Business restructuring and structural reforms under the First Medium-Term Management Plan

「Against this backdrop, the Group has formulated a medium-term management plan covering the fiscal years ending March 2025 through March 2027 and is implementing four initiatives as growth strategies: strengthening product development and marketing for the specialty-store market; deploying a new store strategy to expand directly operated stores and the retail business; further expanding the e-commerce business; and developing new sales channels in Japan and overseas.」

「In May 2024, the Group formulated a Medium-Term Management Plan and established four initiatives as its growth strategy: strengthening product development and marketing for the specialty store market, developing a new store strategy to expand directly operated stores and the retail business, further expanding the e-commerce business, and developing new domestic and overseas distribution channels.」

「Under the management policy based on the First Medium-Term Management Plan, whose final year is the current fiscal year, the company continued to expand sales channels in growth areas such as specialty stores, and strengthen retail businesses including the e-commerce business and the directly operated retail business '+moonbat' (Plus Moonbat). As a result of also working to reduce inventories by curbing purchases of new products on an ongoing basis and optimizing selling, general and administrative expenses and other costs through structural reform, profit and loss substantially exceeded plan after absorbing the increase in sales-related expenses accompanying higher sales.」

「Under the management policy based on the First Medium-Term Management Plan, whose final year is the current fiscal year, the company continued to expand sales channels in growth areas such as specialty stores and mass-market retailers, and strengthen retail businesses including the e-commerce business and the directly operated retail business '+moonbat' (Plus Moonbat). As a result of also working to reduce inventories by curbing purchases of new products on an ongoing basis and optimizing selling, general and administrative expenses and other costs through structural reform, profit and loss substantially exceeded plan after absorbing the increase in sales-related expenses accompanying higher sales. Consolidated net sales were ¥8,306 million, up 14.7% year on year, consolidated operating profit was ¥530 million, up 366.8%, and consolidated ordinary profit was ¥539 million, up 214.9%. Inventories including products and raw materials also fell by ¥511 million year on year.」

「Under the management policy based on the First Medium-Term Management Plan, whose final year is the current fiscal year, the company continued to expand sales channels in growth areas such as specialty stores and mass-market retailers, and strengthen retail businesses including the e-commerce business and the directly operated retail business '+moonbat' (Plus Moonbat). As a result of also working to reduce inventories by curbing purchases of new products on an ongoing basis and optimizing selling, general and administrative expenses and other costs through structural reform, profit and loss substantially exceeded plan after absorbing the increase in sales-related expenses accompanying higher sales. Inventories including products and raw materials also fell by ¥447 million year on year.」

「Under the management policy based on the First Medium-Term Management Plan, whose final year is the current fiscal year, the company continued to expand sales channels in growth areas such as specialty stores and mass-market retailers, and strengthen retail businesses including the e-commerce business and the directly operated retail business '+moonbat' (Plus Moonbat). As a result of also working to reduce inventories by curbing purchases of new products on an ongoing basis and cutting selling, general and administrative expenses and other costs through structural reform, inventories including products and raw materials fell by ¥574 million year on year, while profit and loss substantially exceeded plan after absorbing the increase in sales-related expenses accompanying higher sales.」

「Under the management policy of the First Medium-Term Management Plan formulated in the previous consolidated fiscal year, the group continued to expand sales channels for specialty stores and mass retailers, a growth area, and strengthen its e-commerce business and retail businesses such as its directly operated store business, "+moonbat" (Plus Moonbat). As a result of reducing inventories through continued restraint on purchases of new products and reducing selling, general and administrative expenses through structural reforms, inventories including products and raw materials declined substantially from the end of the previous consolidated fiscal year. This contributed to an improvement in operating cash flow and absorbed increases in cost of sales resulting from soaring raw material prices and the ongoing depreciation of the yen, enabling the company to report operating profit for the first time in 4 fiscal years in the cumulative third quarter.」

「Under the management policy of the First Medium-Term Management Plan formulated in the previous consolidated fiscal year, the group continued to expand sales channels for specialty stores and mass retailers, a growth area, and strengthen its e-commerce business and retail businesses such as its directly operated store business, "+moonbat" (Plus Moonbat). As a result of reducing inventories through continued restraint on purchases of new products and reducing selling, general and administrative expenses through structural reforms, inventories including products and raw materials declined substantially from the end of the previous consolidated fiscal year. This contributed to an improvement in operating cash flow and absorbed increases in cost of sales resulting from soaring raw material prices and the ongoing depreciation of the yen, enabling the company to report operating profit for the first time in 3 fiscal years in the cumulative second quarter.」

「Under the management policy of the First Medium-Term Management Plan formulated in the previous consolidated fiscal year, the group continues to expand sales channels for specialty stores and mass retailers, a growth area, and strengthen its e-commerce business and retail businesses such as its directly operated store business, "+moonbat" (Plus Moonbat), while building a stable earnings base by reducing inventories through continued restraint on purchases of new products and reviewing and reducing selling, general and administrative expenses through structural reforms.」

「Under the management policy based on the First Medium-Term Management Plan, which began in the current consolidated fiscal year, we focused on recovering sales by expanding distribution channels for specialty and mass retailers, which are growth areas, and strengthening our e-commerce and directly operated store businesses. However, recovery in the department store segment, our main distribution channel, progressed less than expected, and results fell substantially short of plan.」

「Under the management policy of the First Medium-Term Management Plan, for which the current consolidated fiscal year is the first year, the company is steadily expanding sales channels for specialty stores and mass retailers, a growth area, strengthening its e-commerce business and directly operated store business, focusing on sales recovery and improving gross margins across its existing sales channels, while curbing purchases of new products and fundamentally reviewing and reducing selling, general and administrative expenses and other costs through structural reforms advanced since the previous fiscal year.」

「Under the First Medium-Term Management Plan, for which the current consolidated fiscal year is the first year, the company focused on recovering sales by expanding sales channels for specialty stores and mass retailers, a growth area, and strengthening its e-commerce business and directly operated store business, while improving gross margins across its existing sales channels. It also sought to mitigate the impact of the spread of COVID-19 by curbing purchases of new products and fundamentally reviewing and reducing selling, general and administrative expenses and other costs through structural reforms advanced since the previous fiscal year. As a result, consolidated sales were ¥4.027 billion, up 10.4% year on year. In terms of earnings, the consolidated operating loss was ¥85 million, compared with an operating loss of ¥547 million in the same quarter of the previous year, and the consolidated ordinary loss was ¥15 million, compared with an ordinary loss of ¥466 million in the same quarter of the previous year.」

「Under the First Medium-Term Management Plan, for which the current fiscal year is the first year, the group focused on recovering sales by expanding sales channels for specialty stores and mass retailers, a growth area, and strengthening its e-commerce business and retail businesses such as its directly operated store business, "+moonbat" (Plus Moonbat). It also sought to mitigate the impact of the spread of COVID-19 by curbing purchases of new products and fundamentally reviewing and reducing selling, general and administrative expenses and other costs through structural reforms advanced since the previous fiscal year. As a result, consolidated sales were ¥2.616 billion, up 41.5% year on year. In terms of earnings, consolidated operating profit was ¥240 million, compared with an operating loss of ¥310 million in the same quarter of the previous year, and consolidated ordinary profit was ¥267 million, compared with an ordinary loss of ¥292 million in the same quarter of the previous year.」

「Amid these conditions, in accordance with the First Medium-Term Management Plan formulated in May 2021, the group will pursue business restructuring and structural reforms in businesses severely affected by the spread of COVID-19 by developing products and sales channels suited to changes in consumers' lifestyles and purchasing preferences resulting from the rapid expansion of remote work, continuously reducing inventories through efficient procurement, and controlling selling, general and administrative expenses to optimise the allocation of management resources.」