Weak performance of autumn/winter products due to insufficient product-planning precision

「Under the medium-term management plan launched in fiscal 2025, we are working to strengthen the existing wholesale business as our highest-priority initiative.」

「Under these circumstances, our group is working to improve product-planning precision by strengthening its information-gathering and analytical capabilities, shorten production lead times, and develop best-selling products. However, if competition intensifies further or we are unable to implement appropriate product policies in response to changes in trends that differ from our forecasts, our group’s results may be affected.」

「The apparel products handled by our group tend to be susceptible to changes in fashion trends, the impact of economic conditions on consumer sentiment, and constraints on selling prices due to competition with other companies. Under these circumstances, our group is working to improve product-planning precision by strengthening its information-gathering and analytical capabilities, shorten production lead times, and develop best-selling products. However, if competition intensifies further or we are unable to implement appropriate product policies in response to changes in trends that differ from our forecasts, our group’s results may be affected.」

「As a result of weather factors such as typhoons, heavy rainfall and the mild winter, as well as sluggish sales of young-oriented products in women’s apparel, net sales were ¥64,815 million, down 10.9% year on year.」

「From the second quarter onward, in addition to weather factors, sluggish sales of young-oriented products in women’s apparel caused company-wide net sales to stagnate.」

「However, initiatives undertaken from November onward did not produce sufficient results. Net sales for the consolidated fiscal year amounted to ¥72,751 million, down 6.7% year on year, while the decline in the gross profit margin resulted in an operating loss of ¥1,148 million, compared with operating income of ¥1,101 million in the previous fiscal year, and an ordinary loss of ¥1,099 million, compared with ordinary income of ¥1,089 million in the previous fiscal year.」

「The core women's apparel business continued to struggle due to insufficient orders for spring/summer merchandise. In addition, affected by this summer's unsettled weather, conditions remained difficult for recovering through autumn/winter merchandise.」

「Although the company began reviewing operations from the planning and proposal stages, including materials, design, functionality and fashion appeal, as part of efforts to rebuild its OEM and ODM businesses, its core women's apparel business continued to struggle due to insufficient orders from the previous fiscal year, and its spring/summer merchandise failed to translate into results.」

「The apparel products handled by our group tend to be susceptible to changes in fashion trends, the impact of economic conditions on consumer sentiment, and constraints on selling prices due to competition with other companies.」

「The company's autumn/winter merchandise, which generates the highest sales and profit contribution throughout the year, struggled because it was unable to fully demonstrate the precision of its product planning in response to consumers' entrenched preference for saving and growing awareness of the balance between price and quality.」