Deteriorating profitability due to lower merchandise gross margin and rising costs
First written in FY2017. 8 of 25 entries say "Restated". Latest entry: 2026-07-28.
Komeri moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
31 other companies' latest entry also says "Restated".
- 2026-07-28RestatedFinancial Results Presentation
「• Negative impact of yen depreciation • Depreciation expenses arising from the commencement of operations at the new Kansai Center • Higher freight costs • Higher unit costs due to wage increases」
Yen depreciation, logistics costs, depreciation expenses associated with the logistics facility’s commencement of operations and wage increases were reaffirmed as factors reducing operating income. - FY2026-H1WorsenedAnnual report
「In addition to rising labor and logistics costs associated with store operations and construction costs for new store openings, labor shortages are becoming more severe, making more productive store operations necessary.」
In addition to higher labor, logistics and construction costs, the worsening labor shortage was identified as a factor that could pressure profitability. - FY2025RestatedAnnual report
「Private-label product sales were affected by higher procurement prices due to yen depreciation and rising logistics costs. However, efforts to develop products that protect and enhance daily life, one of the priority initiatives, contributed to higher sales and profit.」
While higher procurement prices due to yen depreciation and rising logistics costs continue, private-label product development is described as having contributed to higher sales and profit. - FY2025-H1RestatedAnnual report
「Private-label product sales were affected by higher procurement prices due to yen depreciation and rising logistics costs. However, efforts to develop products that protect and enhance daily life, one of the priority initiatives, contributed to higher sales and profit.」
While the effects of higher procurement prices due to yen depreciation and rising logistics costs continue, private-label product development is described as having contributed to higher sales and profit. - FY2024MaterialisedAnnual report
「Although improvements were seen from the penetration of the store operating model and the promotion of EDLP initiatives, gross margin deteriorated for the full year due to struggling sales of gardening, agricultural and building materials, a core category, as well as higher raw-material prices and prolonged yen depreciation.」
While the store operating model and EDLP produced improvement effects, gross margin deteriorated for the full year because sales in the core category struggled, raw-material prices rose and yen depreciation persisted. - FY2024-Q3MaterialisedAnnual report
「Profit was significantly affected by struggling sales of gardening, agricultural and building materials, a core category, as well as persistently high raw-material prices, prolonged yen depreciation and higher procurement prices, resulting in a marked deterioration in gross margin.」
Struggling sales of gardening, agricultural and building materials, persistently high raw-material prices, prolonged yen depreciation and higher procurement prices have actually resulted in a marked deterioration in gross margin. - FY2024-Q2MaterialisedAnnual report
「Profit decreased year on year as sales of gardening and agricultural supplies, a core category, struggled, while procurement prices rose under the impact of persistently high raw-material prices and prolonged yen depreciation.」
Struggling sales of gardening and agricultural supplies, persistently high raw-material prices and higher procurement prices due to prolonged yen depreciation have actually resulted in a year-on-year decline in profit. - FY2024-Q1RestatedAnnual report
「The cost-push inflation caused by persistently high procurement prices and logistics costs resulting from soaring raw-material and energy prices is expected to continue, and the outlook is still expected to remain uncertain.」
The continued situation in which higher raw-material and energy prices, procurement prices and logistics costs could pressure the earnings environment is identified. - FY2023MaterialisedAnnual report
「Although improvements were seen from the overhaul of the store operating model and the promotion of EDLP initiatives, higher procurement costs for imported products caused by the rapid depreciation of the yen, deterioration in gross margin due to cost-push inflation, and higher water, electricity and gas expenses had a significant impact.」
Rapid yen depreciation, import procurement costs, cost-push inflation and higher water, electricity and gas expenses are described as having actually affected both gross-margin deterioration and profit. - FY2023-Q3MaterialisedAnnual report
「In terms of profit, the company saw improvement from renewing its store operating model and promoting EDLP initiatives, but gross profit margin deteriorated due to cost-push inflation, while higher utility costs also had a significant impact.」
It is reported that cost-push inflation-driven deterioration in gross margin and higher utility costs had a significant actual impact on profit. - FY2023-Q2WorsenedAnnual report
「In the retail industry, customer traffic improved in some sectors and formats as the Golden Week and Bon holidays arrived without activity restrictions for the first time in 3 years. However, the impact of higher prices for goods necessary for daily life and work on consumers' willingness to purchase and purchasing behavior is immeasurable, and the challenging operating environment is expected to continue.」
While customer traffic improved following the easing of activity restrictions, the impact of higher prices for necessities and other goods on purchasing appetite and behavior is highlighted, reaffirming the challenging earnings environment. - FY2023-Q1WorsenedAnnual report
「Meanwhile, the outlook remains uncertain, with concerns including higher procurement prices and logistics costs caused by soaring raw-material and energy prices amid the worsening Russia-Ukraine situation and rapid yen depreciation, as well as stagnant personal consumption accompanying higher merchandise prices.」
In addition to the previous cost increases and competitive pressures, soaring raw-material and energy prices, rapid yen depreciation, higher procurement prices and logistics costs, and concerns over stagnant personal consumption due to higher merchandise prices are identified, indicating that the earnings environment has become more challenging. - FY2022WorsenedAnnual report
「The retail industry also continues to face a challenging operating environment, including concerns over inflation caused by higher energy, raw-material and logistics costs and the weaker yen, the resulting downside risk to the economy, and risks of deterioration in disposable personal income and employment.」
In addition to the previous increases in labor and logistics costs and intensifying competition, higher energy and raw-material prices, yen depreciation-driven inflation, and deterioration in disposable income and employment are identified as factors that could pressure profitability. - FY2021MitigatedAnnual report
「As latent demand for improving the home environment emerged, sales remained firm and gross margin improved, centered on the core categories of tools, hardware and work supplies, renovation materials and exterior products, and gardening and agricultural supplies. The sales mix of private-label products also increased.」
Improvements in core-category sales, gross margin and the sales mix of private-label products are reported, indicating the results of measures addressing profitability risks from lower merchandise gross margins and higher costs. - FY2020-Q3RestatedAnnual report
「In the retail industry, the challenging operating environment continues due to the effects of a consumption tax increase on consumer sentiment, unsettled weather, repeated natural disasters, intensifying sales competition across industry boundaries, and rising labor and logistics costs.」
The cost and competitive environment that could pressure profitability, including higher labor and logistics costs, intensifying sales competition and natural disasters, continues to be identified. - FY2020-Q2RestatedAnnual report
「In the retail industry, the challenging operating environment continues due to rising labor and logistics costs, intensifying sales competition across industry boundaries, and the effects of natural disasters occurring across Japan.」
Higher labor and logistics costs, intensifying competition and natural disasters continue to be identified as factors that could pressure the earnings environment. - FY2020-Q1RestatedAnnual report
「In the retail industry, consumer sentiment has become more cautious ahead of an increase in the consumption tax rate, while the operating environment remains challenging due to rising labor costs, higher logistics costs and intensifying sales competition across industry boundaries.」
Higher labor costs, rising logistics costs and intensifying sales competition continue to be identified as the cost and competitive environment factors that could pressure profitability. - FY2019MitigatedAnnual report
「利益面では、新たな開発商品の導入、ＥＤＬＰ政策の推進、ＢＰＲ(ビジネスプロセス・リエンジニアリング)による更なるローコストオペレーションの追求により荒利益額、営業利益額が増加しました。」
Initiatives to control costs and improve profitability through product development, EDLP and BPR are described together with an increase in operating profit. - FY2019-Q3MitigatedAnnual report
「BPR (business process reengineering) and other measures reduced the types and volume of store work, contributing to further progress in low-cost operations. Selling, general and administrative expenses were contained, and consolidated results for the cumulative third quarter increased in both revenue and profit.」
The impact of reducing the effect of rising costs on profitability is described, through fewer store tasks under BPR and tighter control of selling, general and administrative expenses. - FY2019-Q2WorsenedAnnual report
「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately against a backdrop of solid corporate earnings and improving employment and income conditions, but uncertainty over the outlook increased further due to the impact on the global economy of escalating trade friction between the U.S. and China and rising prices for crude oil and other raw materials.」
The external environment is described as having explicitly worsened through higher raw-material prices, led by crude oil, in addition to the traditional risk of rising merchandise and raw-material costs, further increasing uncertainty about the outlook. - FY2019-Q1MitigatedAnnual report
「Unseasonable weather in May had a negative impact on sales and profit, particularly for gardening supplies. However, the Group was able to contain selling, general and administrative expenses through operational efficiencies achieved through business process re-engineering (BPR) and other measures, resulting in higher sales and higher profit for the consolidated cumulative period of the current first quarter.」
While adverse effects on sales and profit from unfavorable weather were reported, the document also described the containment of selling, general and administrative expenses through BPR and other measures, as well as increases in sales and profit, indicating a response to profitability concerns. - FY2018MaterialisedAnnual report
「The home improvement industry faced a challenging business environment as intensified competition with businesses in other industries and increases in labor and other costs put pressure on sales and profit.」
The document states that intensified competition with businesses in other industries and increases in labor and other costs actually put pressure on sales and profit. - FY2018-Q2RestatedAnnual report
「In terms of profit, the profit margin improved through an improvement in merchandise gross margin and more efficient operations through BPR (business process reengineering).」
The Company continues to describe measures addressing the deterioration in profitability that emerged in the previous year through improvements in the merchandise gross margin and efficiency gains through BPR. - FY2018-Q1MitigatedAnnual report
「Profit also exceeded the previous year's results, owing to an improvement in merchandise gross margin and more efficient operations through BPR (business process reengineering).」
In response to the deterioration in profitability caused by the lower merchandise gross margin described in the previous year, the Company describes an improvement in the merchandise gross margin, efficiency gains through BPR, and profit exceeding the previous year's actual result. - FY2017MaterialisedAnnual report
「However, because the merchandise gross margin fell below the previous year's actual result, operating profit and ordinary profit declined year on year in the consolidated fiscal year under review. The home improvement industry is also expected to face a challenging business environment, including intensifying competition with internet sales and businesses in other industries, as well as deteriorating profitability due to further cost increases.」
The merchandise gross margin fell below the previous year's actual result during the year, resulting in declines in operating profit and ordinary profit. For the following fiscal year and beyond, rising costs are identified as a risk to profitability.