Business Portfolio Optimization

「「組み方・商品・売り方・考え方」の４つの改革を軸として、事業ポートフォリオの最適化や高付加価値商品||||開発、ＥＣ強化、ＡＩ・データ活用等を推進し、収益性および資本効率の向上に取り組んでまいります。」

「First, under the heading “Change the way we are organized,” we will redefine the business portfolio. We will classify each business into 4 categories: growth, stable, improvement, and revitalization, and clarify the role and earnings responsibility of each.」

「Although the operating environment remains challenging, the Group is decisively reviewing the portfolio of each business to concentrate resources on highly profitable businesses and is focusing on building the foundation for business structural reform by strengthening its organizational structure.」

「The Group will decisively review its business portfolio to concentrate resources on highly profitable businesses, strengthen its organizational structure, and focus on building the foundation for business structural reform.」

「The Group worked to improve its gross profit margin by reviewing procurement costs and selling prices and reducing selling, general and administrative expenses. However, lower orders for new projects and OEM products and weak TV and other direct-response sales had a significant impact, resulting in lower revenue and a wider operating loss.」

「Under these conditions, despite the continuing impact of yen depreciation, the Group reviewed procurement costs and selling prices, worked to improve its gross profit margin, and reduced selling, general and administrative expenses. However, lower orders in some businesses and weak TV and other direct-response sales had a significant impact, resulting in a substantial decline in revenue.」

「Under these conditions, while the impact of yen depreciation remained, the Group reviewed procurement prices, worked to improve its gross profit margin, and reduced selling, general and administrative expenses. However, lower order value in some businesses and withdrawal from a sales business with a high-cost structure had a significant impact, resulting in lower revenue than in the first 9 months of the previous fiscal year.」

「Under these conditions, despite the continued impact of yen depreciation, the Group reviewed procurement prices, worked to improve its gross profit margin, and reduced selling, general and administrative expenses. However, lower order value in some businesses and withdrawal from a sales business with a high-cost structure had a significant impact, resulting in lower revenue than in the first 6 months of the previous fiscal year.」

「Under these conditions, sales in the traditional apparel business decreased as the Group continued to withdraw from unprofitable events. Sales in the Western apparel business increased as new projects grew. Sales in the home furnishings business fell sharply, partly because special demand such as bulk deliveries of spring and summer products in the previous fiscal year disappeared. Sales in the health and lifestyle business decreased due to weak TV and other direct-response sales.」

「The Group adopted 5 basic policies: ① direct proposals to consumers, ② returning to a growth and expansion strategy, ③ making all sales divisions profitable, ④ practicing efficient management and improving productivity, and ⑤ strengthening core businesses and promoting new business development. It sought to transform the company-wide portfolio and optimize each business by clearly distinguishing offensive and defensive initiatives, promote the development of new business areas, and halt the contraction of its business scale.」

「Under these conditions, sales in the traditional apparel business decreased despite higher sales resulting from progress in balancing measures to prevent COVID-19 infections with economic activity, partly because the Group also withdrew from unprofitable events. Sales in the Western apparel business remained approximately at the previous year's level, supported by new projects. In the home furnishings business, the Ralph Lauren Home Collection license agreement ended, and the business changed from retail sales to a product supply business, resulting in lower sales. In the health and lifestyle business, sales decreased partly because TV and other direct-response sales performed poorly.」

「In the traditional apparel business, sales increased as progress was made in balancing measures to prevent COVID-19 infections with economic activity, and the number of events increased from the previous fiscal year. In the Western apparel business, sales decreased because new projects declined. In the home furnishings business, the Ralph Lauren Home Collection license agreement ended, and the business changed from retail sales to a product supply business, resulting in lower sales. In the health and lifestyle business, sales decreased partly because TV and other direct-response sales performed poorly.」

「The Group adopted 5 basic policies: ① direct proposals to consumers, ② returning to a growth and expansion strategy, ③ making all sales divisions profitable, ④ practicing efficient management and improving productivity, and ⑤ strengthening core businesses and promoting new business development. With a clear distinction between offensive and defensive initiatives, it sought to optimize each business and established a cross-divisional new business unit to promote the development of new business areas as a company-wide initiative and halt the contraction of its business scale.」

「The Group sought to transform its company-wide portfolio and optimize each business by clearly distinguishing offensive and defensive initiatives, and established a cross-divisional new business unit to promote the development of new business areas as a company-wide initiative and halt the contraction of its business scale.」

「Under these conditions, revenue in the traditional apparel business fell sharply due to the application of the revenue recognition accounting standard and related standards. Revenue in the Western apparel business also fell sharply due to lower orders for hygiene products and the impact of production delays in ASEAN. In the home furnishings business, although large commercial facilities were again requested to close or shorten operating hours following the declaration and application of priority preventive measures, sales increased because the impact was less severe than in the same period of the previous year.」

「In the traditional apparel business, revenue fell sharply due to the application of the revenue recognition accounting standard and related standards, but earnings improved partly because the number of events increased and costs were reduced. In the Western apparel business, revenue fell sharply due to lower orders for hygiene products and production delays in Vietnam. In the home furnishings business, although large commercial facilities were again requested to close or shorten operating hours following the declaration and application of the measures, sales increased because the impact was less severe than in the same period of the previous year.」

「Although the traditional apparel and home furnishings businesses were affected by renewed requests for large commercial facilities to close or shorten operating hours following the declaration of a state of emergency and the application of priority preventive measures, the impact was less severe than in the previous fiscal year and sales increased. Sales in the Western apparel business fell sharply, partly because orders for hygiene products decreased.」

「The health and lifestyle business recorded higher revenue and earnings as retail sales at GMS stores and consumer electronics retailers were affected by COVID-19, while EC channels and TV shopping performed well amid increased stay-at-home demand. However, sales in the traditional apparel and home furnishings businesses fell sharply because many department stores, specialty stores, and other major sales channels were closed for approximately 2 months following the declaration of a state of emergency. In the Western apparel business, sales remained approximately at the previous year's level as the Group focused on securing orders for products used in sales promotions, but higher logistics costs associated with short production and delivery cycles resulted in an operating loss.」

「Under these conditions, the Group focused on securing orders for products used in sales promotions in the Western apparel business, resulting in higher revenue, but operating profit decreased slightly due in part to higher logistics costs associated with short production and delivery cycles. In the health and lifestyle business, retail sales at GMS stores and consumer electronics retailers were affected by COVID-19, but EC channels and TV shopping remained firm due to increased stay-at-home demand, with revenue and profit both remaining at the previous year's levels. However, sales in the traditional apparel and home furnishings businesses fell sharply because many department stores, specialty stores, and other major sales channels were closed for approximately 2 months following the declaration of a state of emergency, resulting in lower sales for the sales divisions overall.」

「Sales increased in the Western apparel and health and lifestyle businesses as a result of measures including stricter delivery-date management for products already ordered and stronger sales of increased inventories. However, sales decreased in the traditional apparel and home furnishings businesses because many department stores, specialty stores, and other major sales channels were closed for approximately 2 months following the declaration of a state of emergency. Overall sales in the sales divisions increased only slightly.」

「In the traditional apparel business of Tsukamoto Ichida Co., Ltd., the Group withdrew from unprofitable events, worked to improve the precision of event operations management, and sought to reduce fixed and event-related expenses. However, the spread of COVID-19 reduced attendance at events, and scheduled events were postponed or cancelled, resulting in lower revenue and earnings. In the home furnishings business, the Group narrowed down unprofitable stores and changed store formats, resulting in lower revenue, but gross profit increased following the opening of new directly operated stores and reductions in procurement costs. Earnings also improved through cost reductions, and the business became profitable. In the health and lifestyle business, revenue increased slightly, mainly from water purifiers and existing healthcare equipment, but higher promotional expenses, lower margins on existing healthcare equipment, and lost spring-season sales opportunities caused by delays in producing new products following the spread of COVID-19 in China resulted in a loss.」

「In the traditional apparel business of Tsukamoto Ichida Co., Ltd., revenue decreased following the withdrawal from unprofitable events, but earnings improved through efforts to enhance the precision of event operations management and reduce costs by cutting fixed and event-related expenses. Revenue was ¥2,033 million, down ¥301 million, or 12.9%, from the same quarter of the previous year. The segment loss (operating loss) was ¥114 million, an improvement of ¥53 million from the same quarter of the previous year, when the segment loss (operating loss) was ¥167 million. In the men's division of the apparel business, order value remained at the previous year's level, while order value in the women's and OEM divisions decreased due to the reassessment of low-margin projects, the backlash from the consumption tax increase, and a decline in apparel demand caused by natural disasters including torrential rain and typhoons. As a result, the apparel business recorded lower revenue and earnings. In the home furnishings business, the Group opened new directly operated stores, narrowed down unprofitable stores, and changed store formats. Revenue remained at the previous year's level, but earnings improved and the business returned to profitability due to lower procurement costs and cost reductions. In the health and lifestyle business, revenue increased, mainly from water purifiers and existing healthcare equipment, but higher promotional expenses and lower margins on existing healthcare equipment weighed on earnings, resulting in higher revenue but lower earnings.」

「In the traditional apparel business of Tsukamoto Ichida Co., Ltd., revenue decreased following the withdrawal from unprofitable events, but earnings improved through efforts to enhance the precision of event operations management and reduce costs by cutting fixed and event-related expenses. In the men's division of the apparel business, order value remained at the previous year's level, while order value in the women's and OEM divisions decreased as orders for low-margin projects were reassessed. As a result, the apparel business recorded lower revenue and earnings. In the home furnishings business, the Group opened new directly operated stores, narrowed down unprofitable stores, and changed store formats. Revenue remained at the previous year's level, but earnings improved through lower procurement costs and cost reductions, and the business returned to profitability. In the health and lifestyle business, revenue increased substantially, mainly from water purifiers and existing healthcare equipment, but profit did not increase substantially because margins on existing healthcare equipment declined. The business nevertheless recorded higher revenue and earnings.」

「Under these conditions, the Group continued efforts to rebuild its management platform, aiming to evolve and enhance business value through the establishment of core businesses, the rehabilitation of unprofitable businesses, and the establishment of new business areas, while improving Group-wide management capabilities, reforming the workplace culture, and strengthening its financial strategy.」

「Against this backdrop, the Group continues working to rebuild its management foundation by pursuing the evolution and enhancement of business value through establishing core businesses, rebuilding unprofitable businesses, and establishing new business areas, while enhancing Group management capabilities, reforming the workplace culture, and strengthening its financial strategy.」

「However, because efforts in the existing businesses prioritized securing ordinary profit and development of new businesses did not proceed as initially planned, revenue is expected to fall below the target indicator set in the medium-term management plan.」

「For the traditional apparel businesses of Tsukamoto Co., Ltd., Ichida Co., Ltd. and Tsukamoto Ichida Co., Ltd., Tsukamoto Ichida Co., Ltd. was established in July 2017 as sales management and organizational operations were streamlined, and operations began under the new structure on 1 October. However, withdrawal from unprofitable events and measures to expand sales outside events did not progress as planned, resulting in lower revenue and earnings.」

「For the traditional apparel businesses of Tsukamoto Co., Ltd. and Ichida Co., Ltd., Tsukamoto Ichida Co., Ltd. was established in July 2017, and efforts were made to streamline sales management and organizational operations in preparation for starting under a new structure on 1 October. As a result of efforts including withdrawal from unprofitable events and measures to expand sales outside events, revenue decreased but the business returned to profitability.」

「As a result of efforts including cost reductions through the streamlining of sales management and organizational operations, withdrawal from unprofitable events, and measures to expand sales outside events, revenue decreased but earnings improved. Revenue was ¥890 million, down ¥254 million, or 22.2%, from the same quarter of the previous year. The segment loss (operating loss) was ¥46 million, an improvement of ¥24 million from the same quarter of the previous year, when the segment loss (operating loss) was ¥70 million.」

「As the basic strategy for the operating divisions, the Group will pursue the “establishment of core businesses,” “rebuilding of unprofitable businesses,” and “establishment of new business areas,” while promoting the evolution and enhancement of business value.」

「As a result of pursuing expense reductions through the rationalization of sales administration and organizational operations, withdrawing from unprofitable events, and implementing measures to expand sales outside events, sales declined but earnings improved. As a result, sales were ¥3.797 billion, down ¥606 million, or 13.8%, from the same quarter of the previous year, while the segment loss (operating loss) was ¥44 million, an improvement of ¥183 million from the same quarter of the previous year, when the segment loss (operating loss) was ¥228 million.」

「As a result of pursuing expense reductions through the rationalization of sales administration and organizational operations, withdrawing from unprofitable events, and implementing measures to expand sales outside events, sales declined but earnings improved. As a result, sales were ¥2.498 billion, down ¥322 million, or 11.4%, from the same quarter of the previous year, while the segment loss (operating loss) was ¥41 million, an improvement of ¥158 million from the same quarter of the previous year, when the segment loss (operating loss) was ¥200 million.」

「As a result of pursuing expense reductions through the rationalization of sales administration and organizational operations, withdrawing from unprofitable events, and implementing measures to expand sales outside events, sales declined but earnings improved.」

「As the basic strategy for the operating divisions and toward optimizing the business portfolio, the Group will pursue the “establishment of core businesses,” “rebuilding of unprofitable businesses,” and “establishment of new business areas,” while promoting the evolution and enhancement of business value.」