Excess Inventory and Inventory Valuation Losses Driven by Weather, Trends, Preferences and Price Competition
First written in FY2019. 10 of 19 entries say "Mitigated", first in FY2021. Latest entry: FY2027-H1.
Chiyoda moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 23 of 41 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Ending inventory is stated after a write-down to reflect the decline in profitability, and the following inventory valuation loss is included in cost of sales: ¥289 million」
The inventory valuation loss increased from ¥264 million in the same period of the previous year to ¥289 million, with valuation losses on merchandise continuing to be recognized. - FY2026-H1MitigatedAnnual report
「Current cumulative consolidated interim period: ¥264 million」
Inventory valuation losses amounted to ¥264 million, down from ¥455 million in the same period of the previous year. Product valuation losses continue, but have decreased year on year. - FY2025-H1MitigatedAnnual report
「Cumulative consolidated interim period of the previous year: ¥609 million; current cumulative consolidated interim period: ¥455 million」
Inventory valuation losses for the cumulative interim period were ¥455 million, down from ¥609 million in the same period of the previous year. Product valuation losses continue, but have decreased year on year. - FY2025-Q1MitigatedAnnual report
「As part of our efforts to improve our earnings structure, we closed unprofitable stores and disposed of carried-over inventory, while restraining excessive cash outflows through rigorous purchasing controls and working to improve profitability.」
In the apparel business, we have continued addressing inventory risks that lead to excess inventory and product valuation losses by closing unprofitable stores, disposing of carried-over inventory and controlling purchases. - FY2024MitigatedAnnual report
「Write-down of product carrying amounts: ¥1,180 million」
Write-downs of product carrying amounts decreased from ¥1,401 million in the previous year to ¥1,180 million. Product valuation losses and excess inventory risks continue, but have decreased from the previous year. - FY2024-Q2MitigatedAnnual report
「The ending inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales.」
Inventory valuation losses for the cumulative second-quarter period were ¥609 million, down from ¥639 million in the same period of the previous year. Product valuation losses continue, but have decreased year on year. - FY2023MitigatedAnnual report
「Write-down of product carrying amounts: ¥1,401 million」
Write-downs of product carrying amounts decreased from ¥1,519 million in the previous year to ¥1,401 million, but product valuation losses and excess inventory risks continue. - FY2023-Q2MitigatedAnnual report
「The closing inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation losses are included in cost of sales: ¥742 million for the cumulative consolidated second-quarter period of the previous year; ¥639 million for the cumulative consolidated second-quarter period of the current year」
Inventory valuation losses decreased from ¥742 million in the same period of the previous year to ¥639 million. Product valuation losses continue, but have decreased year on year. - FY2022MitigatedAnnual report
「Write-down of product carrying amounts: ¥1,519 million」
Write-downs of product carrying amounts amounted to ¥1,519 million, down from inventory valuation losses of ¥1,825 million in the previous year. Excess inventory and inventory valuation losses continue, but have decreased year on year. - FY2022-Q2MitigatedAnnual report
「Ending inventory is stated at the amount after its carrying value has been written down due to lower profitability, and the following inventory valuation losses are included in cost of sales.」
Inventory valuation losses for the cumulative second-quarter period were ¥742 million, down from ¥899 million in the same period of the previous year. Product valuation losses continue to occur, but have decreased year on year. - FY2021MitigatedAnnual report
「The closing inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales: ¥1,825 million」
Inventory valuation losses amounted to ¥1,825 million, down from ¥2,741 million in the previous consolidated fiscal year. We are also reducing inventory balances by cutting the number of products handled and disposing of carried-over inventory. - FY2021-Q3RestatedAnnual report
「The closing inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales: ¥959 million」
Inventory valuation losses due to lower profitability amounted to ¥959 million for the cumulative third-quarter period, and the risk of excess inventory and inventory valuation losses continues to materialize. - FY2021-Q2RestatedAnnual report
「Ending inventory is stated at the amount after its carrying value has been written down due to lower profitability, and the following inventory valuation losses are included in cost of sales.」
The write-down of inventory carrying amounts due to lower profitability has continued, with inventory valuation losses for the cumulative consolidated second-quarter period stated at ¥899 million. The risk of excess inventory and inventory valuation losses has materialized. - FY2020-Q3WorsenedAnnual report
「Ending inventory is stated at the amount after its carrying value has been written down due to lower profitability, and the following inventory valuation losses are included in cost of sales.」
Inventory valuation losses for the cumulative third-quarter period were ¥1,923 million, up from ¥570 million in the same period of the previous year. Inventory disposals and valuation losses aimed at improving product freshness are being reflected in increasingly significant figures. - FY2020-Q2MaterialisedAnnual report
「In the footwear market, the increasing casualisation of fashion and the popularity of branded sneakers have accelerated product obsolescence, and product sales cycles have steadily shortened. We recognize improving product freshness as an important issue and recorded additional inventory valuation losses during the cumulative consolidated second-quarter period to actively dispose of carried-over inventory.」
The obsolescence of products and shortening of sales cycles caused by the casualisation of fashion and the popularity of branded sneakers materialized in the disposal of carried-over inventory and the recognition of additional inventory valuation losses. - FY2019First statedAnnual report
「The footwear, apparel and other products handled by our Group may be affected by weather conditions such as cool summers and warm winters. They may also be affected by changes in fashion trends and customer preferences, while price competition with other companies may cause product prices to decline significantly. We prepare purchasing plans and procure products after taking these factors into account, but excess inventory and inventory valuation losses may affect our business performance.」
The possibility of excess inventory and inventory valuation losses arising from weather, fashion trends, customer preferences and price competition is separately disclosed as a product risk.