Sales fluctuations caused by revision and new-title cycles and returns of trade publications

「To mitigate these risks as much as possible, the Group has sales staff visit key stores and check inventory to maintain appropriate distribution inventory levels for each product. At the same time, it addresses these risks through a combination of measures, including using online sales channels with lower return risk and launching e-books, which carry no return risk in the first place.」

「In estimating the refund liability, we use the mode method, calculated based on historical return rates after classifying items into categories such as books and magazines.」

「We are therefore reviewing our previous approach and pursuing structural cost reforms by optimizing inventories throughout the distribution network while actively streamlining and reducing labor in sales and back-office operations,」

「Previously, to provide for losses from product returns, the amount equivalent to the gross profit on expected returns, based on trade receivables at the end of the period, and the amount equivalent to disposal losses arising from returns were recorded as an allowance for sales returns under current liabilities. We have changed to a method under which revenue is not recognized for goods and products expected to be returned, and a refund liability is presented under current liabilities.」

「We are addressing this risk through a combination of measures, including using online sales channels with lower return risk and publishing e-books, which have no return risk.」

「Although this did not fully offset the scale of the decline in sales, the decrease in the provision for the allowance for sales returns accompanying the decline in sales resulted in decreases in both cost of sales and selling, general and administrative expenses from the first nine months of the previous fiscal year.」

「In terms of profit and loss, in addition to implementing thorough cost controls across all business areas, the provision for the allowance for sales returns declined as sales decreased,」

「We are working to reduce costs by carefully reviewing the planned number of publications and print runs for commercial publications in line with market needs,」

「For commercial publications, the company continued to focus on managing market inventories during the current fiscal year to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥492 million from the first nine months of the previous fiscal year.」

「For commercial publications, the company continued to focus on managing market inventories during the current fiscal year to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥423 million from the first six months of the previous fiscal year.」

「For commercial publications, the company continued to focus on managing market inventories during the current fiscal year to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥297 million from the first quarter of the previous fiscal year.」

「For commercial publications, the company continued to manage market inventories to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥456 million from the previous consolidated fiscal year.」

「For commercial publications, the company continued to manage market inventories to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥276 million from the previous year. Although sales of guidebooks and practical books exceeded the previous year's levels due to the launch of the new series and new titles described above, map sales fell below the previous year's level, while magazine sales were affected by the launch of a new series in the previous year, resulting in an overall decline in sales.」

「For commercial publications, the company continued to manage market inventories to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥131 million from the previous year.」

「For commercial publications, the company continued to manage market inventories to curb returns, which had been a factor behind the deterioration in performance, reducing the value of returns by ¥39 million from the previous year.」

「For commercial publications, the company implemented thorough management of market inventories to curb returns, which had been a factor behind the deterioration in performance in the previous consolidated fiscal year, improving the value of returns by ¥612 million from the previous year.」

「For commercial publications, the company implemented thorough management of market inventories to curb returns, which had been a factor behind the deterioration in performance in the previous consolidated fiscal year, reducing the value of returns by ¥378 million from the previous year. However, sales were affected by restraining product supplies to bookstore shelves to curb returns and by the absence of revisions to guidebook series like those published in the previous year. Commercial publication sales therefore fell by ¥104 million from the third quarter of the previous fiscal year to ¥4,121 million.」

「For commercial publications, the company implemented thorough management of market inventories to curb returns, which had been a factor behind the deterioration in performance in the previous consolidated fiscal year, reducing the value of returns by ¥380 million from the previous year.」

「For commercial publications, the company implemented thorough management of market inventories to curb returns, which had been a factor behind the deterioration in performance in the previous consolidated fiscal year, reducing the value of returns by ¥288 million from the previous year. However, sales of guidebooks declined because there were no revisions to guidebook series like those published in the previous year.」

「Although some hit products, such as "Shutokenhatsu Higaeri Otona no Chiisana Tabi," and the publication of the "Mapple Magazine mini" edition had a positive effect on commercial publications, there were no new series or full revisions of guidebook series like those in the previous consolidated fiscal year, and in-store sell-through at bookstores did not improve, resulting in a substantial decline in sales. In addition, returns of older editions for replacement following publication of revised "Mapple Magazine" editions ahead of Golden Week in the first quarter, and returns of older editions for replacement following publication of revised map products in the fourth quarter, both substantially exceeded expectations. Commercial publication sales were ¥5,876 million, down ¥2,073 million from the previous consolidated fiscal year, or 26.1% year on year.」

「For commercial publications, a large volume of returns of older editions, which had been limited in the first quarter of the previous fiscal year, was recorded in the first quarter of the current fiscal year due to changes in the publication schedules for revised maps and magazines at the end of the previous consolidated fiscal year. Sales were also affected by sluggish sell-through during the summer peak season and the absence of full revisions of major series. Commercial publication sales therefore fell sharply by ¥1,099 million from the third quarter of the previous fiscal year to ¥4,225 million.」

「For commercial publications, a large volume of returns of older editions, which had been limited in the first quarter of the previous fiscal year, was recorded in the first quarter of the current fiscal year due to changes in the publication schedules for revised maps and magazines at the end of the previous consolidated fiscal year. Sales also failed to grow due to frequent poor weekend weather during the second quarter. In addition, the absence of full revisions of major series and new publications contributed to the decline, with commercial publication sales falling sharply by ¥945 million from the second quarter of the previous fiscal year to ¥2,837 million.」

「For commercial publications, a large volume of returns of older editions, which had been limited in the first quarter of the previous fiscal year, was recorded in the first quarter of the current fiscal year due to changes in the publication schedules for revised maps and magazines at the end of the previous consolidated fiscal year. In addition, sales of commercial publications fell sharply by ¥798 million from the first quarter of the previous fiscal year to ¥1,287 million, partly because there were no full revisions of domestic guidebook series or new publications of new titles, as there had been in the first quarter of the previous fiscal year.」