Market Creation through a Multi-Brand Strategy

「For its core brand, THE NORTH FACE, the company has made a return to the brand's essence as a performance brand the central pillar of its management policy and has strengthened its mountain-performance business, using the 25th anniversary of SUMMIT SERIES as an opportunity. By category, hard goods and footwear performed well, with new lines getting off to a stronger-than-planned start alongside the expansion of directly operated stores.」

「Its core brand, THE NORTH FACE, recorded sales above the same period of the previous year in both apparel and gear, as demand recovered, particularly at directly operated stores.」

「For THE NORTH FACE, the company is accelerating expansion into adjacent categories such as women's products, children's products, and footwear while maintaining the earnings base of its core outdoor apparel business, and is pursuing further growth opportunities.」

「During the interim consolidated accounting period, a full recovery in demand for mountaineering drove sales, while demand for summer products remained firm. Sales of running products also increased year on year against the backdrop of growing health consciousness and the spread of active lifestyles. In addition, strong online advance orders for standard products such as down jackets contributed to the expansion of e-commerce sales. Items available for purchase only in Japan, including those offered by THE NORTH FACE, continued to receive strong support from consumers in Japan and overseas, enabling the company to capture inbound demand. As a result, revenue for the interim consolidated accounting period was ¥53,367 million, up 4.4% year on year.」

「Through the multibrand strategy and the refinement of its demand-driven business, we will establish a presence in the lifestyle and fashion markets beyond the sports market.」

「As a result, the Group's performance remained in line with the initial outlook not only for its core THE NORTH FACE brand but also for its other athletic brands. For the nine months ended the third quarter, revenue was ¥94,832 million, up 9.3% year on year.」

「The easing of restrictions on activities increased revenue at many brands, while the recovery in inbound demand led to strong sales at directly operated stores. As a result, for the six months ended the second quarter, revenue was ¥51,096 million, up 12.8% year on year; operating profit was ¥6,070 million, up 15.0%; ordinary profit was ¥9,180 million, up 23.2%; and profit attributable to owners of the parent was ¥7,323 million, up 25.3%.」

「Against these trends, the company's own Goldwin brand gained support from inbound tourists and successfully captured demand from younger customers, including Generation Z, increasing its customer base beyond outdoor enthusiasts. As a result, revenue was ¥23,150 million, up 9.7% year on year and a record high for a first quarter.」

「Fueled by the recovery in market conditions resulting from the easing of restrictions on activities related to COVID-19 and the increase in visitors to Japan, the company achieved its highest-ever results for the nine months ended the third quarter. In particular, sales of down jackets and fleece products performed well from the start of the fall/winter season, supported by promotions for THE NORTH FACE “Nu psee Jacket,” which marked its 30th anniversary since launch. As the number of visitors to Japan increased following the easing of border-control measures from 11 October, Goldwin announced the first collection under its environmentally conscious new project, “Goldwin 0,” which also contributed to developing new customer segments.」

「The easing of restrictions on activities increased demand for travel and other outings, expanding sales at the core THE NORTH FACE brand across a range of products including apparel, backpacks, and shoes. Speedo also expanded beyond swimwear into training wear for fitness gyms and other uses, and multiple brands showed signs of recovery from the COVID-19 pandemic. As a result, revenue for the six months ended the second quarter was ¥45,309 million, up 18.6% year on year.」

「In the outdoor-related business operated under brands including THE NORTH FACE, lifestyle apparel for children and women performed steadily in addition to high-performance apparel. A broad range of goods, including backpacks and shoes, also posted solid growth, resulting in revenue of ¥21,099 million for the three months ended the first quarter, up 23.5% year on year.」

「Sales of core products such as high-loft down jackets with excellent insulation and fleece products exceeded the previous year as a nationwide cold wave arrived, resulting in revenue of ¥73,782 million, up 6.6% year on year.」

「The company developed new customer segments for camping as an activity that avoids crowds and for casual wear while working from home, while also steadily capturing demand for outdoor sports such as golf and running. As a result, revenue was ¥17,078 million, up 40.0% year on year.」

「We will create new markets that cannot be developed through a single brand, implement a multibrand strategy by category, and strengthen our proposals for sports styles. We will also establish our brands and enhance their presence in the lifestyle and fashion markets, extending beyond the sports market.」

「The outdoor-related business including The North Face and Helly Hansen achieved a record high, helped by the growing trend of new specialty-store openings and expanded floor space for outdoor products at sporting-goods mass retailers, in addition to directly operated stores.」

「Although the outdoor brands including The North Face and Helly Hansen recorded lower revenue because mountaineering and outdoor events were cancelled, they captured increased demand arising from the “new lifestyle,” including demand for camping wear, and performed above the revised plan announced on 6 August.」

「Although the outdoor brands including The North Face and Helly Hansen were affected by the cancellation of mountaineering activities and sporting events, they captured increased demand arising from the “new lifestyle,” including at-home training and running, as well as camping nearby, limiting the decline in revenue compared with the initial outlook announced on 14 May.」

「Total revenue increased by ¥12,965 million year on year, as the strong performance of the outdoor brands significantly drove company-wide revenue.」

「Although consolidated revenue was affected by the consumption tax rate increase in October and the mild winter, product and sales policies centered on in-store execution proved effective, and strong performance continued, led by The North Face brand. In addition, in-store sales of the Canterbury brand remained strong after the Rugby World Cup 2019 Japan ended, resulting in consolidated revenue increasing substantially by ¥12,136 million year on year.」

「The North Face sustained strong sales across a broad range of channels, including directly operated stores, e-commerce, and wholesale stores, resulting in a substantial increase in revenue year on year. Sales of replica jerseys for the Japan national team at the Rugby World Cup 2019 Japan, which opened in September, were also extremely strong, and sales of Canterbury products reached a record high for the first half.」

「Total revenue increased by ¥3,255 million year on year, as the continued strong performance of the outdoor brands drove company-wide revenue.」

「Outdoor brands including The North Face and Helly Hansen continued to post strong fall/winter sales following their strong spring/summer performance. In particular, sales of downwear and cold-weather accessories at stores accelerated sharply as temperatures fell from mid-November, resulting in revenue increasing by ¥11,932 million year on year.」

「Consolidated revenue increased by ¥4,645 million year on year as sales of spring/summer products from outdoor brands including The North Face and Helly Hansen progressed steadily, while initial sales of fall/winter products also performed well.」

「Sales of spring/summer products from outdoor brands including The North Face and Helly Hansen remained extremely strong, particularly at directly operated stores, resulting in a substantial increase in revenue year on year. Sales of athletic brands including ellesse and DANSKIN also remained firm, and total revenue increased by ¥2,437 million year on year.」

「Sales of outdoor brands The North Face and Helly Hansen remained extremely strong through both the spring/summer and fall/winter seasons, with sales at directly operated stores in particular expanding steadily and resulting in a substantial increase in revenue year on year. Total revenue increased by ¥9,517 million year on year, as strong performance by the outdoor brands significantly drove company-wide revenue.」

「Outdoor brands including The North Face and Helly Hansen continued to perform extremely well in fall/winter product sales from the beginning of the season, following their strong spring/summer performance. In particular, sales of cold-weather apparel such as downwear and cold-weather accessories accelerated sharply as temperatures fell from mid-October, resulting in a substantial ¥7.1 billion increase in revenue year on year.」

「In the six months ended the second quarter, revenue increased substantially as sales of spring/summer products from outdoor brands including The North Face and Helly Hansen remained extremely strong, particularly at directly operated stores, while advance sales supported by the early launch of fall/winter products also progressed smoothly. Athletic brands including DANSKIN and Canterbury of New Zealand also recorded higher sales, resulting in total revenue increasing by ¥2,290 million year on year.」

「Outdoor brands including The North Face and Helly Hansen posted a substantial increase in revenue as sales of spring/summer products remained extremely strong, particularly at directly operated stores. Athletic brands including ellesse, DANSKIN, and Canterbury of New Zealand also recorded higher sales, resulting in total revenue increasing by ¥1,704 million year on year.」

「We will create new markets that cannot be developed through a single brand, implement a multibrand strategy by category, and strengthen our proposals for sports styles.」

「Helly Hansen (Norway) — trademark rights in Japan for “Helly Hansen / HELLY HANSEN” — ¥3 billion — 31 December 2016」

「Sales of spring/summer products from outdoor brands, including The North Face and Helly Hansen, were strong, particularly at directly operated stores, resulting in a substantial increase in revenue. Sales of the Canterbury and Black & White brands also remained generally firm, which offset the impact.」

「Trademark rights or sales rights for multiple high-value-added, high-image sportswear brands ranked among the industry's leading brands」

「We will create new markets that cannot be developed through a single brand, implement a multibrand strategy by category, and strengthen our proposals for sports styles.」