Fluctuations in product value due to fashion trends, exchange rates, precious metal prices, etc.
First written in FY2018. 7 of 20 entries say "Materialised", first in FY2019. Latest entry: FY2026-H1.
Valuence Holdings moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
1 other company's latest entry also says "Other".
- FY2026-H1Stable markets and higher bullion prices contributed to performanceAnnual report
「The gross profit margin for the first-half accounting period was 27.1%, up 1.5 percentage points year on year. This was due to the continued focus on procurement based on gross profit margins, an increase in the retail sales ratio, growth in auction fee revenue and the stable performance of market prices across product categories, among other factors.」
The gross profit margin improved by 1.5 percentage points year on year to 27.1%, due in part to stable market prices across product categories. - FY2025WorsenedAnnual report
「However, sales trends for some products may be significantly affected by economic obsolescence resulting from changes in trends, sharp fluctuations in foreign exchange rates and stock markets, higher tariffs imposed by countries due to international trade disputes and protectionism, the introduction of other non-tariff barriers, abrupt changes in economic sentiment, and fluctuations in bullion and watch prices.」
International trade disputes, protectionism and tariff increases, among other factors, were explicitly added to the existing risks associated with fluctuations in foreign exchange, precious-metals and watch prices. - FY2025-H1First-half gross profit margin improvementAnnual report
「The gross profit margin for the first-half accounting period was 25.6%, up 3.2 percentage points year on year. This was due to the continued focus on procurement based on gross profit margins, as well as firm market prices for watches and bags, among other factors.」
The gross profit margin reached 25.6%, improving 3.2 percentage points year on year. The factors cited were continued procurement focused on gross profit margins and firm market prices for watches and bags. - FY2024-Q3Lower cumulative gross profit margin and third-quarter improvementAnnual report
「The gross profit margin for the nine-month cumulative period was 23.5%, down 3.3 percentage points year on year, due to factors including higher unit procurement prices amid intensifying competition for purchases and the lower retail gross profit margin during the first-half cumulative period. However, after switching to purchasing focused on gross profit margins from the third quarter accounting period, the gross profit margin during that period improved by 3.1 percentage points from the second quarter accounting period to 25.5%.」
While the gross profit margin for the nine-month cumulative period fell 3.3 percentage points year on year, the margin for the third quarter accounting period alone improved by 3.1 percentage points to 25.5%. - FY2024-Q2MaterialisedAnnual report
「The gross profit margin for the first-half cumulative period was 22.4%, down 4.6 percentage points year on year. This was due to factors including higher unit procurement prices amid intensifying competition for purchases, a lower-than-usual retail gross profit margin resulting from sales of high-priced products, and an increase in bullion’s share of sales.」
Higher unit procurement prices, the retail sales mix and the higher proportion of bullion reduced the gross profit margin by 4.6 percentage points year on year to 22.4%. - FY2024-Q1MaterialisedAnnual report
「The gross profit margin for the first quarter cumulative period was 22.5%, down 4.2 percentage points year on year. This was due to factors including the bidding momentum at the Company’s own auctions, the delayed launch of retail operations and the impact of market prices for watches, bullion and diamonds, among others.」
The gross profit margin fell 4.2 percentage points year on year due to bidding momentum at the Company’s own auctions, the delayed launch of retail operations and market-price movements in watches, bullion and diamonds, among other factors. - FY2023Full-year gross profit margin improvementAnnual report
「The gross profit margin reached 26.3%, up 0.5 percentage points from the previous fiscal year, due to an increase in fee revenue from the expansion of consignment auctions and growth in retail sales, which have a higher gross profit margin.」
Growth in consignment fee revenue and retail sales improved the full-year gross profit margin by 0.5 percentage points to 26.3%. - FY2023-Q3Market recovery and gross profit margin improvementAnnual report
「Watch prices, which had been trending lower after peaking in February 2022, bottomed out and began to recover, while gold prices reached new highs. As a result, watches and bullion performed well. The gross profit margin for the nine-month cumulative period was 26.8%, up 0.9 percentage points year on year.」
Against a backdrop of recovering watch prices and new highs in gold prices, procurement of watches and bullion performed well, and the gross profit margin improved by 0.9 percentage points year on year. - FY2023-Q2WorsenedAnnual report
「Watch prices continued to trend lower after peaking in February 2022, creating a challenging environment for watch purchasing, while procurement of products other than watches progressed smoothly.」
Watch prices continued to trend lower, and the procurement environment for purchasing watches remained challenging. - FY2022Lower gross profit margin due to the bullion sales mixAnnual report
「The gross profit margin fell 0.7 percentage points from the previous fiscal year to 25.7%, mainly because bullion’s share of the sales mix increased.」
Changes in the sales mix accompanying the surge in bullion prices reduced the gross profit margin by 0.7 percentage points from the previous fiscal year to 25.7%. - FY2022-Q3Gross profit margin deterioration due to the sales mixAnnual report
「The gross profit margin deteriorated as the proportions of watches and bullion in the sales mix rose sharply. However, measures including changes to the way SBA events were held proved effective, leaving the gross profit margin for the nine-month cumulative period at approximately the same level as in the same period of the previous year.」
While the sharp increase in the proportions of watches and bullion in the sales mix worsened the gross profit margin, changes to the way SBA events were held and other measures kept the cumulative gross profit margin at approximately the same level as in the same period of the previous year. - FY2022-Q2Surging market prices and lower gross profit marginAnnual report
「In addition to the impact of a more dispersed partner base as the number of SBA events increased, the higher proportions of bullion and watches in the sales mix were factors that reduced the gross profit margin from the immediately preceding quarter.」
In addition to the more dispersed SBA partner base, the higher proportions of bullion and watches in the sales mix reduced the gross profit margin from the immediately preceding quarter. - FY2021Gross profit margin improvement after market volatilityAnnual report
「The gross profit margin temporarily deteriorated due to sharp fluctuations in watch prices, but improved thereafter following a review of the purchasing framework and has remained at a high level.」
While fluctuations in watch prices temporarily worsened the gross profit margin, a review of the purchasing framework, incorporation of SBA winning-bid data and an increase in the overseas sales ratio, among other factors, improved the full-year gross profit margin by 1.8 percentage points year on year to 26.4%. - FY2021-Q3Gross profit margin recovery amid market volatilityAnnual report
「The gross profit margin temporarily deteriorated during the second quarter accounting period due to the impact of fluctuations in watch prices. However, it recovered from February onward, reaching 27.5% during the third quarter accounting period, an improvement of 3.8 percentage points from the immediately preceding quarter.」
While fluctuations in watch prices caused the gross profit margin to deteriorate in the previous quarter, it recovered from February onward, reaching 27.5% in the third quarter accounting period. - FY2021-Q2MaterialisedAnnual report
「The procurement environment was challenging, with bullion prices also trending lower.」
The downward trend in bullion prices made the procurement environment more challenging. - FY2021-Q1MaterialisedAnnual report
「Although bullion prices remained high, they had been trending lower since reaching a multi-decade high in August 2020, and bullion’s share of sales declined.」
After bullion prices reached a new high, they began trending lower, and bullion’s share of sales declined, among other effects of market price movements on the product mix and performance. - FY2020MaterialisedAnnual report
「The gross profit margin fell 0.9 percentage points to 24.6% due to an increase in bullion sales accompanying the surge in bullion prices, resulting in gross profit below the previous fiscal year’s level.」
The surge in bullion prices and increase in bullion sales reduced the gross profit margin to 24.6%, with the impact of product-market price movements reflected in performance. - FY2020-Q2MaterialisedAnnual report
「In the second quarter, we refrained from conducting similar sales promotions because market prices were trending lower due in part to the impact of COVID-19. Instead, we prioritized securing the gross profit margin that should be earned in the future by selling through the optimal channels at the optimal times.」
In response to the downward trend in market prices caused by the impact of COVID-19, the Company refrained from promoting inventory sales and selected its sales channels and timing. - FY2019MaterialisedAnnual report
「The gross profit margin fell 1.7 percentage points from the previous fiscal year to 25.5%. This was mainly because a sharp appreciation of the yen from December to January coincided with the timing of domestic auctions, reducing winning bids, and because changes to internal purchasing operations increased procurement costs.」
Foreign exchange movements and higher procurement prices actually contributed to lower winning bids and the gross profit margin, bringing the risks of fluctuations in product value and sales trends to the fore. - FY2018First statedAnnual report
「However, some products may lose value due to economic obsolescence resulting from changes in trends, fluctuations in foreign exchange rates and precious-metals and bullion prices, while sales trends for other products may be significantly affected by whether popular or hit products are available to drive demand.」
The risks of fluctuations in product value and sales trends due to trends, foreign exchange, precious-metals prices and the presence or absence of popular products are identified for the first time.