Improved Profitability in the General Merchandise Mail-Order Business through Lower Logistics Costs

「In the apparel and household goods e-commerce business, the company restrained advertising and sales promotion expenses to prioritize profitability in response to persistently high raw material and supply prices and higher direct-mail delivery charges. The closure of the loss-making fashion e-commerce marketplace service reduced revenue but improved profitability. As a result, revenue was ¥32,262 million, down 8.8% year on year, and the segment loss was ¥930 million, compared with a segment loss of ¥1,543 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, purchase costs remained high due to elevated raw material and supply prices, while paper and printing costs also remained high. The company therefore focused on profitability by reducing advertising and sales promotion expenses, including by issuing fewer print materials. The number of new customers increased as acquisition efficiency improved, but the number of active customers was flat because the repeat purchase rate among existing customers fell short of the plan. As a result, revenue was ¥74,836 million, up 0.8% year on year, and the segment loss was ¥1,696 million, compared with a segment loss of ¥2,992 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, purchase costs increased due to the weaker yen and higher raw material and supply prices, prompting the company to reduce advertising and sales promotion expenses. The response rate improved as the company differentiated product pricing and focused on strengthening product appeal, while the numbers of new and active customers increased from the same period of the previous year. As a result, revenue was ¥35,366 million, up 1.6% year on year, and the segment loss was ¥1,543 million, compared with a segment loss of ¥1,340 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, the weaker yen and higher raw material and supply costs increased purchase costs and the cost of print materials such as catalogs and flyers. The company therefore prioritized profitability by revising product prices and reducing the volume of print materials issued. Although price increases lifted the average order value, the number of orders tended to slow by more than the increase in average order value. The reduction in print volume also led to fewer new customers acquired, and active customers trended downward. As a result, revenue was ¥74,251 million, down 15.9% year on year, and the segment loss was ¥2,992 million, compared with segment profit of ¥930 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, the weaker yen and higher raw material, supply, paper and printing costs increased purchase costs and advertising expenses, prompting the company to revise product prices and reduce the volume of print materials issued. This worsened responses, and although product prices were revised again, there was no significant improvement. The reduction in print volume also led to fewer new customers acquired, and active customers trended downward. As a result, revenue was ¥58,844 million, down 16.5% year on year, and the segment loss was ¥1,539 million, compared with segment profit of ¥1,811 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, purchase costs rose due to the impact of the weaker yen and higher raw material and supply prices, prompting the company to revise product prices and reduce the volume of print materials issued. Although price increases lifted the average order value, responses showed a tendency to slow. The reduction in print volume also led to fewer new customers acquired, and active customers trended downward. As a result, revenue was ¥34,822 million, down 18.1% year on year, and the segment loss was ¥1,340 million, compared with a segment loss of ¥33 million in the same period of the previous year.」

「In the apparel and household goods e-commerce business, the company revised product prices and reduced the volume of print materials issued in response to higher raw material and supply prices. Although the revision of product prices increased the average order value, responses showed a tendency to slow. In addition, the reduction in print volume led to fewer new customers acquired, and the number of active customers also trended downward. As a result, revenue was ¥21,911 million, down 17.5% year on year, and segment profit was ¥278 million, down 66.0% year on year. The company will maintain competitiveness by setting prices with market trends in mind, while continuing to manage the business with a focus on profitability rather than sales growth.」

「In the mail-order business, the impact of the spread of COVID-19 subsided from the first quarter, resulting in a trend toward slower responses from existing customers. At the same time, the company reduced advertising and sales promotion expenses and, in response to the sharp depreciation of the yen and surging raw material prices, revised product prices from the third quarter, prioritizing the securing of profitability. As a result, revenue was ¥70,480 million, down 9.5% year on year, and segment profit was ¥1,811 million, down 12.3% year on year.」

「In the mail-order business, the impact of the spread of COVID-19 subsided, while the trend toward slower responses from existing customers continued. The company therefore reduced advertising and sales promotion expenses and prioritized securing profitability. As a result, revenue was ¥42,501 million, down 9.7% year on year, and the segment loss was ¥33 million, compared with a segment loss of ¥525 million in the same period of the previous year.」

「In the first and second quarters, the company conducted active advertising and sales promotion, but profitability declined as the impact of the spread of COVID-19 subsided and existing customers responded less strongly than in the same period of the previous year. In the third quarter, the trend toward slower responses from existing customers continued, but the company prioritized securing profitability by taking measures including reducing advertising and sales promotion expenses. As a result, although the third quarter recorded lower revenue and profit than in the same period of the previous year, the decline in profit narrowed significantly compared with the cumulative second-quarter consolidated period. Revenue for the nine-month consolidated period was ¥77,841 million, up 0.8% year on year, and segment profit was ¥2,064 million, down 58.3% year on year.」

「The increase in active customers and continued active advertising and sales promotion lifted revenue to ¥47,044 million, up 4.6% year on year. However, as the impact of the spread of COVID-19 subsided and existing customers responded less strongly than in the same period of the previous year, the segment recorded a loss of ¥525 million, compared with segment profit of ¥1,729 million in the same period of the previous year.」

「Against the backdrop of the spread of COVID-19, rising demand for mail-order sales, particularly of household goods and homewear, together with active advertising and sales promotion, lifted revenue to ¥69,554 million, up 19.7% year on year, and segment profit to ¥4,890 million, up 169.2% year on year.」

「Against the backdrop of the spread of COVID-19, rising demand for mail-order sales, particularly of household goods and homewear, lifted revenue to ¥40,452 million, up 13.8% year on year, and segment profit to ¥1,861 million, up 527.7% year on year.」

「Against the backdrop of the spread of COVID-19, rising demand for mail-order sales, particularly of household goods and homewear, lifted revenue to ¥24,671 million, up 14.9% year on year, and segment profit to ¥1,897 million, up 141.0% year on year.」

「Revenue was ¥58,127 million, down 5.0% year on year, and segment profit was ¥1,816 million, down 46.0% year on year, due mainly to the impact of limiting the number of catalogs and other materials issued in response to higher paper costs.」

「Revenue was ¥35,535 million, down 1.3% year on year, and segment profit was ¥296 million, down 64.4% year on year, due mainly to the impact of limiting the number of catalogs and other materials issued in response to higher paper costs.」

「Revenue was ¥21,466 million, down 5.2% year on year, and segment profit was ¥787 million, down 39.2% year on year, due mainly to the impact of reducing the number of catalogs and other materials issued in response to higher paper costs.」

「Revenue was ¥77,603 million, down 1.3% year on year, and segment profit was ¥3,816 million, down 10.5% year on year, due mainly to the impact of higher shipping charges and other factors.」

「Revenue was ¥61,196 million, down 0.3% year on year, and segment profit was ¥3,362 million, down 11.8% year on year, due mainly to the impact of higher shipping charges and other factors.」

「[General merchandise e-commerce business] Revenue was ¥36,017 million, down 3.3% year on year, due mainly to delays in issuing catalogs and other factors. Segment profit was ¥832 million, down 23.9% year on year, mainly due to higher shipping charges and other factors.」

「Segment profit was ¥1,295 million, down 16.1% year on year, as an improved cost ratio was offset by higher shipping charges and other factors.」

「Segment profit was ¥4,263 million, down 4.7% year on year, as improvements in the cost ratio and media cost ratio were offset by surging logistics costs and other factors.」

「Segment profit was ¥3,813 million, up 5.3% year on year, reflecting the effect of higher revenue and an improved media cost ratio.」

「Segment profit was ¥1,093 million, up 4.8% year on year, reflecting the effect of higher revenue and an improved media cost ratio.」

「Segment profit was ¥1,543 million, up 13.9% year on year, reflecting the effect of higher revenue and an improved media cost ratio.」

「Strong online sales lifted revenue to ¥57,646 million, up 6.3% year on year. Segment profit was ¥3,621 million, up 32.6% year on year, mainly due to improvements in the cost ratio and logistics cost ratio.」

「Segment profit was ¥1,043 million, up 18.6% year on year, mainly due to improvements in the cost ratio and logistics cost ratio.」

「Segment income was ¥1,354 million, up 24.7% year on year, mainly because of an improvement in the logistics cost ratio.」