Gross Margin Decline Due to a Higher Mix of Low-Margin Products and Increased Discounting

「Factors included sluggish same-store sales and higher discount rates to clear inventory.」

「To address this by clearing inventory, we conducted discount sales and returned points through our proprietary app, causing the discount rate to exceed plan. As a result, the consolidated gross profit margin was 46.8%, 1.2 percentage points below the planned 48.0%.」

「As inventories and disposals increased due to the gap between the sales plan and actual results, standalone gross margin deteriorated by 0.7 percentage points year on year, and sales continued below the previous year.」

「Although procurement prices rose due to surging raw-material and energy prices and the yen's depreciation, the company worked to improve gross margin by reviewing selling prices, optimizing inventories and promoting sales of private-label products. As a result, gross margin improved by 1.3% year on year, and gross profit rose 4.2% to ¥43,942 million.」

「To cover increases in procurement prices, selling, general and administrative expenses and other costs, the company also worked to reduce expenses by closing unprofitable stores and improving personnel efficiency.」

「Because procurement prices rose amid surging raw-material and energy prices and the yen's depreciation, gross margin failed to improve, and gross profit remained at ¥42,165 million, up 4.5% year on year.」

「Although the company worked to reduce expenses by closing unprofitable stores and improving operating efficiency, and to improve gross margin through inventory controls, these efforts were not sufficient to cover the decline in profit resulting from lower sales caused by the spread of COVID-19.」

「Although the company worked to reduce expenses by closing unprofitable stores and improving operating efficiency, and to improve gross margin through inventory controls, these efforts were not sufficient to offset the decline in sales caused by the spread of COVID-19.」

「However, to improve product freshness in stores, the company aggressively proceeded with inventory disposals and recognized additional valuation losses on carried-over merchandise, resulting in a significant decline in gross margin.」

「However, to improve product freshness in stores, the company aggressively proceeded with inventory disposals and recognized additional valuation losses on carried-over merchandise, resulting in a significant decline in gross margin.」

「However, the average spend per customer remained sluggish, sales continued below the previous year, and gross margin declined as a result of aggressive inventory disposals.」

「However, customer traffic declined and sales remained below the previous fiscal year due to intensifying competition and the impact of restrained purchasing aimed at optimizing inventory, among other factors. In addition, expanded markdowns associated with price competition and inventory liquidation caused gross margin to decline.」

「However, overall customer traffic declined and sales remained below the previous year, partly due to the impact of restrained purchasing aimed at optimizing inventory and a decline in winter merchandise sales caused by falling temperatures and the delayed onset of snowfall in northern Japan. In addition, aggressive inventory liquidation caused gross margin to decline.」

「However, partly due to the impact of restrained purchasing associated with inventory adjustments, overall customer traffic declined and sales remained below the previous year. In addition, aggressive inventory liquidation caused gross margin to decline.」

「However, the impact of restrained purchasing associated with inventory adjustments caused customer traffic to decline and sales to remain below the previous year. In addition, aggressive inventory liquidation caused the gross margin to decline.」

「In the footwear business, the gross margin increased as the sales mix shifted toward relatively high-margin products. In the apparel business, the gross margin increased following a review of product sourcing channels. However, the decline in revenue was substantial, and gross profit was ¥63,677 million, down 4.2% year on year.」

「As a result, despite the impact of lower revenue, improvements in gross margin, the effect of reductions in selling, general and administrative expenses, and gains on sales arising from the partial sale of cross-shareholdings, among other factors, performance for the first 9 months of the current consolidated fiscal year was」

「Although revenue was below the same period of the previous year, gross margin increased and selling, general and administrative expense reductions had an effect,」

「As a result, although revenue fell below the previous year due to the decline in the number of stores following closures and sluggish customer traffic at existing stores amid intensifying competition, gross margin increased, and performance for the first quarter of the current consolidated fiscal year was」

「The gross margin also remained below the previous fiscal year, partly because the sales mix of relatively low-margin products, such as global-brand sneakers, increased.」

「However, revenue declined due to the proactive closure of unprofitable stores and sluggish customer traffic. In addition, sales of relatively low-margin product groups increased, and discounting aimed at optimizing inventory levels and securing an advantage in price competition also increased, causing the gross margin to remain below the same period of the previous year.」

「However, revenue declined due to the proactive closure of unprofitable stores and sluggish customer traffic. In addition, sales of relatively low-margin product groups increased, and discounting aimed at optimizing inventory levels and securing an advantage in price competition increased, causing the gross margin to remain below the same period of the previous year.」

「The gross margin also remained below the previous year, as sales of relatively low-margin product groups increased and discounting aimed at optimizing inventory levels and securing an advantage in price competition increased.」