Improving Profitability by Reducing SG&A Expenses
First written in FY2018-Q2. 14 of 31 entries say "Advanced", first in FY2018. Latest entry: FY2027-H1.
- FY2027-H1AdvancedAnnual report
「Although some expenses were unavoidable due to the effects of rising wages, inflation, and other factors, selling, general and administrative expenses decreased 1.9% year on year as a result of reviewing advertising expenses and curbing administrative costs.」
Amid cost pressures from rising wages and inflation, the company reduced selling, general and administrative expenses 1.9% year on year by reviewing advertising expenses and curbing administrative costs. - 2026-07-10AdvancedEarnings
「Although some expenses were unavoidably affected by wage increases and inflation, selling, general and administrative expenses decreased 2.5% year on year as a result of reviewing advertising expenses and restraining administrative expenses.」
The Company reported a decline in selling, general and administrative expenses as an actual result of reviewing advertising expenses and restraining administrative expenses. - FY2026ReframedAnnual report
「Although some expenses were inevitably affected by wage increases, inflation and other factors, selling, general and administrative expenses decreased 10.4% year on year due to improved personnel efficiency, tighter control of administrative expenses and the transfer of the apparel business.」
The factors behind the reduction in selling, general and administrative expenses were reorganized to include the impact of the transfer of the apparel business in addition to improved personnel efficiency and tighter control of administrative expenses. - 2026-04-29ReframedGeneral Meetings of Shareholders
「Although some expenses were unavoidably affected by wage increases and inflation, selling, general and administrative expenses decreased 10.4% year on year as a result of improving personnel efficiency, restraining administrative expenses and transferring the apparel business.」
The explanation for the reduction in selling, general and administrative expenses now includes the effects of improving personnel efficiency, restraining administrative expenses and transferring the apparel business. - FY2026-H1ReframedAnnual report
「Although some expenses were inevitably affected by wage increases, inflation and other factors, selling, general and administrative expenses decreased 13.0% year on year due to improved personnel efficiency, tighter control of administrative expenses and the transfer of the apparel business.」
Selling, general and administrative expenses decreased 13.0% year on year, reflecting improved personnel efficiency, tighter control of administrative expenses and the transfer of the apparel business. - FY2025-H1Business-specific SG&A change rates updatedAnnual report
「Although the company improved personnel efficiency and restrained administrative expenses, some expenses were unavoidably higher because of wage increases, inflation and other factors, resulting in selling, general and administrative expenses increasing 2.6% year on year. In the apparel business, selling, general and administrative expenses decreased 14.5% year on year through restraint of rent, personnel costs and other expenses as the number of stores declined.」
In the footwear business, selling, general and administrative expenses increased 2.6% year on year due to wage increases, inflation and other factors, while in the apparel business they decreased 14.5% as store closures curbed rent, personnel expenses and other costs. - FY2025-Q1SG&A trends diverged by businessAnnual report
「Although some expenses were unavoidably higher because of wage increases, inflation and other factors, selling, general and administrative expenses increased 3.2% year on year despite efforts to improve personnel efficiency and restrain administrative expenses. In the apparel business, selling, general and administrative expenses decreased 15.3% year on year through restraint of administrative expenses and reductions in fixed costs from store closures.」
In the footwear business, SG&A increased 3.2% because of wage increases and inflation, while in the apparel business it decreased 15.3% through restraint of administrative expenses and store closures. - FY2024AdvancedAnnual report
「Selling, general and administrative expenses were ¥42,871 million, down 3.4% year on year, through controls on advertising and administrative expenses and efforts to improve personnel efficiency.」
Consolidated selling, general and administrative expenses decreased 3.4% year on year through restraint of advertising and administrative expenses and improved personnel efficiency. - FY2024-Q3Business-specific SG&A reduction rates updatedAnnual report
「Although some expenses increased from the previous year because of higher fees associated with increased cashless sales and higher logistics costs, selling, general and administrative expenses decreased 1.2% year on year through improved personnel efficiency and restraint of administrative expenses.／In the apparel business, selling, general and administrative expenses decreased 11.2% year on year through restraint of administrative expenses and reductions in fixed costs from store closures.」
In the footwear business, SG&A decreased 1.2% year on year despite higher fees and logistics costs, while in the apparel business it decreased 11.2% through restraint of administrative expenses and store closures. - FY2024-Q2AdvancedAnnual report
「Although some expenses increased from the previous year because of stepped-up advertising and higher payment processing fees as cashless payments became more widespread, selling, general and administrative expenses decreased 1.3% year on year through improved personnel efficiency and restraint of administrative expenses.」
In the footwear business, selling, general and administrative expenses decreased 1.3% year on year through improved personnel efficiency and restraint of administrative expenses despite higher advertising expenses and payment processing fees. In the apparel business, they decreased 7.3% through restraint of administrative expenses and store closures. - FY2024-Q1AdvancedAnnual report
「Selling commissions increased as cashless payments became more widespread, and advertising was strengthened, but selling, general and administrative expenses decreased 0.3% year on year through improved personnel efficiency and restraint of administrative expenses.」
In the footwear business, selling commissions and advertising expenses increased, but selling, general and administrative expenses decreased 0.3% year on year through improved personnel efficiency and restraint of administrative expenses. In the apparel business, they decreased 8.1% through restraint of administrative expenses. - FY2023Cost reductions failed to absorb higher utilities costs and other increasesAnnual report
「Procurement prices increased because of soaring raw material and energy prices, the weaker yen and other factors, limiting the improvement in the gross profit margin. Gross profit therefore amounted to ¥42,165 million, up 4.5% year on year. Although advertising and administrative expenses were controlled, substantial increases in utilities costs resulted in selling, general and administrative expenses remaining broadly in line with the previous period at ¥44,399 million, down 0.8% year on year.」
Although advertising and administrative expenses were restrained, increases in procurement prices and utilities costs exceeded the impact of cost reductions. - FY2023-Q3SG&A trends diverged by businessAnnual report
「Although the company improved personnel efficiency and restrained administrative expenses, utilities costs rose far more than expected and promotional expenses also increased, resulting in selling, general and administrative expenses increasing 0.6% year on year.／In the apparel business, selling, general and administrative expenses decreased 2.0% year on year through restraint of administrative expenses.」
In the footwear business, SG&A increased 0.6% because of higher utilities and promotional expenses despite efforts to improve personnel efficiency and restrain administrative expenses, while in the apparel business it decreased 2.0% through restraint of administrative expenses. - FY2023-Q2Costs diverged, increasing in the footwear business and decreasing in the apparel businessAnnual report
「Although the company improved personnel efficiency and restrained administrative expenses, utilities costs rose far more than expected and promotional expenses also increased, resulting in selling, general and administrative expenses increasing 1.1% year on year.／In the apparel business, selling, general and administrative expenses decreased 3.0% year on year through restraint of administrative expenses.」
In the footwear business, SG&A increased 1.1% because of higher utilities and promotional expenses despite efforts to improve personnel efficiency and restrain administrative expenses, while in the apparel business it decreased 3.0% through restraint of administrative expenses. - FY2023-Q1Cost savings failed to offset higher costsAnnual report
「The company also worked to reduce expenses by closing unprofitable stores and improving personnel efficiency, but was unable to offset increases in procurement prices and SG&A.」
The company continued cost-reduction measures, including closing unprofitable stores and improving personnel efficiency, but could not absorb increases in procurement prices, SG&A and other costs. - FY2022AdvancedAnnual report
「Selling, general and administrative expenses were ¥44,745 million, down 5.2% year on year, through controls on advertising and administrative expenses.」
Consolidated selling, general and administrative expenses were reduced 5.2% year on year through controls on advertising and administrative expenses. However, this was insufficient to offset the decline in profit caused by lower revenue. - FY2022-Q3AdvancedAnnual report
「Selling expenses increased because advertising activities had been curtailed in the previous year, but selling, general and administrative expenses decreased 9.3% year on year through the closure of unprofitable stores and control of administrative expenses.」
Through the closure of unprofitable stores and control of administrative expenses, the apparel business reduced selling, general and administrative expenses 9.3% year on year. - FY2022-Q2AdvancedAnnual report
「Selling expenses increased because advertising activities had been curtailed in the same period of the previous year, but selling, general and administrative expenses decreased 8.7% year on year through the closure of unprofitable stores and control of administrative expenses.」
In the apparel business, selling, general and administrative expenses decreased 8.7% year on year through the closure of unprofitable stores and control of administrative expenses. - FY2022-Q1SG&A trends diverged by businessAnnual report
「Although the company pursued improved personnel efficiency, selling, general and administrative expenses increased 0.2% year on year because of a rebound from the substantial reduction in advertising expenses in the same period of the previous year in response to the spread of COVID-19.」
In the footwear business, selling, general and administrative expenses increased 0.2% because of the rebound from the previous period's reduction in advertising expenses, despite efforts to improve personnel efficiency. In the apparel business, they decreased 8.1% due mainly to a reduction in the number of stores, resulting in divergent trends by business. - FY2021Full-year SG&A reduction rate updatedAnnual report
「The company actively worked to reduce expenses and reduced selling, general and administrative expenses 7.9% year on year, but was unable to fully offset the negative impact of lower revenue on profit.」
Selling, general and administrative expenses decreased 7.9% year on year in the footwear business, but this did not offset the decline in profit caused by lower revenue. In the apparel business, they decreased 19.9%. - FY2021-Q3SG&A reduction rate updatedAnnual report
「In response to these conditions, the company worked to reduce expenses and reduced selling, general and administrative expenses 8.2% year on year, but was unable to fully offset the negative impact of lower revenue on profit.／In response to these conditions, the company worked to reduce expenses, substantially curtailed advertising expenses, actively closed unprofitable stores, and reduced personnel costs by adjusting working hours through shorter operating hours. As a result, selling, general and administrative expenses decreased 21.3% year on year.」
The SG&A reduction rate was 8.2% year on year in the footwear business and 21.3% in the apparel business. Advertising expenses, unprofitable stores and personnel costs were reduced, but the footwear business could not offset the impact of lower revenue. - FY2021-Q2AdvancedAnnual report
「In the footwear business, the company identified improving inventory freshness and inventory efficiency as key issues, controlled sourcing volumes in response to the spread of requests to refrain from going out due to COVID-19, narrowed the number of items handled, and proceeded with the rollout of stores with standardized product ranges.」
The company controlled sourcing volumes in response to lower demand and also worked to reduce expenses. Selling, general and administrative expenses decreased 8.9% year on year in the footwear business and 22.6% in the apparel business. - FY2021-Q1AdvancedAnnual report
「In sales promotion, the company focused on improving the advertising expense ratio by substantially reducing flyers and TV commercials in line with the sharp decline in revenue caused by the spread of COVID-19. Selling expenses decreased 34.3% year on year, and, together with the review of administrative expenses, selling, general and administrative expenses decreased 14.5% year on year.」
Through lower advertising expenses and a review of administrative expenses, selling expenses decreased 34.3% year on year and selling, general and administrative expenses decreased 14.5%. - FY2020-Q3AdvancedAnnual report
「SG&A decreased 8.5% year on year as a result of closing unprofitable stores and controlling selling expenses, in addition to other cost measures.」
The company continued to close unprofitable stores and control selling expenses, and the SG&A reduction rate was 8.5% year on year. - FY2020-Q2Change in the SG&A reduction rateAnnual report
「SG&A decreased 7.7% year on year as a result of closing unprofitable stores and controlling selling expenses, in addition to other cost measures.」
The company continued to close unprofitable stores and control selling expenses, reducing selling, general and administrative expenses in the apparel business by 7.7% year on year. - FY2020-Q1AdvancedAnnual report
「SG&A decreased 8.3% year on year as a result of closing unprofitable stores and controlling selling expenses, in addition to other cost measures.」
By closing unprofitable stores and controlling selling expenses, the apparel business reduced selling, general and administrative expenses 8.3% year on year. - FY2019AdvancedAnnual report
「Selling, general and administrative expenses were ¥55,363 million, down 3.8% year on year, through controls on advertising expenses and personnel costs.」
Advertising expenses and personnel costs were controlled, reducing selling, general and administrative expenses by 3.8% year on year. However, the decline in gross profit was substantial, and operating profit decreased. - FY2019-Q3Gross profit decline exceeded the savings impactAnnual report
「As a result, gross profit declined by even more than the substantial reductions in advertising and administrative expenses.」
Although advertising and administrative expenses were substantially reduced, the decline in gross profit exceeded the savings, indicating that the decline could not be offset by cost reductions. - FY2019-Q2RestatedAnnual report
「As a result, gross profit declined by substantially more than the reductions in advertising and administrative expenses.」
Although advertising and administrative expenses were reduced, this was insufficient to offset the decline in gross profit. - FY2018AdvancedAnnual report
「Selling, general and administrative expenses were held down, mainly through lower advertising expenses, to ¥57,544 million, down 2.0% year on year.」
SG&A was held down, mainly through lower advertising expenses, and selling, general and administrative expenses decreased 2.0% year on year. - FY2018-Q2First statedAnnual report
「Although revenue was below the same period of the previous year, gross margin increased and selling, general and administrative expense reductions had an effect,」
For the first time, the company explicitly identified the impact of SG&A reductions as a factor that increased operating profit despite lower revenue.