Shimamura Co., Ltd. · TSE:8227
Shimamura — Q2 FY2/25 Earnings Presentation
23 slides from Shimamura's earnings presentation, September 2024
Slide 1: Financial Results Briefing Q2 FY2/25
I am Tsujiguchi, the Head of the Planning Section. Thank you very much for taking time out of your busy schedule to attend today’s financial results briefing. 1
Slide 2: Contents
Contents 1. FY2/25 Q2 Financial Summary P. 3 - 9 2. Initiatives by Business P. 10 - 17 3. Store Openings in FY2/25 P18 4. Initiatives for ESG Issues P. 19 - 20 5. Consolidated Business Forecasts for FY2/25 P. 21 2 Please see today’s description. First, I will give an overview of the financial result
Slide 3: Financial Summary
First, I will explain a summary of the financial results. As a result of promoting the strengthening of product appeal and sales power in each of our domestic and overseas businesses, we were able to achieve record highs in sales and each of our profit figures for H1 of the fiscal year ending Februa
Slide 4: Consolidated Financial Results for Q2
Next, I would like to explain the consolidated financial results for Q2 of the fiscal year ending February 2025. The actual results for each figure are shown here. First, in terms of external factors, consumer spending turned positive in July for the first time in three months, but the situation of
Slide 5: Sales Breakdown by Business
This is a breakdown of the sales by business. Sales in all domestic businesses increased YoY due to an expanded lineup of self-developed private brands (PB) and brands developed jointly with suppliers (JB), as well as diversification of sales promotion methods. The Si Meng Le business in Taiwan also
Slide 6: Consolidated SG&A Expenses Breakdown
Next, we will discuss the breakdown of consolidated SG&A expenses. Personnel expenses increased 7.9% over the previous year due to the April wage increase. Stores that hired more part-time employees as a result of wage hikes experienced an improvement in work delays, resulting in higher sales. Adver
Slide 7: Consolidated Balance Sheet Breakdown
Next, I will explain the breakdown of the consolidated balance sheet. Total assets increased 5.6% YoY. The main factor was a 71.1% increase in marketable securities compared to the end of the same period last year. Total liabilities decreased by 3.5% YoY. The main reason was an 11.0% decrease in acc
Slide 8: Existing Store Sales, Customer Counts and Average Spend
Next is an explanation of the Q2 results for existing store sales, customer counts for all stores and average spending per customer. Existing store sales and customer counts were up from the previous year in all three businesses, while average spend per customer was almost on par with the previous y
Slide 9: Shimamura Business: Gross Profit, Price Reduction, Inventory
Next, I will explain the results of the SHIMAMURA business in terms of gross profit, price reduction, and inventory. Gross profit increased 4.2% over the previous year, up 0.1 percentage points in percentage terms. This was due to the expansion of high-priced products and the use of Import Departmen
Slide 10: Initiatives by Business: Shimamura Product Appeal
This is President Suzuki. I will now describe future initiatives for each of our businesses. In the Shimamura business, efforts were made to evolve brand strength as a means of strengthening product appeal. In PBs, we expanded the lineup of CLOSSHI PREMIUM, a high-priced private brand. Products with
Slide 11: Shimamura Business: JBs
This section describes JBs in the Shimamura business. In JBs, sales increased by 3.5% YoY, and JBs as a percentage of sales was 8.2%. For SEASON REASON, we expanded the development of high-priced products made of natural materials such as cotton and linen. In addition, lace and sheer fabrics were ad
Slide 12: Strengthening Sales Power of Shimamura Business
This section describes the strengthening of sales power of the Shimamura business. Through flyers, the launches of the Zenryoku Festival and the Inner Fair were very effective in attracting customers. At the Zenryoku Festival, selected items, including the FIBER DRY series, were sold at special pric
Slide 13: Avail Business
This next section describes the Avail business. In the area of product appeal, we worked to strengthen our JBs’ ability to propose trends and increase its recognition. In terms of trend products, sports-style items known as blokette core, vintage-style pullovers, and denim pants were hot sellers. JB
Slide 14: Birthday Business
Next, we will discuss the Birthday business. To strengthen our product appeal, we worked to expand our original products. For JBs, we started to roll out MY LITTLE WONDER and strengthened casual styles, which have been lacking in the product lineup. In the fall and early winter items, we launched co
Slide 15: Chambre and Divalo Businesses
Next, I will explain the Chambre business. To strengthen product appeal, we have begun to roll out the JB Clasiiki. Based on classics, we offer mode natural dressing with attention to detail. We aim to differentiate ourselves from existing JBs and attract new customers. In addition, sales of cosmeti
Slide 16: Si Meng Le Business in Taiwan
Next is a description of Si Meng Le business in Taiwan. In addition to PBs and JBs, which are Japanese-planned products, the Si Meng Le business, which operates in Taiwan, expanded its original PB lineup. As a result, the combined ratio of PBs and JBs planned in Japan and Taiwan was 64.7%, and their
Slide 17: E-commerce Business
Next, I will explain the e-commerce business. In the e-commerce business, influencer-project products and character products, which go well with online stores, performed well. In addition, sales were maximized by producing to-order products that were sold out in stores through the online store. For
Slide 18: Store Openings Results
Next, I will discuss the results of store openings. In H1, we opened 15 stores in Japan. In urban areas, the Shimamura Shimotakaido store opened in Suginami City, Tokyo. With a population of 570,000, Suginami City is the sixth most populous of Tokyo's 23 wards. Nearby are Shimamura Miyamae store and
Slide 19: Initiatives for ESG Issues
Next, I will discuss our approach to ESG issues. We have set new KPIs for ESG issues in our Medium-Term Management Plan 2027 and are continuing to work on them. 19
Slide 20: New ESG Initiatives: Apparel Collection and Shima Sapo
In this context, we would like to introduce two new initiatives that we are undertaking this fiscal year. The first is the collection of apparel. This is a system whereby used apparel is collected from our stores, recycled into fiber through our suppliers, and then reused as raw materials for appare
Slide 21: Consolidated Business Forecasts for FY2/25
The numerical forecast of consolidated financial results is as shown. There is no change in our plans for the fiscal year ending February 2025, which call for net sales of JPY659.6 billion, up 3.9% from the previous year, operating income of JPY56.3 billion, up 1.9% from the previous year, and an op
Slide 22: Information Disclosure
Finally, this is our information disclosure. The schedule for disclosing financial results on the corporate website is as shown. Furthermore, in August of this year, we released our first Integrated Report. This report introduces our history of building a good company, our initiatives, medium- and l
Slide 23: Closing
This concludes the explanation of SHIMAMURA’s business results for Q2 of the fiscal year ending February 2025 as well as its initiatives in each business segment and consolidated earnings forecasts. Thank you for your attention. 23