Sluggish Apparel Market Amid Consumers’ Defensive Spending Mindset and Unsettled Weather

「In the apparel industry, although there is some inbound demand, consumers’ inclination to save remains firmly entrenched because of prolonged high prices. Given cautious consumer sentiment, particularly among middle-aged and older women, the demand environment ahead remains challenging.」

「In the apparel industry, although there is some inbound demand, consumers’ inclination to save remains firmly entrenched because of prolonged high prices. Given cautious consumer sentiment, particularly among middle-aged and older women, the demand environment ahead remains challenging.」

「In the apparel industry, some areas showed increased demand because of higher incomes resulting from wage increases and growth in inbound consumption. However, consumers’ inclination to save remained firmly entrenched, particularly among middle-aged and older women, our core customers, amid repeated price increases. In addition, sales of winter apparel at stores were sluggish because of lingering summer heat and the warm winter, and the market environment remains challenging.」

「In the apparel industry, although opportunities to go out and inbound demand have increased, consumer sentiment, particularly among middle-aged and older women, remains cautious because rising prices have reinforced consumers’ inclination to save, and conditions remain challenging.」

「In the apparel industry, the market environment is expected to remain firm because of the recovery in foot traffic after COVID-19 and inbound demand. However, consumer sentiment toward apparel, particularly among middle-aged and older women, is expected to remain cautious because of high prices, and conditions remain challenging.」

「In the apparel industry, the market environment improved as foot traffic recovered following the easing of restrictions on activities, opportunities to go out increased and inbound demand grew. However, consumers’ inclination to save remained firmly entrenched, particularly among middle-aged and older women, our core customers, and sales of winter apparel at stores were sluggish because of the warm winter, leaving the market environment challenging.」

「After the classification of COVID-19 under the Infectious Diseases Control Law was changed to Class 5 in May 2023, consumption activity showed signs of recovery as restrictions on activities were eased. However, cautious consumer behavior driven by defensive household spending, amid the prolonged Russia-Ukraine conflict, soaring energy and raw material prices, a prolonged weak yen and frequent abnormal weather across various regions, had a significant impact on our Group’s business.」

「In the apparel industry, the market environment for apparel products showed signs of improvement as opportunities to go out, including travel and events, recovered following the easing of restrictions on activities. However, consumers, particularly middle-aged and older women, remained highly defensive in their spending, the recovery in consumer sentiment toward apparel remained slow, and conditions continued to be challenging.」

「In the apparel industry, the market environment showed signs of improvement as foot traffic to commercial facilities increased with the easing of restrictions on activities and travel and events continued to recover. However, the recovery in consumer sentiment toward apparel, particularly among middle-aged and older women, remained slow, and conditions continued to be challenging.」

「In the apparel industry, although some areas showed signs of recovering personal consumption, conditions remained challenging as changes in lifestyles during the COVID-19 pandemic and cooling consumer sentiment caused by rising prices became evident.」

「In the apparel industry, expectations arose for a recovery in apparel demand as the Government’s COVID-19 measures shifted toward maintaining social activity without imposing restrictions and foot traffic recovered. However, concerns about consumer sentiment cooling because of rising prices remained, and conditions continue to be challenging.」

「In the apparel industry, expectations rose for a recovery in apparel consumption as restrictions on activities were gradually eased and foot traffic increased as a result of various government measures. However, concerns about downward pressure on consumer sentiment from rising prices emerged, and conditions remain challenging.」

「In the apparel industry, although expectations have risen for demand for clothing for going out and occasion wear as travel and events recover with the easing of restrictions on activities and increased foot traffic, consumer sentiment toward apparel remains weak and conditions continue to be challenging.」

「In the apparel industry, our Group’s core business, the impact of closures and shortened operating hours at large commercial facilities, including department stores, from late April through May 2021 was significant. Even after the state of emergency was lifted at the end of September, personal consumption activity continued to recover only slowly, and conditions remained challenging.」

「In the apparel industry, our Group’s core business, the impact of closures and shortened operating hours at large commercial facilities, including department stores, and the fifth wave of COVID-19 infections was significant. As the end of the pandemic remained uncertain, the slump in personal consumption activity was expected to continue for some time, and conditions remained challenging.」

「In the apparel industry, our Group’s core business, conditions remained challenging because large commercial facilities, including department stores, were again asked to close or shorten their operating hours, while the end of the COVID-19 pandemic remained uncertain and personal consumption activity remained sluggish.」

「Personal consumption remained extremely challenging throughout the year because of temporary closures and repeated reductions in operating hours at commercial facilities, as well as requests to refrain from going out.」

「In the apparel industry, our Group’s core business, personal consumption remained sluggish and conditions continued to be challenging, with the effects of abnormal weather added to the inability to foresee an end to the COVID-19 pandemic.」

「In the apparel industry, our Group’s core business, personal consumption fell sharply because commercial facilities and directly operated stores suspended operations or shortened their hours during the first quarter. Restrictions on nonessential and nonurgent outings continued afterward, and conditions remained extremely challenging.」

「In the apparel industry, our Group’s core business, the operating environment surrounding our Group became challenging overall because of temporary closures and shortened operating hours at commercial facilities and directly operated stores, as well as the sharp decline in personal consumption caused by requests to refrain from going out.」

「In the apparel industry to which our Group belongs, consumer purchasing behavior diversified and their deeply rooted inclination to save continued. Unstable weather in early spring dampened sales of early-summer products, while successive natural disasters during the peak summer season cooled consumer sentiment. Although some last-minute demand ahead of the consumption tax increase was seen in September, deferred purchases afterward and the warm winter trend during the fall and winter regular selling season resulted in generally challenging conditions.」

「During the six-month period of the current second quarter, consumers’ inclination to save remained firmly entrenched across fashion-related consumption, particularly apparel, while sales continued to decline. We recognize that events or circumstances exist that raise substantial doubt about the going concern assumption, as we recorded an operating loss of ¥299 million and negative cash flow from operating activities.」

「In the apparel industry to which our Group belongs, consumers’ inclination to save remained high across apparel consumption generally, and sales of spring and early-summer products lacked momentum because of the low temperatures and unstable weather in early spring. We therefore recognize that the operating environment surrounding our Group remains challenging.」

「Sales of some high-priced products and daily-use goods such as cosmetics performed well, supported mainly by inbound demand in urban areas. However, sales of seasonal products were sluggish because of natural disasters such as extreme heat, torrential rain, typhoons and earthquakes from July through September, as well as the warm winter from October onward. Apparel consumption generally lacked momentum throughout the year, and conditions remained challenging overall.」

「In the apparel industry to which our Group belongs, inbound demand benefited some high-priced goods and personal items. However, consumers’ inclination to save remained strong across fashion-related consumption overall, and natural disasters such as record summer heat, torrential rain, typhoons and earthquakes negatively affected consumer sentiment, leaving conditions challenging overall.」

「In the apparel industry to which our Group belongs, demand for high-priced goods recovered in some areas as inbound demand remained strong, and seasonal demand increased. However, consumers’ inclination to save remained strong across fashion-related consumption, particularly apparel. Following the record heat, torrential rain and other natural disasters that affected various regions in July, successive large typhoons, including landfalls, and other abnormal weather in August had a negative effect on the consumption environment, and conditions remained challenging overall.」

「In the apparel industry to which our Group belongs, there were signs of a recovery in consumption in some areas, including strong inbound demand in urban areas and demand for high-priced goods supported by the wealth effect. However, consumers’ inclination to save remains high across apparel consumption generally, and we recognize that the operating environment surrounding our Group remains challenging.」

「High-priced goods performed well, supported by the recovery in inbound demand after a temporary lull and the wealth effect from rising share prices, particularly among affluent consumers, and some areas of consumption showed signs of recovery. However, across apparel consumption generally, consumers’ inclination to save and tendency to defer purchases remained firmly entrenched, personal consumption lacked strength, and we recognize that the operating environment surrounding our Group remains challenging.」

「In the apparel industry to which our Group belongs, high-priced goods performed well, supported by signs of recovery in inbound demand and the wealth effect from rising share prices, and there were signs of a recovery in consumption. However, across apparel consumption generally, consumers’ inclination to save remained firmly entrenched, and the effects of abnormal weather also weighed on demand. Personal consumption continued to lack strength, and we recognize that the operating environment surrounding our Group remains challenging.」

「In the apparel industry to which our Group belongs, department stores, our main sales channel, showed signs of bottoming out, driven by inbound demand, high-priced merchandise such as jewelry and fashion accessories. However, the recovery in women’s apparel has lagged, consumers’ inclination to save remains firmly entrenched overall, and personal consumption continues to lack strength. We therefore recognize that the operating environment surrounding our Group remains challenging.」

「In the apparel industry to which our Group belongs, employment conditions improved as corporate earnings recovered, and retail statistics, including department store sales, showed signs of bottoming out. However, consumers’ defensive spending mindset toward everyday consumption remained strong because of sluggish growth in disposable household income and concerns about the future, and we recognize that the operating environment surrounding our Group remains challenging.」

「In the apparel industry to which our Group belongs, household incomes showed some improvement, but consumers’ defensive spending mindset arising from concerns about the outlook remained strong. Along with their inclination to save, selective consumption remained prevalent, while persistently high import raw material prices and abnormal weather also affected the market, leaving the operating environment surrounding our Group challenging.」

「In the apparel industry to which our Group belongs, the domestic consumption environment showed signs of stagnation, while consumers’ defensive spending mindset amid concerns about the outlook remained strong. The effects of abnormal weather, including typhoons, and abnormal temperatures added to the difficulties, and the operating environment surrounding our Group remained more challenging than in the previous fiscal year.」

「As household income improvements remained weak, consumers’ inclination to save remained firmly entrenched. Combined with the effects of abnormal weather and temperatures, personal consumption generally remained stagnant, and the operating environment surrounding our Group remained more challenging than in the previous fiscal year.」

「The apparel industry continues to face a challenging market environment, as the recovery in personal consumption shows signs of slowing amid persistently strong consumer caution over household finances and the effects of abnormal weather and temperatures.」