Increase in Operating Profit Despite Lower Revenue in the Wholesale Business

「As a result, revenue from this business during the interim consolidated accounting period was ¥323 million, down 11.2% year on year, and it posted an operating loss of ¥94 million, compared with an operating loss of ¥125 million in the same period of the previous year.」

「Revenue from this business for the consolidated fiscal year was ¥763 million, down 13.8% year on year, while operating loss was ¥190 million, compared with ¥277 million in the previous year.」

「As a result, revenue for the wholesale business in the interim consolidated accounting period was ¥364 million, down 15.6% year on year, and the operating loss was ¥125 million, compared with a loss of ¥185 million in the same period of the previous year.」

「However, amid these conditions, the business was significantly affected by the discontinuation of unprofitable transactions. Revenue for the wholesale business in the consolidated fiscal year was ¥884 million, down 19.9% year on year, and the operating loss was ¥277 million, compared with a loss of ¥322 million in the same period of the previous year.」

「However, amid these conditions, the business was significantly affected by the reorganisation of business partners across all sales channels. Revenue for the wholesale business in the interim consolidated accounting period was ¥431 million, down 24.7% year on year, and the operating loss was ¥185 million, compared with a loss of ¥189 million in the same period of the previous year.」

「As a result, in the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥240 million, down 33.5% year on year, and operating results were a ¥99 million loss, compared with a ¥46 million loss in the same period of the previous year.」

「As a result, the business recorded net sales of ¥1,105 million, compared with ¥1,887 million in the previous year, and operating results were a ¥322 million loss, compared with a ¥572 million loss in the previous year.」

「The business was significantly affected by the temporary suspension of operations at some department-store locations. In the cumulative third quarter of the current consolidated fiscal year, net sales were ¥859 million, down 44.3% year on year. Although the gross margin improved significantly, expense reductions failed to keep pace, resulting in an operating loss of ¥236 million, compared with a ¥382 million loss in the same period of the previous year.」

「However, amid these conditions, the business was significantly affected by the rationalization of business partners across all sales channels. In the cumulative second quarter of the current consolidated fiscal year, net sales were ¥573 million, down 47.1% year on year. Although the gross margin was generally in line with plan, the decline in net sales weighed on earnings, resulting in an operating loss of ¥189 million, compared with a ¥164 million loss in the same period of the previous year.」

「The business was significantly affected by the rationalization of unprofitable brands and business partners. In the cumulative first quarter of the current consolidated fiscal year, net sales were ¥361 million, down 44.1% year on year. Although the gross margin improved, the decline in net sales weighed on earnings, resulting in an operating loss of ¥46 million, compared with a ¥62 million loss in the same period of the previous year.」

「As a result, in the cumulative third quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,543 million, compared with ¥1,801 million in the same quarter of the previous year, and operating results were a ¥382 million loss, compared with a ¥523 million loss in the same quarter of the previous year.」

「As a result, in the cumulative second quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,083 million, compared with ¥1,087 million in the same quarter of the previous year, and operating results were a ¥164 million loss, compared with a ¥428 million loss in the same quarter of the previous year.」

「As a result, in the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥645 million, compared with ¥673 million in the same period of the previous year, and operating results were a ¥62 million loss, compared with a ¥177 million loss in the same period of the previous year.」

「As a result, in the cumulative third quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,801 million, down 19.7% year on year, and operating results were a ¥523 million loss, compared with a ¥1,428 million loss in the same period of the previous year.」

「As a result, in the cumulative second quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,087 million, down 15.2% year on year, and operating results were a ¥428 million loss, compared with a ¥922 million loss in the same period of the previous year.」

「As a result, in the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥673 million, up 23.6% year on year, while operating results were a ¥177 million loss, compared with a ¥221 million loss in the same period of the previous year.」

「The business recorded net sales of ¥2,815 million, down 48.6% year on year, and operating results were a ¥1,543 million loss, compared with a ¥1,048 million loss in the same period of the previous year.」

「The company continued to pursue efficiency-focused sales activities, including improving transaction terms and rationalizing unprofitable transactions to improve profitability by customer and sales floor. However, the business was significantly affected by temporary store closures and shortened operating hours due to the spread of COVID-19, as well as lower consumer sentiment resulting from requests to refrain from going out. Sales also declined as unprofitable transactions were rationalized. In the cumulative third quarter of the current consolidated fiscal year, net sales were ¥2,245 million, down 48.9% year on year, and operating results were a ¥1,428 million loss, compared with a ¥79 million loss in the same period of the previous year.」

「In the cumulative second quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,282 million, down 53.3% year on year, and operating results were a ¥922 million loss, compared with a ¥229 million loss in the same period of the previous year.」

「In the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥544 million, down 65.0% year on year, and operating results were a ¥221 million loss, compared with a ¥55 million profit in the same period of the previous year.」

「The company has pursued active sales activities, including effective store-based promotions through existing specialty retail and department-store channels and efforts to strengthen timely, appropriate store assortments. However, as consumers continued to favor saving, in-store sales remained sluggish due to stagnant fashion apparel consumption following the October consumption tax increase. In addition, sales declined as unprofitable transactions were rationalized. In the cumulative third quarter of the current consolidated fiscal year, the business recorded net sales of ¥4,393 million, down 9.7% year on year, and operating results were a ¥79 million loss, compared with a ¥10 million profit in the same period of the previous year.」

「The company worked to secure earnings by strengthening the development of new products for each brand and advancing sales activities focused on the stores of specialty retailers and department stores. However, as consumers remained strongly focused on saving, in-store sales remained sluggish, and sales also declined as unprofitable transactions were rationalized. In the cumulative second quarter of the current consolidated fiscal year, the business recorded net sales of ¥2,747 million, down 8.3% year on year, and operating results were a ¥229 million loss, compared with a ¥175 million loss in the same period of the previous year.」

「Due to lower sales resulting from the rationalization of unprofitable transactions during the previous period, the business recorded net sales of ¥1,558 million, down 11.0% year on year, and operating profit of ¥55 million, down 55.9% year on year, in the cumulative first quarter of the current consolidated fiscal year.」

「Net sales in the wholesale business were limited to ¥6,226 million, down 10.4% year on year, while operating results were a ¥272 million loss, compared with a ¥114 million profit in the same period of the previous year.」

「In addition to lower sales as unprofitable transactions were rationalized, successive natural disasters and the trend toward warmer winters caused stagnation in fashion apparel consumption among female consumers that exceeded expectations. In the cumulative third quarter of the current consolidated fiscal year, the business recorded net sales of ¥4,863 million, down 11.1% year on year, and operating profit of ¥10 million, down 97.4% year on year.」

「The company strengthened the development of new products that address consumer needs for each brand and conducted active sales activities to promote the strength of its brands to retailers and consumers. However, in addition to lower sales as unprofitable transactions were rationalized, the business was affected by abnormal summer weather. In the cumulative second quarter of the current consolidated fiscal year, net sales were ¥2,996 million, down 11.7% year on year, and operating results were a ¥175 million loss, compared with a ¥43 million profit in the same period of the previous year.」

「The company worked to strengthen the development of new products for each brand, expand transactions with key customers with an emphasis on profitability, and conduct active sales activities to promote the strength of its brands to retailers and consumers. However, sales declined as unprofitable transactions were rationalized. In the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,750 million, down 11.2% year on year, and operating profit of ¥125 million, down 50.0% year on year.」

「As a result, net sales in the wholesale business were ¥6,947 million, down 5.1% year on year, while operating profit was ¥114 million, compared with an operating loss of ¥659 million in the previous consolidated fiscal year, including the effects of structural improvements implemented at the end of that fiscal year.」

「In the cumulative third quarter of the current consolidated fiscal year, the business recorded net sales of ¥5,472 million, down 4.7% year on year, while operating profit was ¥401 million, up 392.5% year on year.」

「In the cumulative second quarter of the current consolidated fiscal year, the business recorded net sales of ¥3,394 million, down 4.7% year on year, while operating profit was ¥43 million, compared with an operating loss of ¥171 million in the same period of the previous year.」

「In the cumulative first quarter of the current consolidated fiscal year, the business recorded net sales of ¥1,971 million, down 0.5% year on year, while operating profit was ¥250 million, up 100.7% year on year.」