Improving Gross Margins by Reviewing Baby Plaza’s Pricing and Curbing Discounts
First written in FY2018-Q1. 13 of 28 entries say "Worsened", first in FY2019. Latest entry: 2026-08-05.
Kimuratan moved to the "Worse" side of this theme in 2019, 6 years before the typical company in this theme (2025).
The whole theme swung hardest in 2025: 5 of 36 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「As a result of actively disposing of inventory, inventory levels steadily declined. However, the decline in gross profit margin limited the improvement in segment loss to a modest level.」
Inventory levels declined, but the decline in gross profit margin associated with active inventory disposal continued to constrain earnings improvement in the apparel business. - FY2026WorsenedAnnual report
「The apparel business reported a segment loss of ¥123 million (a loss of ¥97 million in the same period of the previous year) due to lower revenue, a deterioration in the cost ratio caused by the weaker yen, and a decline in the gross margin resulting from strengthened sales of inventory, resulting in a wider loss.」
The deterioration in the cost ratio caused by the weaker yen and the decline in the gross margin resulting from strengthened inventory sales expanded the apparel business's segment loss from ¥97 million to ¥123 million. - FY2026-H1WorsenedAnnual report
「Segment profit was a loss of ¥57 million (a loss of ¥52 million in the same period of the previous year) due to lower revenue and a decline in the gross margin resulting from strengthened sales of inventory, resulting in a wider loss.」
The gross margin declined as a result of strengthened inventory sales, expanding the apparel business's segment loss from ¥52 million in the same period of the previous year to ¥57 million. - FY2025WorsenedAnnual report
「Segment profit was a loss of ¥97 million (a loss of ¥86 million in the same period of the previous year). Although selling, general and administrative expenses fell by ¥23 million as a result of lower expenses following store closures and reductions in other fixed costs, the gross profit margin fell 7.2 percentage points from the previous fiscal year due to the continuing weakening of the yen and aggressive sales of inventory.」
Although the company reduced fixed costs and advanced inventory sales, the apparel business's gross profit margin fell 7.2 percentage points due to the weaker yen and aggressive inventory sales, expanding the segment loss from ¥86 million to ¥97 million. - FY2024AdvancedAnnual report
「In the apparel business, the gross profit margin improved 11.3 percentage points year on year to 42.7% as inventory disposal ran its course and markdown sales returned to normal.」
The company-wide gross profit margin improved 11.3 percentage points year on year to 42.7% as inventory disposal ran its course and markdown sales returned to normal. - FY2024-Q2AdvancedAnnual report
「The gross profit margin improved 12.6 percentage points year on year to 45.2%. The main reason was that inventory disposal in the apparel business had run its course and markdown sales had returned to normal.」
The gross profit margin improved 12.6 percentage points year on year to 45.2% as inventory disposal ran its course and markdown sales returned to normal. - FY2023WorsenedAnnual report
「In the apparel business, in addition to higher costs as the yen weakened, the company made the complete clearance of carried-over inventory a priority and substantially deepened discounts at store-closing sales to clear the inventory. As a result, the gross profit margin fell 11.0 percentage points year on year to 31.4%,」
Higher costs caused by the weaker yen and deep discounts at store-closing sales caused the apparel business's gross margin to fall 11.0 percentage points year on year to 31.4%. - FY2023-Q3WorsenedAnnual report
「In the apparel business, in addition to higher costs as the yen weakened, the company made the complete clearance of carried-over inventory a priority and substantially deepened discounts at store-closing sales to clear the inventory. As a result, the gross profit margin fell 16.8 percentage points year on year to 30.8%,」
Higher costs caused by the weaker yen and deep discounts at store-closing sales caused the apparel business's gross margin to fall 16.8 percentage points year on year to 30.8%. - FY2023-Q2WorsenedAnnual report
「In the apparel business, in addition to higher costs as the yen weakened, the company made the complete clearance of carried-over inventory a priority and substantially deepened discounts at store-closing sales to clear the inventory. As a result, the gross profit margin fell 13.9 percentage points year on year to 33.3%,」
Higher costs caused by the weaker yen and deep discounts at store-closing sales caused the apparel business's gross profit margin to fall 13.9 percentage points year on year to 33.3%. - FY2023-Q1WorsenedAnnual report
「In the apparel business, the gross profit margin deteriorated by 6.3 percentage points due to higher costs as the yen weakened and increased markdown sales at store-closing sales to clear inventory. The company-wide gross profit margin fell 5.7 percentage points to 43.1%, but gross profit increased 6.9% year on year to ¥474 million as a result of higher revenue.」
Higher costs caused by the weaker yen and increased markdown sales at store-closing sales caused the apparel business's gross margin to deteriorate by 6.3 percentage points year on year, while the company-wide gross margin fell to 43.1%. - FY2022WorsenedAnnual report
「In the apparel business, the company worked to improve its gross profit margin by reducing manufacturing costs and controlling markdown rates. However, higher costs due to yen depreciation and increased markdown sales resulting from weak sales prevented an improvement. The gross profit margin deteriorated by 4.0 percentage points year on year in the apparel business and by 3.7 percentage points overall.」
Although the company worked to reduce costs and contain the downgrade rate, the gross margin in the apparel business deteriorated by 4.0 percentage points year on year due to the weaker yen and an increase in markdown sales caused by poor sales. - FY2022-Q3WorsenedAnnual report
「In the apparel business, the company worked to reduce manufacturing costs but was unable to achieve a substantial reduction in the downgrade rate. As a result, the gross profit margin of the company's apparel business improved by only 1.7 percentage points year on year.」
Although the company worked to reduce manufacturing costs, it was unable to achieve a substantial reduction in the downgrade rate, limiting the improvement in the gross margin to 1.7 percentage points year on year. - FY2022-Q2AdvancedAnnual report
「In the apparel business, efforts to reduce manufacturing costs and the downgrade rate resulted in a 5.1-percentage-point year-on-year improvement in the gross profit margin of the company's apparel business and a 1.6-percentage-point improvement on a consolidated basis, including wholesale sales.」
Lower manufacturing costs and a lower downgrade rate improved the apparel business's gross margin by 5.1 percentage points year on year, or by 1.6 percentage points on a consolidated basis. - FY2022-Q1AdvancedAnnual report
「The gross profit margin also fell 0.7 percentage points to 48.8% (49.5% in the same period of the previous year). However, in the apparel business, efforts to reduce manufacturing costs and the downgrade rate resulted in a 3.3-percentage-point improvement for the group as a whole and a 10.0-percentage-point improvement for the company on a standalone basis.」
Although the overall gross margin declined, the apparel business reported improvements of 3.3 percentage points for the group as a whole and 10.0 percentage points for the company on a standalone basis, owing to lower manufacturing costs and a lower downgrade rate. - FY2021AdvancedAnnual report
「In the apparel business, the gross profit margin increased 0.5 percentage points year on year to 48.1% on a cumulative basis, although the increase was limited by the significant impact of expanded markdown sales to clear spring merchandise during the COVID-19 pandemic. In the second half, however, cost reductions from the autumn merchandise season onward improved the margin by 2.6 percentage points.」
The full-year gross margin in the apparel business improved by only 0.5 percentage points due to the impact of markdown sales, but improved by 2.6 percentage points in the second half as a result of cost reductions from the autumn merchandise season onward. - FY2021-Q3Cumulative decline alongside quarterly improvementAnnual report
「In the apparel business, the gross profit margin improved during the third quarter due to the effects of cost reductions. However, on a cumulative basis, the impact of expanded markdown sales, conducted mainly to accelerate the clearance of spring merchandise during the COVID-19 pandemic, was significant, and the margin fell 1.3 percentage points year on year to 48.7%.」
The gross margin improved in the third quarter due to cost reductions, but on a cumulative basis it fell 1.3 percentage points year on year to 48.7% because of expanded markdown sales of spring merchandise. - FY2021-Q2WorsenedAnnual report
「In the apparel business, the gross profit margin fell 2.2 percentage points year on year to 46.7% because markdown sales were expanded to promote the clearance of spring merchandise during the COVID-19 pandemic.」
The apparel business expanded markdown sales to clear spring merchandise, causing its gross profit margin to fall 2.2 percentage points year on year to 46.7%. - FY2021-Q1WorsenedAnnual report
「The gross margin was 49.5%, down 1.3 percentage points from the same period of the previous fiscal year, as discount rates were increased to promote the sale of spring merchandise while customer traffic at stores declined substantially.」
With customer traffic declining, the company increased markdowns to clear spring merchandise, causing the gross profit margin to fall 1.3 percentage points year on year to 49.5%. - FY2020AdvancedAnnual report
「In the existing apparel business, improvements from reducing the manufacturing cost ratio and carried-over inventory resulted in a 2.2 percentage-point improvement in the gross margin from the same period of the previous fiscal year.」
The gross margin in the existing apparel business improved 2.2 percentage points year on year due to the lower manufacturing cost ratio and reduced carried-over inventory. - FY2020-Q3RestatedAnnual report
「In addition to limiting markdown rates to improve the gross margin, we will work to strengthen full-price sales.」
In addition to measures to improve the gross margin by limiting markdown rates, we continue to strengthen full-price sales. - FY2019WorsenedAnnual report
「Although we worked to improve the manufacturing cost ratio, factors reducing the gross margin included intensified sales of carried-over inventory and discounting to clear fall/winter merchandise. As a result, the gross margin was 48.7%, down 0.7 percentage points from the previous fiscal year, and did not improve.」
Although we reviewed pricing and cost management, sales of carried-over inventory and discounted fall/winter merchandise weighed on results, causing the gross margin to decline 0.7 percentage points to 48.7%. - FY2019-Q3RestatedAnnual report
「Meanwhile, at Baby Plaza, our largest business format, we have focused on restoring profitability by improving the gross margin rather than primarily expanding sales.」
For Baby Plaza, we continue to pursue a policy of restoring profitability by prioritizing gross-margin improvement over sales growth. - FY2019-Q2RestatedAnnual report
「Meanwhile, at Baby Plaza, our largest business format, we have focused on restoring profitability by improving the gross margin rather than primarily expanding sales.」
At Baby Plaza, we continue to pursue a policy of restoring profitability by prioritizing gross-margin improvement over sales growth. - FY2019-Q1RestatedAnnual report
「Meanwhile, at Baby Plaza, our largest business format, we have focused on restoring profitability by improving the gross margin rather than primarily expanding sales.」
At Baby Plaza, we prioritize gross-margin improvement over sales growth and continue to implement measures to restore profitability. - FY2018RestatedAnnual report
「At Baby Plaza, we sought to increase sales by reviewing the pricing of core products and further expanding our range of general merchandise, while working to improve profitability by limiting discount sales and maintaining and improving the gross margin.」
We continue to pursue measures to improve the gross margin and profitability by reviewing core-product pricing, expanding the general-merchandise range and limiting discounts. - FY2018-Q3RestatedAnnual report
「At Baby Plaza, we sought to increase sales by reviewing the pricing of core products and further expanding our range of general merchandise, while working to improve profitability by limiting discount sales and maintaining and improving the gross margin.」
We continue to pursue measures to improve the gross margin and profitability by reviewing core-product pricing, expanding the general-merchandise range and limiting discounts. - FY2018-Q2RestatedAnnual report
「At Baby Plaza, we have sought to increase sales by reviewing the pricing of core products and further expanding our range of general merchandise, while improving profitability by limiting discount sales and maintaining and improving the gross margin.」
We continue to pursue measures to improve the gross margin and profitability by reviewing core-product pricing, expanding the general-merchandise range and limiting discounts. - FY2018-Q1First statedAnnual report
「At Baby Plaza, we have sought to increase sales by reviewing the pricing of core products and further expanding our range of general merchandise, while improving profitability by limiting discount sales and maintaining and improving the gross margin.」
Specific measures to improve Baby Plaza's sales and profitability included reviewing core-product pricing, expanding the general-merchandise range and limiting discounts.