Sustainable Growth under the Medium-Term Management Plan “CHALLENGE 2017”

「Against this backdrop, based on the Medium-Term Management Plan ending in the fiscal year ending March 2027, the Group has pursued the five basic strategies below, including improving the profitability of existing stores, expanding market share and strengthening governance, with the aim of achieving consolidated net sales of ¥210 billion, consolidated operating income of ¥17 billion and net income attributable to owners of the parent of ¥12.6 billion.」

「This is being implemented to enhance shareholder returns and improve capital efficiency, in accordance with the shareholder return policy set out in the Medium-Term Management Plan for the fiscal years ending March 2025 through March 2027.」

「In the fiscal year ending March 2027, the plan's final year, we aim to achieve consolidated net sales of ¥210 billion, consolidated operating income of ¥17 billion, net income attributable to owners of the parent of ¥12.6 billion and ROE of 6.6%.」

「We aim for sustainable growth by steadily executing the five "basic strategies" set out in the "Medium-Term Management Plan for the Fiscal Years Ending March 2025 to March 2027," for which the current fiscal year is the first year.」

「The Medium-Term Management Plan, which ends in the fiscal year ending March 2027, positions the three-year period as the phase for executing specific strategies to realize the Group's desired future state, and will further advance the previous Medium-Term Management Plan's management vision of "Transformation and Challenge in the Businesswear Business." In addition, through "Scrum Management," in which each organization engages with customers, operates independently and collaborates with others, we aim to achieve consolidated net sales of ¥210 billion, consolidated operating income of ¥17 billion, net income attributable to owners of the parent of ¥12.6 billion and return on equity (ROE) of 6.6% in the fiscal year ending March 2027, the plan's final year, and pursue sustainable growth.」

「As a unified Group, we will work to realize the three management visions of our Group's Medium-Term Management Plan "Aoyama Reborn 2023," which ends in the fiscal year ending March 2024: "Transformation and Challenge in the Businesswear Business," "Advancing Group Management" and "Sustainability Initiatives." We will also work to achieve our KPIs (key management indicators) and ESG targets for contributing to the development of a sustainable society through our business activities.」

「Under the Medium-Term Management Plan "Aoyama Reborn 2023," announced on 9 March 2021, we also plan to achieve consolidated net sales of ¥200 billion, consolidated operating income of ¥11 billion and consolidated net income of ¥8 billion in the fiscal year ending March 2024, its final year.」

「Under the Medium-Term Management Plan "Aoyama Reborn 2023," announced on 9 March 2021, we also plan to achieve consolidated net sales of ¥200 billion, consolidated operating income of ¥11 billion and consolidated net income of ¥8 billion in the fiscal year ending March 2024, its final year.」

「We are currently undertaking various initiatives to achieve the targets of the three-year Medium-Term Management Plan "CHALLENGE II 2020," which ends in the fiscal year ending March 2021.」

「This is being implemented as part of further enhancing shareholder returns, in accordance with the shareholder return policy set out in the Medium-Term Management Plan "CHALLENGE 2017" and the "Notice Regarding the Shareholder Return Policy," announced on 28 January 2015.」

「For the fiscal year ending March 2018, the final year of the plan, we initially projected net sales of ¥280 billion and operating income of ¥27 billion. However, we were forced to revise these figures downward because performance in the businesswear business is expected to fall below plan due to an insufficient number of new store openings and other factors, and in light of the current situation at American Eagle Outfitters, where the establishment of a profitable business structure has been delayed. Specifically, for the full year, consolidated net sales are projected at ¥260.7 billion, operating income at ¥22.5 billion, ordinary income at ¥23.1 billion and net income attributable to owners of the parent at ¥12.2 billion.」

「This is being implemented as part of further enhancing shareholder returns, in accordance with the shareholder return policy set out in the Medium-Term Management Plan "CHALLENGE 2017" and the "Notice Regarding the Shareholder Return Policy," announced on 28 January 2015.」

「We formulated the Medium-Term Management Plan "CHALLENGE 2017," with fiscal 2017 as its final year, and are currently implementing various initiatives to achieve its targets. Under the plan, the Group aims to achieve stable growth in its core business, the businesswear business, including by expanding womenswear sales, while actively expanding into areas such as the restaurant, overseas and new businesses by leveraging the strengths it has developed over the past 50 years—sales and store development capabilities, procurement capabilities, a commitment to quality and its customer base. We will build a stable business portfolio and strive to become a company that contributes to society through sustainable growth.」