Improving Distribution Business Profitability Through Sales at Appropriate Prices and Reduced Operating Expenses
First written in FY2019-Q2. 14 of 23 entries say "Advanced", first in FY2019-Q3. Latest entry: FY2026.
30 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In the home-improvement center segment, net sales declined slightly from the previous fiscal year, mainly because of the impact of weaker consumer sentiment caused by rising prices. On the profit side, reviewing the product mix and strong sales of seasonal products helped improve the gross margin, while reductions in selling, general and administrative expenses resulted in a substantial increase in operating income from the previous fiscal year. As a result, net sales were ¥7,887 million, down 1.4% year on year, and operating income was ¥115 million, up 44.0%.」
The distribution business pursued a review of its product mix, sales of seasonal products and reductions in selling, general and administrative expenses, improving operating income to ¥115 million, up 44.0% year on year despite lower revenue. - FY2026-H1AdvancedAnnual report
「Although the business faced a challenging environment, including weaker consumer sentiment caused by rising prices and adverse weather, net sales remained slightly below the year-earlier level, while profit slightly exceeded the year-earlier level as a result of an improved gross margin. As a result, net sales were ¥4,066 million, down 2.3% year on year, and operating income was ¥122 million, up 1.6%.」
Despite the challenging consumer environment and lower revenue, the distribution business posted operating income of ¥122 million, up 1.6% year on year, owing to an improved gross margin. - FY2025AdvancedAnnual report
「Operating profit returned to profitability and exceeded the previous fiscal year's level because selling, general and administrative expenses declined due to the transfer of businesses, store closures, and other factors. As a result, revenue was ¥8,613 million, down 11.3% from the previous fiscal year, and operating profit was ¥185 million, compared with a loss of ¥78 million in the previous fiscal year.」
The distribution business posted lower revenue but turned an operating loss into operating income of ¥185 million, owing to lower selling, general and administrative expenses following the transfer of the mobile-phone dealership business and store closures. - FY2025-H1Lower revenue and profit despite sales initiativesAnnual report
「In addition to the decline in consumer sentiment caused by rising prices, seasonal products struggled amid adverse weather conditions. Although sales initiatives such as promotional campaigns were implemented, both net sales and operating income fell below the year-earlier levels. As a result, net sales were ¥4,161 million, down 8.7% year on year, and operating income was ¥120 million, down 27.8%.」
Despite strengthening sales through promotional campaigns and other measures, the distribution business was unable to offset the sluggish performance of seasonal products caused by rising prices, weaker consumer sentiment and adverse weather, resulting in lower revenue and earnings. - FY2024AdvancedAnnual report
「Operating profit returned to profitability and exceeded the previous fiscal year's level because selling, general and administrative expenses declined due to the transfer of businesses, store closures, and other factors. As a result, revenue was ¥8,613 million, down 11.3% from the previous fiscal year, and operating profit was ¥185 million, compared with a loss of ¥78 million in the previous fiscal year.」
Although revenue declined, the distribution business turned from an operating loss to operating profit of ¥185 million due to lower selling, general and administrative expenses following the transfer of the mobile phone agency business, store closures, and other factors. - FY2024-Q3AdvancedAnnual report
「Revenue declined in the home center business because sales of snow-removal supplies, cold-weather clothing, and other products fell due to the mild winter, in addition to the transfer of the mobile phone agency business carried out in the previous consolidated fiscal year and the closure of the main Teo Department Store in August 2023. Operating profit returned to profitability and exceeded the year-earlier level because selling, general and administrative expenses declined. As a result, revenue was ¥6,528 million, down 11.5% year on year, and operating profit was ¥172 million, compared with a loss of ¥26 million in the year-earlier period.」
Although revenue declined due to the transfer of the mobile phone agency business, the closure of the main store, and the mild winter, the distribution business returned to operating profitability of ¥172 million due to lower selling, general and administrative expenses. - FY2024-Q2AdvancedAnnual report
「Profit exceeded the year-earlier level due to reductions in selling, general and administrative expenses and a higher gross profit margin in the home center business. As a result, revenue was ¥4,560 million, down 7.8% year on year, and operating profit was ¥167 million, up 736.8%.」
Reductions in selling, general and administrative expenses and the higher gross profit margin in the home center business resulted in operating profit of ¥167 million in the distribution business, up 736.8% year on year. - FY2024-Q1AdvancedAnnual report
「However, revenue and operating profit exceeded the year-earlier levels as revenue increased due to the closing sale at the main Teo Department Store. As a result, revenue was ¥2,474 million, up 0.5% year on year, and operating profit was ¥118 million, up 1,255.9%.」
The closing sale at the main Teo Department Store resulted in a 0.5% year-on-year increase in revenue and a 1,255.9% increase in operating profit in the distribution business. - FY2023-Q3WorsenedAnnual report
「The business remained in a difficult environment as rising prices contributed to the continuing deterioration in consumer sentiment. In addition, factors including lower commission income in the mobile phone agency business caused revenue to fall below the year-earlier level, and the company recorded an operating loss.」
In addition to rising prices and weaker consumer sentiment, lower commission income in the mobile phone agency business caused the distribution business to deteriorate from operating profit of ¥156 million in the year-earlier period to an operating loss of ¥26 million. - FY2023-Q2Lower revenue and profit due to rising pricesAnnual report
「As the spread of the Omicron variant of COVID-19 remained unresolved, consumer sentiment continued to deteriorate amid rising prices driven by Russia's invasion of Ukraine, the yen's depreciation due to the Japan-US interest-rate differential, and other factors. Consequently, revenue and operating profit fell below the year-earlier levels. As a result, revenue was ¥4,945 million, down 14.5% year on year, and operating profit was ¥19 million, down 87.5%.」
Rising prices and weaker consumer sentiment caused revenue and operating profit in the distribution business to fall below the year-earlier levels, with operating profit down 87.5%. - FY2022Lower revenue and profit due to product mix revisions during the transition to the DCM partnershipAnnual report
「In the home center business, the spread of COVID-19 led to fewer customer visits following the application of priority preventive measures to prevent the spread of disease, in addition to a subsequent decline following the growth in sales of infection-prevention products in the previous consolidated fiscal year. Furthermore, the revision of the product mix for sale associated with the business alliance with DCM Inc. entered a transitional phase in the second half of the current consolidated fiscal year, resulting in a decline in sales.」
In addition to the subsequent decline in infection-prevention products and fewer customer visits, the revision of the product mix for sale associated with the business alliance with DCM entered a transitional phase, resulting in a 17.7% decline in revenue and a 64.7% decline in operating profit in the distribution business. - FY2022-Q3Lower revenue and profit due to a subsequent decline and fewer customer visitsAnnual report
「In the home center business, although the subsequent decline in infection-prevention products, which had increased in the year-earlier period, continued, sales of seasonal products such as snow-removal supplies grew due to record heavy snowfall and other factors. In other retail businesses, customer traffic, revenue, and operating profit declined significantly due to the impact of the priority preventive measures to prevent the spread of disease that began in January 2022. As a result, revenue was ¥8,429 million, down 18.2% year on year, and operating profit was ¥156 million, down 47.1%.」
Although the subsequent decline in infection-prevention products and fewer customer visits in other retail businesses resulted in lower revenue and profit, sales of seasonal products such as snow-removal supplies grew due to heavy snowfall. - FY2022-Q2Lower profit due to a subsequent decline and adoption of the accounting standardAnnual report
「Revenue and operating profit fell below the year-earlier levels because the subsequent decline in infection-prevention products, which had surged in the year-earlier period, continued, and because the Accounting Standard for Revenue Recognition and related standards were applied from the first quarter of the current consolidated fiscal year. As a result, revenue was ¥5,786 million, down 18.1% year on year, and operating profit was ¥159 million, down 41.4%.」
Although profitability improvement measures progressed, the distribution business reported lower revenue and profit due to the subsequent decline in infection-prevention products and the adoption of the revenue recognition accounting standard. - FY2021-Q3AdvancedAnnual report
「Revenue and operating profit exceeded the year-earlier levels due to increased demand for products related to preventing infections as the impact of the prolonged COVID-19 pandemic continued, as well as increased demand for stay-at-home products amid calls to refrain from going out. As a result, revenue was ¥10,300 million, up 2.8% year on year, and operating profit was ¥295 million, up 1,844.0%.」
In the distribution business, increased demand for infection-prevention and stay-at-home products resulted in higher revenue and profit, with operating profit improving by 1,844.0% year on year. - FY2021-Q2AdvancedAnnual report
「In the department store division, customer traffic declined following the departure of some tenants, but profitability improved through long-term events, mainly featuring furniture and other products, in vacant spaces. In the home center division, demand for products related to preventing novel coronavirus infections and demand for stay-at-home products continued to increase, and both revenue and operating profit exceeded the year-earlier levels.」
Operating profit in the distribution business reached ¥272 million, up 500.5% year on year, driven by long-term events and increased demand. This was described as progress in profitability improvement measures, including pricing at appropriate levels and reductions in operating expenses. - FY2020-Q3RestatedAnnual report
「In terms of profit, despite efforts to reduce operating expenses, profit fell below the year-earlier level as revenue declined.」
Although reductions in operating expenses continued, they could not offset the decline in revenue, and operating profit in the distribution business fell below the year-earlier level. - FY2020-Q2RestatedAnnual report
「Revenue fell below the year-earlier level due to the impact of unseasonable weather on seasonal products and the impact of a subsequent decline following the consumption tax increase. In terms of profit, despite efforts to reduce operating expenses, profit fell below the year-earlier level as revenue declined.」
Although reductions in operating expenses continued, they could not offset the decline in revenue caused by unseasonable weather and the subsequent decline following the consumption tax increase, and profit in the distribution business fell below the year-earlier level. - FY2020-Q1AdvancedAnnual report
「In terms of profit, the company exceeded the year-earlier level by working to improve its profit margin and reduce operating expenses.」
In the distribution business, operating profit exceeded the year-earlier level due to an improved profit margin and lower operating expenses. - FY2019-Q3AdvancedAnnual report
「In terms of profit, the company worked to improve profitability through pricing at appropriate levels and reductions in operating expenses, resulting in profit exceeding the year-earlier level.」
Through pricing at appropriate levels and reductions in operating expenses, operating profit in the distribution business improved from a loss of ¥151 million in the year-earlier period to profit of ¥75 million. - FY2019-Q2First statedAnnual report
「In terms of profit, the company worked to improve profitability through pricing at appropriate levels and reductions in operating expenses, resulting in profit exceeding the year-earlier level.」
The company has, for the first time, specifically identified pricing at appropriate levels and reductions in operating expenses as measures to improve profitability in the distribution business.