenue in this business was ¥2,620 million, down 5.1% year on year, and the segment loss (operating loss) was ¥59 million, compared with segment profit of ¥26 million in the same period of the previous year.」

「In the uniform business, the number of new projects for uniform products declined, and existing customers continued to show a tendency to defer purchases. Although the company worked to win orders through sales promotions and new products, revenue and earnings declined substantially. Accordingly, revenue in this business was ¥909 million, down 35.0% year on year, and the segment loss (operating loss) was ¥124 million, compared with a segment loss of ¥31 million in the same period of the previous year.」

「Revenue in this business was ¥5,689 million, compared with ¥7,625 million in the previous consolidated fiscal year, and segment profit (operating profit) was ¥63 million, unchanged from the ¥63 million recorded in the previous consolidated fiscal year.」

「In the men's and women's OEM businesses, orders declined due to weak in-store apparel sales, resulting in lower revenue and earnings. In the uniform business, orders for uniform products and sales-promotion products remained solid, but orders for hygiene products declined substantially, resulting in lower revenue. Accordingly, revenue in this business was ¥3,838 million, compared with ¥5,183 million in the same period of the previous year, and the segment loss (operating loss) was ¥73 million, compared with a segment loss of ¥38 million in the same period of the previous year.」

「In the men's and women's OEM businesses, orders declined due to weak in-store apparel sales, resulting in lower revenue and earnings. In the uniform business, orders for uniform products and sales-promotion products remained solid, but orders for hygiene products declined substantially, and production delays in Vietnam also contributed to lower revenue. Accordingly, revenue in this business was ¥2,760 million, compared with ¥4,062 million in the same period of the previous year, and segment profit (operating profit) was ¥26 million, compared with segment profit of ¥121 million in the same period of the previous year.」

「In the men's and women's OEM businesses, orders declined due to weak in-store apparel sales, resulting in lower revenue and earnings. In the uniform business, orders for uniform products and sales-promotion products remained solid, but orders for hygiene products declined substantially, resulting in lower revenue. Accordingly, revenue in this business was ¥1,398 million, compared with ¥2,230 million in the same period of the previous year, and the segment loss (operating loss) was ¥31 million, compared with segment profit of ¥156 million in the same period of the previous year.」

「In the men's and women's OEM businesses, the declaration of a state of emergency issued in April in response to the spread of COVID-19 severely affected in-store sales as commercial facilities and others voluntarily suspended operations. Apparel demand also recovered slowly during the autumn and winter selling season, resulting in lower orders, revenue, and earnings. In the uniform business, orders for uniform products were slightly below the previous year, but the company focused on winning orders for sales-promotion products, resulting in higher revenue. However, logistics costs increased due to production and delivery on short cycles, resulting in a loss. Accordingly, revenue in this business was ¥5,183 million, up 0.2% year on year, and the segment loss (operating loss) was ¥38 million, compared with segment profit of ¥86 million in the same period of the previous year.」

「In the men's and women's OEM businesses, revenue and earnings declined as orders fell due to weak in-store sales resulting from the declaration of a state of emergency in response to the spread of COVID-19. In the uniform business, orders for uniform products remained broadly in line with the previous year, but the company focused on winning orders for sales-promotion products, resulting in higher revenue but lower earnings. Accordingly, revenue in this business was ¥4,062 million, up 19.6% year on year, and segment profit (operating profit) was ¥121 million, compared with segment profit of ¥132 million in the same period of the previous year.」

「In the men's and women's OEM businesses, orders declined and revenue fell due to weak in-store sales at commercial facilities and elsewhere, but earnings improved due in part to lower expenses. In the uniform business, orders for uniform products remained broadly in line with the previous year, while orders for sales-promotion products remained strong, resulting in higher revenue and earnings. Accordingly, revenue in this business was ¥2,230 million, up 46.0% year on year, and segment profit (operating profit) was ¥156 million, compared with segment profit of ¥60 million in the same period of the previous year.」

「In the men's and women's OEM businesses of the apparel business, revenue and earnings declined as orders fell due to weak in-store apparel sales, in addition to the review of low-margin projects and weaker apparel demand caused by natural disasters such as torrential rain and typhoons and the spread of COVID-19. In the uniform business, revenue and earnings declined as the company did not win as many orders as in the previous fiscal year, although it maintained a profitable trend. Accordingly, revenue in this business was ¥7,029 million, down 12.0% from the previous fiscal year, and segment profit (operating profit) was ¥94 million, compared with segment profit of ¥215 million in the previous consolidated fiscal year.」

「In the men's division of the apparel business, orders remained broadly in line with the previous year, but orders in the women's OEM division declined due to the review of low-margin projects, the reaction to the consumption tax increase, and weaker apparel demand caused by natural disasters such as torrential rain and typhoons. As a result, the apparel business recorded lower revenue and earnings. The uniform business also recorded lower revenue and earnings as the company did not win as many orders as in the same period of the previous year, although it maintained a profitable trend. As a result, revenue for the apparel business as a whole was ¥5,174 million, a decrease of ¥442 million, or 7.9%, from the same quarter of the previous year, while segment profit (operating profit) was ¥86 million, a decrease of ¥87 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥173 million.」

「In the men's division of the apparel business, orders remained broadly in line with the previous year, but orders in the women's OEM division declined as the company reviewed its acceptance of low-margin projects. As a result, the apparel business recorded lower revenue and earnings. The uniform business also recorded lower revenue and earnings as the company did not win as many orders as in the same period of the previous year. As a result, revenue for the apparel business as a whole was ¥3,396 million, a decrease of ¥500 million, or 12.8%, from the same quarter of the previous year, while segment profit (operating profit) was ¥132 million, a decrease of ¥60 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥193 million.」

「The men's business performed broadly in line with the previous year, but the women's OEM business recorded lower revenue and earnings as orders fell substantially, partly due to weak in-store sales. The uniform business also recorded lower revenue and earnings because there were no large orders like those in the same quarter of the previous year. As a result, revenue for the apparel business as a whole was ¥1,527 million, a decrease of ¥366 million, or 19.4%, from the same quarter of the previous year, while segment profit (operating profit) was ¥60 million, a decrease of ¥110 million, or 64.7%.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, revenue declined due to lower men's orders and the withdrawal from low-margin projects in the women's OEM business, but earnings improved and the businesses became profitable due to higher profit margins and lower expenses. In the uniform business of ツカモトユーエス株式会社, performance remained solid, with revenue and earnings increasing as the company continued to win orders compared with the previous year. Accordingly, revenue in this business was ¥7,989 million, an increase of ¥225 million, or 2.9%, from the previous consolidated fiscal year, while segment profit (operating profit) was ¥215 million, an improvement of ¥145 million from the previous consolidated fiscal year, which recorded segment profit (operating profit) of ¥70 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, revenue declined due to lower men's orders and the withdrawal from low-margin projects in the women's OEM business, but earnings improved and the businesses became profitable due to higher profit margins and lower expenses. In the uniform business of ツカモトユーエス株式会社, performance remained solid, with revenue and earnings increasing as the company continued to win orders, as it had in the same quarter of the previous year. As a result, revenue for the apparel business as a whole was ¥5,616 million, a decrease of ¥60 million, or 1.1%, from the same quarter of the previous year, while segment profit (operating profit) was ¥173 million, an improvement of ¥135 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥38 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, revenue declined due to lower men's orders and the withdrawal from low-margin projects in the women's OEM business, but earnings improved and the businesses became profitable due to higher profit margins and lower expenses. In the uniform business of ツカモトユーエス株式会社, performance remained solid, with revenue and earnings increasing as the company continued to win orders, as it had in the same quarter of the previous year. As a result, revenue for the apparel business as a whole was ¥3,897 million, a decrease of ¥207 million, or 5.1%, from the same quarter of the previous year, while segment profit (operating profit) was ¥193 million, an improvement of ¥75 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥117 million.」

「In the men's and OEM/women's textile businesses of ツカモトアパレル株式会社, orders declined in both businesses, but higher profit margins and lower expenses resulted in lower revenue but a return to profitability. In the uniform business of ツカモトユーエス株式会社, revenue and earnings increased substantially, partly because there were large orders compared with the same quarter of the previous year. As a result, revenue for the apparel business as a whole was ¥1,894 million, an increase of ¥436 million, or 30.0%, from the same quarter of the previous year, while segment profit (operating profit) was ¥171 million, an improvement of ¥245 million from the same quarter of the previous year, which recorded a segment loss (operating loss) of ¥73 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, orders declined in both businesses, but profit margins improved and expenses were reduced, resulting in lower revenue but a return to profitability. In the uniform business of ツカモトユーエス株式会社, revenue declined as orders were somewhat lower than in the previous year, but profit margins improved and remained broadly at the previous year's level.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, the company focused on offsetting the decline in men's orders through the women's OEM business, but revenue and earnings declined due in part to lower profit margins. In the uniform business of ツカモトユーエス株式会社, orders were somewhat lower than in the same quarter of the previous year. Although the business maintained a profitable trend, revenue and earnings declined. As a result, revenue for the apparel business as a whole was ¥5,677 million, a decrease of ¥877 million, or 13.4%, from the same quarter of the previous year, while segment profit (operating profit) was ¥38 million, a decrease of ¥76 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥114 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, the company focused on offsetting the decline in men's orders through the women's OEM business, but revenue and earnings declined due in part to lower profit margins. In the uniform business of ツカモトユーエス株式会社, sales declined as orders were somewhat lower than in the same quarter of the previous year, but earnings increased as profit margins improved. As a result, revenue for the apparel business as a whole was ¥4,104 million, a decrease of ¥506 million, or 11.0%, from the same quarter of the previous year, while segment profit (operating profit) was ¥117 million, an improvement of ¥49 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥68 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, the company focused on offsetting the decline in men's orders through the women's OEM business, but revenue and earnings declined due in part to lower profit margins. In the uniform business of ツカモトユーエス株式会社, there were no large orders compared with the same quarter of the previous year, resulting in lower revenue and earnings. As a result, revenue for the apparel business as a whole was ¥1,457 million, a decrease of ¥809 million, or 35.7%, from the same quarter of the previous year, while the segment loss (operating loss) was ¥73 million, a decline of ¥88 million from the same quarter of the previous year, which recorded segment profit (operating profit) of ¥14 million.」

「In the men's and women's OEM businesses of ツカモトアパレル株式会社, revenue declined substantially as orders fell, but earnings improved due in part to a review of production sites and lower expenses. In the uniform business of ツカモトユーエス株式会社, the number of large orders increased, resulting in higher revenue and earnings. Accordingly, revenue was ¥8,225 million, down 9.5% from the previous fiscal year, and segment profit (operating profit) was ¥70 million, compared with a segment loss of ¥21 million in the previous consolidated fiscal year.」

「In the men's and OEM/women's textile businesses of ツカモトアパレル株式会社, revenue declined substantially as orders fell, but earnings improved due in part to a review of production sites and lower expenses. In the uniform business of ツカモトユーエス株式会社, the number of large orders increased, resulting in higher revenue and earnings. As a result, revenue for the apparel business as a whole was ¥6,555 million, a decrease of ¥477 million, or 6.8%, from the same quarter of the previous year, while segment profit (operating profit) was ¥114 million, an improvement of ¥148 million from the same quarter of the previous year, which recorded a segment loss (operating loss) of ¥33 million.」

「In the men's and OEM/women's textile businesses of ツカモトアパレル株式会社, revenue declined as orders for spring and summer products fell, but earnings improved due in part to a review of production sites and lower expenses. In the uniform business of ツカモトユーエス株式会社, the number of large orders increased, resulting in higher revenue and earnings. As a result, revenue for the apparel business as a whole was ¥4,610 million, an increase of ¥337 million, or 7.9%, from the same quarter of the previous year, while segment profit (operating profit) was ¥68 million, an improvement of ¥113 million from the same quarter of the previous year, which recorded a segment loss (operating loss) of ¥44 million.」

「In the men's and OEM/women's textile businesses of ツカモトアパレル株式会社, revenue declined as orders for spring and summer products fell, but earnings improved due in part to a review of production sites and lower expenses. In the uniform business of ツカモトユーエス株式会社, the number of large orders increased, resulting in higher revenue and earnings, and the business returned to profitability.」

「In the apparel business, the men's business and women's OEM business of ツカモトアパレル株式会社 will actively develop new sales channels in addition to existing channels, as well as new products for those channels, and work to rebuild the business portfolio. In the uniform business of ツカモトユーエス株式会社, in addition to manufacturing and selling existing uniforms, the company will propose new services for their management and operation, with the aim of establishing a highly profitable business structure.」