Opening costs associated with accelerating store expansion and declining ordinary profit margin
First written in FY2018-Q2. 3 of 4 entries say "Advanced", first in FY2018. Latest entry: FY2024.
The whole theme swung hardest in 2026: 5 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Advanced".
- FY2024AdvancedAnnual report
「The number of stores in the sports club business reached 102 at the end of the fiscal year, following the opening of the Handa store in Handa, Aichi Prefecture, in July 2023, the Higashi-Hiroshima store in Higashi-Hiroshima, Hiroshima Prefecture, in November, and the Higashi-Kishiwada store in Kishiwada, Osaka Prefecture, in January 2024.」
The opening of 3 new stores made opening preparation expenses a factor behind higher costs. Capital expenditures for the fiscal year amounted to ¥3,557 million. - FY2024-Q3AdvancedAnnual report
「In the sports club business, the company conducted active advertising and promotional activities to restore membership. Although utility-related expenses have stabilised, they remain high, and various opening and preparation expenses for 2 new stores were recognised, contributing to higher costs.」
Various opening and preparation expenses for 2 new stores were recognised, making the higher costs associated with store openings a specific earnings factor for the cumulative third quarter. - FY2018AdvancedAnnual report
「Selling, general and administrative expenses amounted to ¥2,552 million, due mainly to an increase in development expenses associated with new store openings in the sports club business.」
The increase in development expenses associated with new store openings was reflected in full-year selling, general and administrative expenses of ¥2,552 million. - FY2018-Q2First statedAnnual report
「Although revenue performed steadily due to new store openings and an increase in average membership, the ordinary profit margin fell below the previous fiscal year. This was due mainly to the recognition of various opening expenses, including opening preparation expenses, as the company opened 8 stores this fiscal year (5 sports clubs and 3 hotels), compared with 5 stores in the previous fiscal year (3 sports clubs and 2 hotels).」
The company has for the first time explicitly stated the profitability impact: revenue increased, while the ordinary profit margin fell below the previous fiscal year due mainly to the recognition of various opening expenses associated with the increase in store openings.