Restoring our strengths through “Back Home” (a return to our roots)

「Revenue was ¥60,633 million, up 5.0% from the previous fiscal year, operating profit was ¥1,312 million, up 85.1%, ordinary profit was ¥1,358 million, up 71.7%, and net income attributable to owners of the parent was ¥1,107 million, up 44.0%. The company achieved results exceeding the targets set out in the “Revitalize Plan (Plan to Restore Profitability).”」

「Under the Revitalize Plan (plan to restore a profitable business structure), which ends in fiscal 2024, we have worked to restore profitability, reviewed our fixed-cost structure through measures such as workforce reductions and the closure or downsizing of locations, and proceeded to establish a sales approach focused on profitability in our core wholesale business.」

「We are currently working on the “Revitalize Plan (Plan to Restore a Profitable Business Structure)” to strengthen our earnings base. In particular, for our core wholesale business, we are working to establish a sales approach focused on profitability. To address the risk of higher costs resulting from yen depreciation and persistently high raw-material prices, we are also shifting production to Southeast Asia, utilizing tariff reductions and exemptions under RCEP (Regional Comprehensive Economic Partnership), and thoroughly reviewing ocean-transport methods and means. In addition, through projects aimed at restructuring businesses whose monetization is lagging, we are improving inventory turnover and reducing property-related expenses associated with the retail business, including e-commerce and store operations, with effects beginning to emerge in earnings.」

「Our Group is working on the “Revitalize Plan (Plan to Restore a Profitable Business Structure)” as a 3-year plan from FY2022 to FY2024, and in FY2024, the final year of the plan, intends to work toward building a solid earnings base as the culmination of the 3-year plan.」

「We are working on the “Revitalize Plan (Plan to Restore a Profitable Business Structure)” as a 3-year plan from FY2022 to FY2024 and focusing on recovering the earnings power of the wholesale business, our greatest challenge. In light of the entrenched trend toward yen depreciation and higher overseas production costs, we will review businesses where securing profitability is difficult and continue working to strengthen our earnings base.」

「We are implementing the “Revitalize Plan” (plan to restore a sustainably profitable business) as a three-year plan for fiscal 2022 through fiscal 2024. Regarding the recovery of earnings power in the wholesale business, our biggest challenge, we are working to consistently pursue a sales approach that curbs low-profitability orders while raising added value and securing appropriate profits, with a focus on improving the gross profit margin. Meanwhile, as production costs continue to rise due to surging energy prices and the established trend of yen depreciation, we are working to increase the production ratio in Southeast Asia. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥26,717 million, down 6.3% year on year; operating profit was ¥169 million, compared with an operating loss of ¥338 million in the same period of the previous year; ordinary profit was ¥249 million, compared with an ordinary loss of ¥119 million; and profit attributable to owners of the parent was ¥398 million, compared with a net loss of ¥466 million.」

「Against this backdrop, we are implementing the “Revitalize Plan” (plan to restore a sustainably profitable business) as a three-year plan for fiscal 2022 through fiscal 2024. Regarding the recovery of earnings power in the wholesale business, our biggest challenge, we are working to consistently pursue a sales approach that curbs low-profitability orders while raising added value and securing appropriate profits. We will continue to review the entire business process, from planning, proposals and production through logistics, clarify and share company-wide standards, and develop production bases in South and Southeast Asia, following the shift back to China during the COVID-19 pandemic, in order to firmly establish a sustainably profitable business.」

「Our group will continue implementing the “Revitalize Plan” (plan to restore a sustainably profitable business), improve earnings and establish a sustainably profitable business.」

「In addition, this fiscal year we launched the “Revitalize Plan” (plan to restore a sustainably profitable business), under which we are pursuing fixed-cost reductions by soliciting voluntary redundancies, downsizing the head office, relocating the Tokyo branch and deciding to consolidate and close overseas offices. We will continue implementing the “Revitalize Plan” (plan to restore a sustainably profitable business), improve earnings, carry out structural reforms and establish a sustainably profitable business.」

「This fiscal year, we will continue to address medium-term challenges, including “recovering the existing wholesale business” and “planning and proposing distinctive product groups.”」

「This fiscal year, the Company is pursuing four priority measures: “recovering the existing wholesale business,” “strengthening the retail business,” “planning and proposing distinctive product lines,” and “collaborating with companies in other industries.”」

「This fiscal year, we have identified four priority measures—“recovering the existing wholesale business,” “strengthening the retail business,” “planning and proposing distinctive product lines” and “collaboration with companies in other industries”—and are working to recover performance. Against this backdrop, businesses contributing to results include the launch of a new brand for families through collaboration with a major mass retailer, increased sales from expanding the brand lineup in the golfwear retail business, a recovery in fabric exports to European brands and the start of exclusive sales of the Italian natural cosmetics brand L'Erbolario」

「Against this backdrop, as key measures for the current fiscal year, the company is working on “a recovery in its existing wholesale business,” “strengthening its retail business,” “planning and proposing distinctive product lines,” and “business partnerships with companies in other industries.”」

「To accelerate these initiatives, without waiting for the new fiscal year we carried out an organizational restructuring effective 1 January. As part of this, we moved away from the previous divisional structure and adopted a flatter organization, thereby speeding up the implementation of company-wide policies and creating a structure better suited to promoting cross-organizational proposals for product groups across items and age groups.」

「Against this backdrop, the Company views the cause of its current difficulties as a problem requiring structural action rather than a temporary environmental factor, and considers it urgent to implement various measures promptly. Specifically, as its first priority, it is reforming the entire sales process with an external specialist team, including product planning from the consumer’s perspective that communicates distinctive features, close attention to materials and patterns, and diversification of sales-promotion methods.」

「The Company has adopted “Back Home” (a return to its roots) as its company-wide theme and is working to improve its gross profit margin by securing appropriate profit margins for each customer, while expanding the planning of high-value-added product lines and strengthening proposals. By continuing these initiatives, it will devote every effort to recovering its earning power.」

「Going forward, under the theme of “Back Home (Back to Basics),” we will strengthen proposals for high-value-added product lines and make every effort to recover sales and improve and raise earning power.」

「Against this backdrop, the Company adopted “Back Home” (a return to its roots) as its company-wide theme and, to restore performance quickly, has been strengthening proposals by reviewing and developing high-value-added product lines, while securing appropriate profit margins for each product and customer.」

「In light of these circumstances, we established “Back Home” (a return to our roots) as the company-wide theme for the year and focused on strengthening our product-planning capabilities, securing appropriate profit margins for each product and customer, and stabilizing quality through collaboration with production partner factories, thereby working to regain our strengths.」

「In the current fiscal year, against the backdrop of continued consumer preference for low prices in the apparel market and the resulting intense price competition among suppliers, we have adopted “Back Home” (a return to our roots) as our theme and are focusing on regaining our strengths.」

「In the current fiscal year, against the backdrop of continued consumer preference for low prices in the apparel market and the resulting intense price competition among suppliers, we have adopted “Back Home” (a return to our roots) as our theme and are focusing on regaining our strengths.」

「This fiscal year, in response to intensifying price competition among suppliers amid consumers’ preference for lower prices in the apparel market, the Company has adopted “Back Home” (a return to its roots) as its company-wide theme and is focusing on restoring its strengths.」

「In light of these circumstances, we have adopted “Back Home” (a return to our roots) as this fiscal year’s company-wide theme and will focus on restoring our strengths. First, we will provide trend-setting products with originality and fashion appeal, an area in which we began renewed efforts this fiscal year. Second, we will strengthen our mindset of prioritising profit.」