Risk of customer decline and suspension of operations due to COVID-19
First written in FY2020. 7 of 14 entries say "Materialised", first in FY2020. Latest entry: FY2024.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「As COVID-19 was downgraded from Category II to Category V under the Infectious Diseases Control Law in May 2023, socioeconomic activity has been normalised. Although the impact is currently considered minor, we are working to reduce the risk by continuing to promote safe store environments where customers can shop with peace of mind.」
The company explains that the business impact of the infectious disease is currently minor following the change in its classification under the Infectious Diseases Control Law and the normalisation of socioeconomic activity. Efforts to create safe store environments are continuing. - FY2024-Q1MitigatedAnnual report
「During the first quarter of the fiscal year under review, the Japanese economy remained uncertain, despite expectations of a recovery in personal consumption as COVID-19 was reclassified as a Category V infectious disease in May and administrative restrictions on activities were eased. This was due in part to rising prices accompanying the global surge in raw material costs, heightened international tensions and the sharp depreciation of the yen.」
The environment surrounding business suspensions and declining customer numbers is improving following the reclassification of COVID-19 as a Category V infectious disease and the easing of activity restrictions. However, a recovery in personal consumption remains only an expectation, and uncertainty in the external environment persists. - FY2023MitigatedAnnual report
「The consolidated fiscal year under review (1 April 2022 to 31 March 2023): None.」
No loss attributable to COVID-19 was recorded during the consolidated fiscal year under review. Although the risk of infectious diseases itself remains, no losses arose from temporary closures or other measures taken in prior fiscal years. - FY2023-Q2No infectious disease-related loss in the current quarterAnnual report
「The second quarter of the fiscal year under review (1 April 2022 to 30 September 2022): None.」
While the impact of temporary closures and other measures related to infectious diseases continued, no loss attributable to COVID-19 was recorded during the six months ended 30 September 2022. - FY2023-Q1Lagged impact of activity restrictions and signs of recoveryAnnual report
「In the women's lingerie and related businesses, the number of inquiries and store visits declined due to the impact of activity restrictions from January through March this year resulting from the global spread of the Omicron variant. As a result, repeat purchases struggled to grow during the first quarter of the current consolidated cumulative period. Because repeat purchases of our shapewear products generally occur after three months due to changes in body shape, the decline in repeat purchases from April through June resulted in revenue remaining below plan during the first quarter of the current consolidated cumulative period.」
The decline in store visits and inquiries caused by activity restrictions from January through March emerged three months later as a decline in repeat purchases from April through June, resulting in revenue below plan. The document also states that inquiries and reservations improved after the impact of the infectious disease eased. - FY2022Infectious disease impact continued, but related losses narrowedAnnual report
「Although the risk is currently materializing due to COVID-19, we continue to conduct antigen testing for employees and are promoting the creation of a safe store environment where customers can visit with confidence through daily temperature checks, encouraging vaccination and mask wearing, and disinfection and cleaning.」
While it is stated that the infectious disease risk continues to materialize, infectious disease-related losses narrowed from ¥134.786 million in the previous fiscal year to ¥3.287 million. - FY2022-Q3Infectious disease impact continued, but related losses narrowedAnnual report
「In terms of profit, the weddings and banquets business showed signs of recovery after the COVID-19 state of emergency that continued through the end of September 2021 ended. However, profitability remained sluggish as wedding ceremonies continued to be postponed amid concerns about a renewed spread of COVID-19, including the emergence of new variants.」
The business showed signs of recovery after the end of the state of emergency, but wedding postponements continued amid concerns about new variants, and weak profitability in the weddings and banquets business persisted. Infectious disease-related losses declined from ¥115.168 million in the same period of the previous year to ¥3.264 million. - FY2022-Q2MaterialisedAnnual report
「Following the government's declaration of a state of emergency nationwide due to the spread of COVID-19, we temporarily closed some of the Group's stores and shortened their operating hours. Fixed costs incurred during store closures, including personnel expenses, rent and depreciation, were recognized as a loss attributable to COVID-19 in extraordinary losses.」
The impact of the infectious disease continued to materialize through the closure of some stores and reduced operating hours, and an infectious disease-related loss of ¥2.979 million was recognized as an extraordinary loss. - FY2022-Q1MaterialisedAnnual report
「Due to the renewed spread of COVID-19, we were forced to close some stores or operate them on reduced hours.」
The infectious disease risk continued to materialize in the first quarter through the closure of some stores and reduced operating hours. Postponements and reduced event sizes also continued in the weddings and banquets business. - FY2021MaterialisedAnnual report
「Following the spread of COVID-19, we temporarily closed our Group's stores nationwide to ensure the safety of customers and employees. Fixed costs incurred during the temporary closure, including personnel expenses, rent and depreciation, were recognized as an extraordinary loss attributable to COVID-19.」
The infectious disease risk materialized throughout the fiscal year through temporary closures of stores nationwide and infectious disease-related losses of ¥134.786 million. - FY2021-Q3MaterialisedAnnual report
「As restrictions on going out and on events and banquets continued for an extended period as infection-prevention measures, following the government's declaration of a state of emergency due to the spread of COVID-19, revenue in the women's lingerie and related businesses remained higher than in the same period of the previous year as a result of infection-prevention measures and other initiatives. Meanwhile, in the weddings and banquets business, postponements and cancellations continued, causing revenue and profit to fall substantially from the same period of the previous year.」
As restrictions on going out and events continued due to the prolonged infectious disease, revenue and profit in the weddings and banquets business were materially reduced by postponements and cancellations. - FY2021-Q2MaterialisedAnnual report
「From April through May of this year, the Group's stores were also forced to close or operate on reduced hours under the state of emergency declaration.」
The impact of COVID-19 continued to materialize as the closure of all stores and reduced operating hours from April through May 2020. Fixed costs and other expenses of ¥98 million incurred during the temporary closures were recognized as a loss attributable to the infectious disease in the quarterly consolidated income statement. - FY2021-Q1MaterialisedAnnual report
「Following the declaration of a state of emergency nationwide due to the spread of COVID-19, all of our Group's stores nationwide closed simultaneously for 12 days, from 25 April to 6 May, to ensure the safety of customers and employees.」
The infectious disease risk materialized in the form of a 12-day simultaneous closure of stores nationwide, and fixed costs of ¥92 million were recognized as an extraordinary loss attributable to COVID-19. - FY2020MaterialisedAnnual report
「If a serious infectious disease, including a novel influenza virus or COVID-19, occurs and spreads, our Group's business activities, results of operations and financial position may be affected across all businesses through customer declines and temporary business suspensions, among other effects.」
The spread of infectious diseases was first described as an independent risk common to all businesses. In practice, the spread of COVID-19 resulted in banquet cancellations, deteriorating store profitability and impairment losses on shares, among other effects.