Results Briefing: Q2ND(March to August 2020)
Results of 2021 Ending Feb.
2020.10.5
I. Results Overview
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Unit:Million Yen
Cumulative Q2ND 2020
Cumulative Q2ND 2021 Ending Feb.
Ending Feb.
Composition Composition Y/Y Against Plan Against
Results Results Y/Y (%)
Rate (%) Rate (%) Change (Change) Plan(％)
Net Sales 81,847 100.0 56,270 100.0 -25,576 68.8 ▲229 99.6
Gross Profit 43,908 53.6 24,169 43.0 -19,739 55.0 - -
SG&A Expenses 44,072 53.8 34,639 61.6 -9,433 78.6 - -
SG&A Expenses(excl. Goodwill Amortization, Depreciation and Amortization) 41,426 50.6 32,507 57.8 -8,919 78.5 - -
Goodwill Amortization 581 0.7 389 0.7 -192 66.9 - -
Depreciation and Amortization 2,065 2.5 1,742 3.1 -322 84.4 - -
Operating Income -164 -0.2 -10,469 -18.6 -10,305 - 3,031 -
1. Consolidated Financial Ordinary Income
Extraordinary Income
769
1,894
0.9
2.3
-9,642
418
-17.1
0.7
-10,412
-1,475 22.1
- 3,057
-
-
-
Highlights -Profit and Loss- Extraordinary Loss
Profit Before Taxes
372
2,290
0.5
2.8
4,014
-13,237
7.1
-23.5
3,641
-15,528
1076.2
-
-
-
-
-
Profit Attributable to Owners of Parent 1,053 1.3 -14,434 -25.7 -15,487 - 1,766 -
EBITDA ※ 2,482 3.0 -8,337 -14.8 -10,820 - - -
Net Sales: Sales of stores in prime locations were tough due to shortened business hours and refrain
from going out, though all our stores have reopened since this June.
Sales of e-commerce ongoingly increased 118.1% year-on-year.
Gross Profit ratio: Deterioration of discount rate (▲6pt), loss on valuation of inventory(▲2pt),
Increase in discounted products etc.(▲2.6pt)
SG&A Expenses: In addition to reduction of variable costs, we tried to reduce fixed costs.
Extraordinary loss: Impairment loss of JPY1.4billion, loss of JPY2.4billion due to the temporary
suspension of operations.
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Cumulative Q2ND 2020
Cumulative Q2ND 2021 Ending Feb.
Ending Feb.
Composition
Results Composition Results Composition Rate
Y/Y (%)
(Million yen) Rate (%) (Million yen) Rate (%)
Y/Y Change
2. Net Sales Department Stores
Commercial Facilities(*1)
10,841
41,968
13.2
51.3
5,107
22,768
47.1
54.3
9.1
40.5
-4.1pt
-10.8pt
Per Channel In-house EC 5,175 6.3 8,989 173.7 16.0 +9.7pt
3rd party 11,265 13.8 10,434 92.6 18.5 +4.7pt
E-Commerce 16,441 20.1 19,424 118.1 34.5 +14.4pt
Overseas 3,527 4.3 2,752 78.0 4.9 +0.6pt
Others(*2) 9,068 11.1 6,218 68.6 11.1 -
TOTAL 81,847 100.0 56,270 68.8 100.0 -
*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores.
*2 Apparel businesses such as wholesale, in-company sales and non-apparel businesses of the group companies.
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Unit:Million Yen
Cumulative Q2ND 2020 Ending Feb. Cumulative Q2ND 2021 Ending Feb. Y/Y
Composition Gross Profit Composition Gross Profit Gross Profit
Sales Sales Sales (%)
Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt)
1. nano・universe 12,130 14.8 45.1 8,004 14.2 36.1 66.0 -9.0
2. NATURAL BEAUTY BASIC 7,868 9.6 59.0 5,066 9.0 43.1 64.4 -15.9
3. PEARLY GATES 6,270 7.7 51.2 4,439 7.9 50.3 70.8 -0.9
4. MARGARET HOWELL 6,887 8.4 57.5 3,509 6.2 43.4 51.0 -14.1
5. AVIREX 3,764 4.6 61.4 2,359 4.2 55.4 62.7 -6.0
6. STUSSY 2,520 3.1 70.7 2,049 3.6 62.9 81.3 -7.8
3. Brands Overview
7. UNDEFEATED 2,305 2.8 44.6 1,887 3.4 40.6 81.9 -4.0
8. ROSE BUD 3,108 3.8 49.5 1,839 3.3 34.5 59.2 -15.0
9. HUF 2,022 2.5 51.4 1,778 3.2 45.6 87.9 -5.8
10. PROPORTION BODY DRESSING 1,763 2.2 53.2 1,453 2.6 51.6 82.4 -1.6
TOP10 48,641 59.4 53.3 32,388 57.6 44.5 66.6 -8.8
Other Brands 32,873 40.2 54.6 23,861 42.4 40.9 72.6 -13.7
Continuing Brands 81,514 99.6 53.8 56,249 100.0 42.9 69.0 -10.9
Closed Brands 333 0.4 13.7 21 0.0 69.7 6.3 +55.9
TOTAL 81,847 100.0 53.6 56,270 100.0 43.0 68.8 -10.6
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Ⅱ Medium-Term
business strategy
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Creating a fusion of digital and power of humanity, bringing
management and field closer, we accomplish the speedy business
operation suited to the the digital age.
We will build a digital-fashion company which creates originality by creativity and logic.
Lower of Accelerate the
Power up our
the break-even Speed in corporate
Business creation
point management
Change our mind,culture and work-style
1. The objection and
strategy of business 01. DX of management and operations
combination Digitalization of back-office
Visualization of management index and KPI management
02. New strategy of merchandising and marketing 03. Digitalization of stores and earnings recovery
Strategy of merchandising and purchasing plan Earnings recovery of existing stores/
Content strategy for promotion Strategy which has stores in prime locations.
Investigation for digitalization of stores
Core strategy for e-commerce with sales staff Strategy for closing stores
Brand strategy for New Normal Reciprocal customer transfer between stores and
e-commerce.
04. Transfer sales channel to e-commerce 05. Global strategy and development of human resources
Investigation for fascinating User Interface Global strategy
Unified commerce Bring up digital-native brands 7 7
Develop new customers without depending on stores Conglomerate D2C businesses/Strategic M&A
Based on the basic policy that consolidates our domestic subsidiaries into one,
Weʼre formulating our Medium-Term Management Plan in accordance with three
KPI as follows.
01 Creating new customer value by cutting-edge technology
Evolve our service by Unified
commerce EC/Digital ratio
Creation of
new brand
New service
values
Merchandising for developing
new customers
50%
values
New business and creation of
brands in the digital age.
2. Medium-Term 02 Sincerely and pro-environmentally providing products to customers
Reform programs Effort to
Highly
Business transformation to
product only the quantity needed
The full-price
sales ratio
Developed Sincere price and brands to our
Sustainable
development
forecast for customers at any time and place 80%
demand
03 Keep on progressing by investing in business and human resources
Improved productivity by DX Operating
Reinforcement of the earnings
Reform SCM margin of
Advanced base not affected by the
and
productivity
manufacturing business environment
Visualization of management
5%
SGA ratio of less than 50%
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Ⅲ Our plan for 2021
Ending February
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Unit:Million Yen
1st Half 2nd Half Full Year
Results Results Results Plan Results Plan
Composition Y/Y Composition Y/Y Composition Y/Y
2020 2021 2020 2021 2020 2021
Rait(%) (%) Rait(%) (%) Rait(%) (%)
Ending Feb. Ending Feb. Ending Feb. Ending Feb. Ending Feb. Ending Feb.
Net Sales 81,847 56,270 100.0 68.7 88,220 75,930 100.0 86.1 170,068 132,200 100.0 77.7
Operating Income -164 -10,469 -18.6 - 234 -7,330 -9.7 - 70 -17,800 -13.5 -
Ordinary Income 769 -9,642 -17.1 - 1,081 -7,058 -9.3 - 1,851 -16,700 -12.6 -
1. Plan for 2021 Profit Attributable
to Owners of Parent
1,053 -14,434 -25.7 - 1,127 14,484 19.1 1285.2 2,181 50 0.0 2.3
Ending February
Net Sales: Plan based on the guideline to restrain our purchasing to 70% in principle.
Operating income: Plan JPY1.7billion in costs relating to structural reforms.
Extraordinary income: Plan JPY1.8billion in gains from sales of fixed assets in Shibuya etc.
Extraordinary loss: Plan JPY1.7billion in costs relating to early retirement, impairment loss etc.
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Get rid of all negative factors regarding reduction
of fixed costs and disposal of underperforming
businesses by the end of this term.
Reduce Implementation of downsizing 300 employees ▲3billion yen※
employment
※Estimated cost reduction involving closing stores and
2.Implementation of cost
withdrawing from unprofitable businesses
measures for the
Close 210 ※ unprofitable stores ▲2billion yen
Current Term(1) Close
Domestic 178 stores, Overseas 32 stores FY 2021
stores
※Besides the above-mentioned stores,
we consider whether to reduce more stores.
Close 3 subsidiaries and 3 brands ▲4billion yen
Withdraw
from 1st half …”TSI ASIA LIMITED” “Natural Beauty””FACT”
2 nd half…”UNIT&GUEST””Laline Hawaii Corporation” “Herschel Supply”
unprofitable
businesses ※ Besides the above-mentioned stores,
we consider whether to reduce more stores.
Make office Make office size smaller
size smaller Start the project to consolidate 24 offices
into one 11
Careful Selection of investment for reinforcement
of the earnings base
Integration of Integrate e-commerce organization and functions in our
e-commerce domestic subsidiaries (About 180 people)
functions and
Integrate digital team in order to share their knowledge, sophisticate their
3.Implementation of human
resources operations and optimize investment on September 1st
measures for the
Start the D2C platform
Current Term(2) D2C
Acquired business of the “ETRÉ TOKYO”,
businesses
we will establish the D2C platform.
Development Start 5 Brands
of new “CADUNE” ”ELE STOLYOF” ”quitan”
businesses “PING” “FLOML”
Restart Digitalization of US Business
overseas Innovation of e-commerce and marketing business
businesses in HUF with the team of Tactics ,which acquired
recently. 12
Ⅳ Reference Data
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Cumulative Q2ND 2020 Cumulative Q2ND 2021
Ending Feb. Ending Feb.
All Stores︓106.9% All Stores︓ 66.6%
Existing Stores ︓99.7% Existing Stores︓82.0%
110.3 112.7 110.6
106.4 108.1 106.3 111.0
105.5 105.7
99.2
Domestic Monthly 103.3
99.2 100.9 99.4
94.3
101.9
101.2
91.5 93.0 90.8 91.7 90.8
82.8 84.3
Sales Information
95.8 92.6 91.9 93.5
83.4 88.8 80.1 81.2
66.6
65.4
43.3
33.7
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Q2ND 2020 Ending FY Ending Feb. Store Store Q2ND 2021 Ending
Feb. ※1 2020 Open Close※2 Feb.
# of Stores 1,011 998 +55 -70 983
Domestic
Change -10 -23 -15
Store Distribution Overseas
# of Stores 79 76 +6 -18 64
Change -64 -67 -12
# of Stores 1,090 1,074 +61 -88 1,047
Total
Change -74 -90 -27
*1 Number indicated on "Change" rows are comparison with the end of 2019 Ending February.
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Disclaimer
Descriptions about future within this document are based on the information
that the company obtains on the date of this report and certain assumptions
deemed to be reasonable. Actual earnings may differ materially from various
future factors.
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