Improving Profitability by Controlling the Cost Structure
First written in FY2016. 10 of 33 entries say "Advanced", first in FY2018-Q2. Latest entry: FY2026.
- FY2026Profitability deteriorated because of impairment losses, voluntary product recalls and inventory valuation lossesAnnual report
「In terms of earnings, gross profit declined because inventory valuation losses due to sluggish sales increased substantially and products were subject to a voluntary recall. On the expense side, expenses declined substantially year on year because depreciation decreased following impairment losses on property, plant and equipment, and because labor costs, promotional expenses, system costs and other expenses were controlled. However, the segment recorded a loss of ¥1,177 million, compared with a segment loss of ¥869 million in the same period of the prior year.」
Although expenses were controlled, increased inventory valuation losses due to sluggish sales, a voluntary product recall and impairment losses on property, plant and equipment caused the loss in the women's innerwear business to widen from the prior year. - FY2026-H1Losses widen on higher costs and inventory valuation lossesAnnual report
「In terms of earnings, although the company implemented price revisions, the gross margin fell substantially below the prior-year level because of the impact of higher costs and inventory valuation losses exceeding those of the prior year. In addition, costs related to the medium-term management plan, promotional expenses and other costs increased, resulting in a segment loss of ¥375 million, compared with a segment loss of ¥247 million in the same interim period of the prior year.」
Despite implementing price revisions, higher costs, inventory valuation losses and costs related to the medium-term management plan caused the loss in the women's innerwear business to widen from the prior-year level. - FY2025Losses from surging raw-material costs and inventory valuation lossesAnnual report
「In product costs, surging raw-material prices pushed down the gross margin, while inventory valuation losses increased substantially because of sluggish sales. On the expense side, costs related to implementing the medium-term management plan increased, and changes to the useful lives of property, plant and equipment arose in connection with the review of the sales structure. As a result, the segment recorded a loss of ¥869 million, compared with segment profit of ¥341 million in the same period of the prior year.」
In addition to surging raw-material prices and increased inventory valuation losses due to sluggish sales, costs related to implementing the plan and reviewing the sales structure were incurred, causing the women's innerwear and related sales business to swing from a prior-year profit to a loss of ¥869 million. - FY2025-H1Gross margin declines amid excess inventory and surging raw-material costsAnnual report
「Excess inventory resulting from lower sales and a further surge in raw-material prices pushed down the gross margin, resulting in a segment loss of ¥247 million, compared with segment profit of ¥350 million in the same interim period of the prior year.」
While cost controls were pursued, excess inventory resulting from lower sales and surging raw-material prices pushed down the gross margin, causing the women's innerwear and related sales business to swing from a profit in the prior year to an interim-period loss. - FY2024AdvancedAnnual report
「(c) Reform of the earnings structure ・Review of the cost structure: promotion of capital-cost management through effective use of assets, among other measures」
In addition to continuing cost reductions, the new medium-term management plan explicitly sets out reform of the earnings structure, effective use of assets and capital-cost management. The company has also sold its head office and distribution center and relocated its head office. - FY2024-Q3AdvancedAnnual report
「Segment profit increased substantially to ¥550 million (up 73.6% year on year), reflecting higher sales and the benefits of fixed-cost reductions.」
Fixed-cost reductions were identified as a factor behind the increase in segment profit alongside higher sales. Segment profit for the women's innerwear and related sales business was ¥550 million, up 73.6% year on year. - FY2024-Q2Decision to improve facilities-cost efficiency through head-office relocation and opening of new sitesAnnual report
「Relocation schedule ① Head-office building: around April 2024 (scheduled) ② Port Island office: around June 2024 (scheduled) ③ Sannomiya office: around April 2024 (scheduled) 3. Reasons for the relocation After comprehensively considering the development of a workplace environment aimed at reforming the organizational culture and improving employees' operational efficiency and productivity in pursuit of the Group vision, as well as improving the efficiency of facility maintenance and management costs, the company decided to relocate.」
The company decided to relocate head-office functions and open 2 new sites to improve the workplace environment and productivity and enhance the efficiency of facility maintenance and management costs. - FY2024-Q1AdvancedAnnual report
「Segment profit was ¥140 million (up 67.8% year on year). As described above, the company implemented price revisions to pass through appropriate costs, although the price increases were not fully reflected because of advance demand before the revisions. Earnings also benefited from the review of the logistics system, which had been underway since the prior year, and reductions in fixed costs such as labor expenses.」
The benefits of reviewing the logistics system and reducing fixed costs such as labor expenses were evident, with segment profit for the women's innerwear and related sales business increasing 67.8% year on year to ¥140 million. - FY2023Lower profit despite labor-cost reductions from voluntary retirementsAnnual report
「In terms of earnings, the company worked to reduce fixed costs, including labor costs through voluntary retirements. However, the substantial decline in sales of shower heads and other products, together with the failure to reduce inventory losses to the level achieved in the prior year, resulted in segment profit of ¥161 million (down 73.4% year on year).」
While fixed-cost reductions, including labor-cost reductions through voluntary retirements, were pursued, lower sales of shower heads and other products and less progress in reducing inventory losses than in the prior year resulted in profit of ¥161 million for the women's innerwear and related sales business, down 73.4% year on year. - FY2023-Q3Reduced inventory-loss benefit and lower profitAnnual report
「As a result, net sales were ¥9,272 million (down 11.3% year on year). In terms of earnings, the company worked to reduce fixed costs by lowering labor costs through voluntary retirements and by reducing other fixed costs, while strong sales of outerwear products helped reduce inventory losses. However, the substantial decline in sales of shower heads and other products, together with the failure to reduce inventory losses to the level achieved in the prior year, resulted in segment profit of ¥317 million (down 49.7% year on year).」
Despite reducing labor costs through voluntary retirements and cutting fixed costs, inventory losses could not be reduced to the level achieved in the prior year, while lower sales of shower heads and other products also weighed on earnings. Segment profit for the women's innerwear and related sales business fell 49.7% year on year. - FY2023-Q2Profit improvement stalled as inventory-loss reductions fell shortAnnual report
「As a result, net sales were ¥5,765 million (down 13.7% year on year). In terms of earnings, the prior fiscal year benefited from lower inventory losses resulting from discount sales of certain products and the launch of a shower-head product by a subsidiary, which helped improve margins. In the current fiscal year, however, the substantial decline in sales, together with the failure to achieve a significant reduction in inventory losses, resulted in segment profit of ¥182 million (down 54.6% year on year).」
The reduction in inventory losses that contributed to margin improvement in the prior fiscal year was not achieved to a significant extent in the current fiscal year, and segment profit for the women's innerwear and related sales business fell 54.6% year on year. - FY2022AdvancedAnnual report
「Reduced inventory losses from discount sales led to improved margins.」
The company stated that discount sales of some apparel products reduced inventory losses, improving segment profit for the women's innerwear and related sales business from a loss in the prior year to a profit. - FY2022-Q3AdvancedAnnual report
「As a result, net sales were ¥10,449 million (up 1.5% year on year), while segment profit was ¥630 million, compared with a segment loss of ¥730 million in the same quarter of the prior year. This reflected lower temporary expenses related to COVID-19 and reduced inventory losses due in part to discount sales of some apparel products.」
Reduced temporary expenses related to COVID-19 and lower inventory losses from discount sales of certain products improved the women's innerwear and related sales business from a loss of ¥730 million in the same quarter of the prior year to a profit of ¥630 million. - FY2022-Q2AdvancedAnnual report
「As a result, net sales were ¥6,676 million (up 4.5% year on year), while segment profit was ¥400 million, compared with a segment loss of ¥767 million in the same quarter of the prior year. This reflected lower temporary expenses related to COVID-19 and reduced inventory losses due to differences in the product mix and launch timing, among other factors.」
Lower temporary expenses and reduced inventory losses improved segment earnings for the women's innerwear and related sales business from a loss of ¥767 million in the same quarter of the prior year to a profit of ¥400 million. However, the disclosure does not state that structural cost improvements were achieved. - FY2021WorsenedAnnual report
「Although inventory losses increased because of sluggish sales of limited-quantity products and promotional expenses rose due to measures to support business members, the decline in net sales was substantial, resulting in a segment loss of ¥1,057 million.」
While efficiency measures such as optimizing staffing and reducing operations were implemented, increased inventory losses and promotional expenses, together with a substantial decline in revenue, resulted in a segment loss of ¥1,057 million for the women's innerwear and related sales business. - FY2021-Q1WorsenedAnnual report
「As a result, for the cumulative first quarter, net sales declined to ¥2,662 million (down 20.8% year on year). In terms of earnings, operating loss was ¥539 million, compared with an operating loss of ¥102 million in the same quarter of the prior year; ordinary loss was ¥530 million, compared with an ordinary loss of ¥99 million; and net loss for the quarter was ¥1,055 million, compared with a net loss for the quarter of ¥74 million, partly due to the reversal of deferred tax assets.」
Despite ongoing cost-control efforts, lower revenue led to a substantial year-on-year increase in operating loss, ordinary loss and net loss, resulting in weaker profitability. - FY2020AdvancedAnnual report
「Selling, general and administrative expenses were reduced to ¥7,044 million, a reduction of ¥306 million (4.2% year on year), due in part to lower shipping costs following the change in the logistics provider and the decision to refrain from planned sales and promotional activities because of COVID-19.」
Selling, general and administrative expenses were reduced by ¥306 million, or 4.2%, year on year, mainly due to lower shipping costs following the change in the logistics provider. However, operating profit was below the prior-year level because of lower sales and increased inventory losses. - FY2020-Q3AdvancedAnnual report
「Although revenue declined, lower selling, general and administrative expenses resulted in operating profit of ¥486 million, up 10.2% year on year, and ordinary profit of ¥501 million, up 11.8%. Quarterly net profit was ¥230 million, down 20.7%, after the integration of 2 branches into a single operating structure generated an extraordinary loss of ¥100 million from branch closures.」
Despite lower revenue, operating profit increased 10.2% year on year and ordinary profit increased 11.8% because of lower selling, general and administrative expenses. - FY2020-Q2First-half profit improved because of lower SG&A expensesAnnual report
「As a result, revenue for the cumulative second quarter ended period was ¥8,138 million, up 1.1% year on year. Higher revenue and lower selling, general and administrative expenses resulted in operating profit of ¥373 million, up 236.0%, ordinary profit of ¥383 million, up 230.7%, and quarterly net profit of ¥252 million, up 282.5%.」
Lower selling, general and administrative expenses and higher revenue drove operating profit, ordinary profit and quarterly net profit substantially above the same period of the previous year. No name or details of new cost-reduction measures were provided. - FY2019Profit declined despite thorough cost reductionsAnnual report
「Gross profit fell substantially because of lower revenue and higher inventory losses. Despite efforts to reduce costs thoroughly, operating profit was ¥363 million, down 32.3% year on year, ordinary profit was ¥373 million, down 33.2%, and net profit was ¥223 million, down 31.0%.」
Thorough cost reductions were implemented in response to higher inventory losses and other factors, but operating profit, ordinary profit and net profit all fell below the previous year. - FY2019-Q2Profitability deteriorated because of higher inventory lossesAnnual report
「As a result, revenue for the cumulative second quarter ended period was ¥8,048 million, down 6.2% year on year. Lower revenue and higher inventory losses resulted in operating profit of ¥111 million, down 76.5%, ordinary profit of ¥116 million, down 76.1%, and quarterly net profit of ¥66 million, down 78.5%.」
In addition to the previously reported increases in delivery charges and other costs, lower revenue and higher inventory losses pressured profit during the cumulative quarter. No specific new cost-control measures are described. - FY2019-Q1Profitability deteriorated because of higher delivery charges and other factorsAnnual report
「Lower revenue and higher costs, including shipping expenses, resulting from increased delivery charges led to an operating loss of ¥154 million, compared with operating profit of ¥168 million in the same quarter of the previous year. Ordinary loss was ¥152 million, compared with ordinary profit of ¥173 million, and quarterly net loss was ¥111 million, compared with quarterly net profit of ¥145 million.」
Higher shipping and other costs resulting from increased delivery charges, together with lower revenue, pressured profit, and operating profit, ordinary profit and quarterly net profit all fell into the red. - FY2018Profitability improvement fell short of targetAnnual report
「The company implemented recurring expense reductions to structurally restrain costs expected to increase over the medium to long term and improve profitability. However, a substantial increase in logistics costs associated with higher delivery charges had a significant impact on profit and other results. Combined with the decline in revenue, this meant that profitability did not improve in the fiscal year.」
Although recurring expense reductions were implemented, profitability did not improve during the fiscal year because of higher logistics costs resulting from increased delivery charges and lower revenue. - FY2018-Q3RestatedAnnual report
「As a result, revenue for the cumulative third quarter ended period was ¥14,070 million, down 2.4% from the same quarter of the previous year, as sluggish apparel and cosmetics sales offset health food sales exceeding the previous year. Despite efforts to reduce expenses, the impact of higher delivery charges from September and other factors resulted in operating profit of ¥616 million, down 17.8% year on year, ordinary profit of ¥635 million, down 17.6%, and quarterly net profit of ¥267 million, down 25.0%.」
Despite continued expense reductions, profit fell below the same period of the previous year because of the impact of higher delivery charges and other factors. No additional specific cost-control measures are described. - FY2018-Q2AdvancedAnnual report
「Cost reductions implemented to address the increase in delivery unit prices from September resulted in operating profit of ¥473 million, up 77.1% from the same quarter of the previous year, ordinary profit of ¥486 million, up 71.9%, and quarterly net profit of ¥307 million, up 116.5%.」
The company implemented cost reductions to address higher delivery unit prices. Increases in operating profit and other metrics were also reported. - FY2018-Q1RestatedAnnual report
「Against this backdrop, based on the medium-term management plan, we actively pursued the revitalization of the sales organization, strengthening contact points between business members and customers, strengthening product development, improving profitability, and developing and expanding new businesses.」
Improving profitability has been reiterated as an ongoing issue under the medium-term management plan, but no new specific cost-control measures are described. - FY2017RestatedAnnual report
「The company will structurally restrain costs expected to increase over the medium to long term and work to improve profitability.」
The company continues to pursue a policy of restraining costs and improving profitability over the medium to long term. - FY2017-Q3RestatedAnnual report
「To this end, based on the medium-term management plan, we are actively pursuing the revitalization of the sales organization, strengthening contact points between business members and customers, strengthening product development, improving profitability, and developing and expanding new businesses.」
Improving profitability has been reiterated as an ongoing issue under the medium-term management plan. - FY2017-Q2RestatedAnnual report
「To this end, based on the medium-term management plan, we will actively pursue the revitalization of the sales organization, strengthening contact points between business members and customers, strengthening product development, improving profitability, and developing and expanding new businesses.」
Improving profitability has been reiterated as an ongoing issue under the medium-term management plan. - FY2017-Q1RestatedAnnual report
「To this end, based on the medium-term management plan, we will actively pursue the revitalization of the sales organization, strengthening contact points between business members and customers, strengthening product development, improving profitability, and developing and expanding new businesses.」
Improving profitability has been reiterated as an ongoing issue under the medium-term management plan. - FY2016First statedAnnual report
「The company will structurally restrain costs expected to increase over the medium to long term and work to improve profitability.」
This is stated as one item in the medium-term management policy.