Sluggish sales due to adverse weather and other factors

「The main factors included a decline following the increase in demand for disaster-prevention products caused by the Nankai Trough Earthquake advisory information and preparations for major typhoons in August last year. However, demand for vegetable seedlings, gardening nets and other products increased from early spring in the strengthened gardening and agriculture departments. In addition, due to the early end of the rainy season and the extreme heat, sales of products such as watering supplies and submersible pumps, as well as heatstroke-prevention products such as fan-equipped clothing, remained strong.」

「Although low temperatures and unsettled weather affected sales in early spring, performance remained firm as weather was generally favorable during the spring extended holiday period, when sales are high. In summer, the rainy season ended later than usual, but after its end, sales of summer products benefited from record heat, while disaster-prevention and disaster-response products saw movement due to preparations for the Nankai Trough earthquake and measures against major typhoons.」

「Customer traffic was sluggish in early spring because temperatures were low and there were many snowy and rainy days, resulting in weak performance. However, weather was generally favorable throughout the period, and performance remained firm.」

「In terms of sales trends, in addition to the effects of unsettled weather from spring through early summer and sluggish sales of seasonal products due to the warm winter, customers held back on purchases because of higher prices across a wide range of products. As a result, customer traffic declined significantly and sales fell below the previous fiscal year.」

「In terms of sales trends, the second quarter recovered from the first-quarter slump, and the third quarter also benefited from many days of favorable weather. As a result, sales for the cumulative period as a whole were maintained at approximately the same level as the year-earlier period.」

「The cumulative first quarter was sluggish as unsettled weather during the April and May holiday periods, when sales were expected to be strong, and on weekends affected customer traffic and purchasing sentiment. In the second quarter, excluding the effects of a typhoon during the Obon holiday period, favorable weather and aggressive promotional initiatives proved effective, and sales for the cumulative period as a whole exceeded the year-earlier period, recovering the first-quarter decline.」

「However, unsettled weather during the April and May holiday periods, when strong sales were expected, and on weekends affected customer traffic and purchasing sentiment, causing sales to fall below the year-earlier period.」

「The gardening and agriculture and gardening plants-related departments performed particularly well. In addition to the penetration of home gardening and the results of staff allocation and training to strengthen product capabilities and freshness management, favorable weather in each season, including during the spring extended holiday period, supported performance, which remained strong even including home appliances.」

「In the household goods and daily necessities departments, performance lacked momentum due to the decline following demand related to infection prevention, cautious customer purchasing in response to higher selling prices, and slow early sales of winter products because temperatures remained relatively high in late autumn, among other factors.」

「In addition, sales of summer products and products addressing extreme heat were strong due to the extreme heat during midsummer.」

「Gardening plants in particular performed well, supported by favorable weather during the extended holiday period, the establishment of stay-at-home demand from the past 1–2 years, and the effects of strengthening product capabilities and freshness management.」

「Although there was unsettled weather during midsummer, weather was generally favorable throughout the fiscal year. Gardening plants in particular outperformed even the strong previous fiscal year, partly due to the effects of strengthening product capabilities and freshness management.」

「Sales declined year on year, significantly affected by lower sales of hygiene products for infection prevention, partly due to the decline following the previous year’s surge in demand, and by unsettled weather during midsummer. In particular, from September onward, relatively favorable weather continued, and the gardening plants and agriculture-related departments outperformed the strong year-earlier period.」

「During the cumulative second quarter, net sales and operating revenue declined year on year, significantly affected by lower sales of hygiene products for infection prevention as supply to the market stabilized and demand fell following the previous year’s surge, as well as unsettled weather during midsummer, amid continued uncertainty over the end of the COVID-19 pandemic.」

「The relatively favorable weather,」

「Our core home improvement center business handles highly seasonal products such as air-conditioning and heating products, beach goods and festival supplies. Accordingly, if adverse weather conditions such as a cool summer or warm winter prevent us from achieving planned sales, net sales could decline and excess inventory could arise, potentially affecting business performance and financial condition.」

「Sales increased significantly year on year because demand for typhoon-preparation supplies rose in September, while in October and November the effect of the decline following the previous year’s consumption tax increase had dissipated.」

「During the cumulative second quarter, although the late end of the rainy season was a concern, net sales and operating revenue increased significantly year on year due to higher customer traffic resulting from increased demand for hygiene products, particularly alcohol gel and masks, for infection prevention, as well as gardening and DIY and repair-related products associated with staying at home, together with a recovery in demand for summer-related products as temperatures rose during midsummer.」

「Last summer, sales of summer products were sluggish due to the late end of the rainy season and other factors. The difficult sales environment continued, with the October consumption tax increase and poor sales of winter products resulting from a record warm winter, among other factors. As a result, the company could not offset the decline in revenue from the drugstore business transferred at the end of the previous fiscal year, and full-year operating revenue, comprising net sales and operating revenue, fell below the previous fiscal year.」

「In the home improvement center business, although sales of summer products were sluggish due to the late end of the rainy season and the early sales of winter products were slow because temperatures remained relatively high from November onward, revenue increased year on year due to strengthened promotional activities ahead of the consumption tax increase, including the home improvement center’s 50th anniversary campaign.」

「In the home improvement center business, sales exceeded the year-earlier period during the cumulative first quarter due to favorable weather in May. From July onward, however, sales of summer products did not grow as much as in the previous year, when temperatures were record high, due in part to the late end of the rainy season. In addition, as the previous year benefited from demand related to torrential-rain disasters, sales fell below the year-earlier period.」

「In the home improvement business, sales were below the same period of the previous year in early spring, mainly in the gardening and agriculture segment, because temperatures were low. In May, favorable weather supported growth in customer numbers, and performance remained firm.」

「Although demand for post-disaster recovery following the torrential rains in western Japan in July and sales of summer-related products benefited from the record heat, operating revenue for the full year, comprising net sales and operating revenue, fell below the previous fiscal year due to unsettled weather in May, when sales growth was expected, the mild winter and the closure of unprofitable stores.」

「In the home improvement center business, sales exceeded the year-earlier period due to strong sales of summer products resulting from the extreme heat, demand related to torrential-rain disasters and favorable weather from October onward.」

「In the home improvement center business, although sales were sluggish from May through June due to unsettled weather, sales exceeded the year-earlier period because of demand related to subsequent torrential-rain disasters and strong sales of summer products due to the extreme heat.」

「During the cumulative first quarter, sales were strong in early spring due to favorable weather, but declined year on year because of unsettled weather from May onward.」

「During the cumulative third quarter, net sales and operating revenue declined year on year, significantly affected by the transfer of the “Yellow Hat” franchise business at the beginning of the period and unsettled weather caused by repeated typhoons approaching the company’s operating areas from September onward.」

「Meanwhile, due to the effects of unsettled weather and other factors from September through the winter, gross profit declined from the previous fiscal year, as did operating profit, ordinary profit and net income.」

「From September onward, sales growth slowed because of adverse weather and other factors, and gross profit was slightly below the prior-year period.」