Shimamura Co., Ltd. · TSE:8227
Shimamura — Q1 FY2/23 Earnings Presentation
18 slides from Shimamura's earnings presentation, Jun 27, 2022
Slide 1: Financial Results for 1Q of FY2/23
Financial Results for 1Q of FY2/23 June 27, 2022 1
Slide 2: Consolidated Results: Income Statement
１．Consolidated Results: Income Statement ▽ Net sales increased by 4.8% YoY, reaching a record-high for 1Q alone. ▽ SG&A to sales ratio was 25.0% (▲0.3pt YoY). Promoted more efficient use of advertising and other expenses. ▽ Operating income margin was 14.6 billion yen (9.8% rate), reaching a record-
Slide 3: Sales by Business
２．Sales by Business ▽ Domestic sales grew by 4.8% YoY due to the further enhancement of brand power, development of new influencer projects and character products, diversification of sales promotion methods, and regional response. ▽ Sales of Si meng le (Taiwan) declined due to the rapid spread of th
Slide 4: Consolidated Results: SG&A Expenses
３．Consolidated Results: SG&A Expenses ▽ Personnel expenses: Increased by 4.5% YoY on a 5.6% wage increase. It has been incorporated into the plan. ▽ Advertising expenses: Ratio to sales was 1.9%, controlled by the expansion and diversification of digital sales promotions. ▽ Equipment cost: Utilities
Slide 5: Consolidated Results: Balance Sheets
４．Consolidated Results: Balance Sheets ▽ Assets : We remain the policy of increasing the proportion of cash and deposits. It was the same level as the end of the previous fiscal year. Merchandise inventory up by 4.2% YoY, maintaining an appropriate level. ▽ Liabilities : Accrued income taxes and acc
Slide 6: Existing store sales, Number of customers, Spending per customer (YoY)
５．Existing store sales，Number of customers, Spending per customer (YoY) ▽ Growth in existing store sales : Further strengthen product appeal and sales power. ▽ Increase in the number of customers : Development of new products, diversification of sales promotion media, and response in urban areas. ▽
Slide 7: Gross profit, Price reduction, Inventory YoY
６．Gross profit, Price reduction, Inventory YoY ▽ Shimamura and Avail were able to curb price reduction and improved their gross profit margins by appropriately controlling seasonal inventories and use short-term production. ▽ Gross profit, price reduction, and inventory in the Birthday business were
Slide 8: Shimamura Business ①
７．Shimamura Business ① Strengthening product appeal ▽ Further enhancement of brands : Composition of in-house brands was 29.6%(PB+JB+FIBER) Developed new products and improved existing products. PB sales up by 3.5% YoY. ▽ Expansion of high-priced brand "CLOSSHI PREMIUM" : Sales were approx. 1.5x YoY
Slide 9: Shimamura Business ②
７．Shimamura Business ② Strengthening product appeal ▽ Further development of brands : JB ratio was 10.1%. Sales rose by 9.5% YoY. “SEASON REASON” and “HK WORKS LONDON” were strong the due to the surge in ‘going out’ demand. ▽ Developed a private brand-development system, and merchandises, sales depa
Slide 10: Shimamura Business ③
７．Shimamura Business ③ Strengthening sales power ▽ Evolve and diversify digital sales promotion : 18 web advertisement in total (last year : +1) Promoting the appeal of PB products with videos. Flexibly respond to changes in temperature. In addition to the Instagram account named "Shima-style“, we o
Slide 11: Shimamura Business ④
７．Shimamura Business ④ Strengthening sales power ▽ Strengthened regional response : Sales in Hokkaido and Okinawa exceeded all-store averages. Hokkaido : Response to sports day (long sleeve clothes,etc). Okinawa Prefecture : Early development of summer products from March. ▽ Strengthened response to
Slide 12: Avail Business
８．Avail Business Strengthening product appeal and sales power ▽ Strengthened trend proposal centered on JB products : JB ratio was 37.4% (no results in 1Q last year). Expanded the three JB brands and strengthened total coordination proposals in sales corners. ▽ Strengthened character products : Rati
Slide 13: Birthday Business
９．Birthday Business Strengthening product appeal and sales power ▽ Strengthened the product appeal of JB : Ratio of JB products was 25.7%. Sales up by 18.5% YoY. Developed new products and expanded product lineup. Zoo collaboration products and gift items became hot seller. ▽ Diversified planning :
Slide 14: Risk Factors and Responses
10．Risk Factors and Responses Rising raw material costs １）Although the impact on purchase costs was on individual products, the overall impact was minor. ２）Future responses（3Q and beyond） ① Price concept ・Maintain prices of standard products such as PB "CLOSSHI" as much as possible. ・Review the mix
Slide 15: Risk Factors and Responses: Cyber Security
10．Risk Factors and Responses About Cyber Security １）Overview of authorized external access. ① Background ・May 4 ... Unauthorized access from outside was detected. ・May 5 ... Cashless payment at the store was temporarily suspended. The next day, the service was resumed. Other services were resumed s
Slide 16: Consolidated Business Forecasts for FY2/23
11．Consolidated Business Forecasts for FY2/23 ▽ Net sales to up by 3.9% YoY and operating income to up by 5.3% YoY. ▽ Dividend per share is expected to be 250 yen for the full year (an increase of 10 yen). * There is no change from the announcement of financial results on April 4 (Million yen/%) FY2
Slide 17: Information Disclosure
12．Information Disclosure Financial Results Briefing Part II: Briefing Session on ESG ▽ Today, June 27 (Monday) 17:00 to 18:00 Teleconference format (pre-informed) Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): June 27 (Monday
Slide 18: Cautionary Statement Regarding Forward-Looking Statements, etc.
Cautionary Statement Regarding Forward-Looking Statements, etc. The forward-looking statements, including business forecasts, contained in this document are based on judgments made in accordance with information available at the time of this document's release and are subject to a number of uncertai