Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q1 FY2025 Earnings Presentation
30 slides from Tsi's earnings presentation, Jul 16, 2024
Slide 1: The First Quarter of Fiscal Year 2025 Financial Briefing
The First Quarter of Fiscal Year 2025 Financial Briefing
Slide 2: Agenda
AGENDA 1 FY2025 1Q Results Overview 2 Existing Channels Overview 3 Brands Overview 4 Structural Reforms Status 5 1Q Topics 6 Appendix 1 copyright © 2024 TSI HOLDINGS CO., LTD. All right reserved.
Slide 3: FY2025 1Q Results Overview
Next Agenda FY2025 10 Results Overview
Slide 4: Executive Summary
FY2025 1Q: Executive Summary Although sales fell slightly short of the plan, effective control of SG&A expenses kept operating profit nearly in line with the plan (planned loss for the first half: 0.9 billion yen) . Consolidated Sales Operating Profit 1Q Net Income ¥39.29 billion ¥1.01 billion ¥0.54
Slide 5: FY2025 1Q: Performance
> Gross Profit FY2025 1Q: Performance (Sales amount in million JPY) • Exchange rate deterioration and soaring 250 58.6% 57.3% 60.0% energy resource prices leading to 56.0% 56.1% increased raw material costs Gross Profit 200 55.0% • Increased valuation losses due to the rise 150 in remaining inventor
Slide 6: FY2025 1Q: Items Affecting Net Profit
FY2025 1Q: Items Affecting Net Profit Ordinary income, including non-operating income and expenses such as decreased dividends and rental income, and equity method losses from U.S. affiliated companies, amounted to 1.1 billion yen. Special income and expenses, including 0.3 billion yen from the sale
Slide 7: Balance Sheet
Balance Sheet > Cash and Deposits 【Year-on-year Comparison】 (Sales amount in million JPY) Due to increased inventory and stock buybacks, Cumulative Q1ST 2024 cash and deposits decreased by 4.07 billion yen. FY Ended Feb. 2024 Cumulative Q1ST 2025 Ending Feb. Ended Feb. Results Composition Rate (%) R
Slide 8: Existing Channels Overview
Existing Channels Overview 7
Slide 9: Existing Channels: Domestic
FY2025 1Q: Existing Channels Benefiting from the recovery in consumer behavior with increased outings and rising international visitor demand, domestic physical store sales (department stores + non-department stores) showed a solid performance, reaching 103.4% YoY, an increase of 780 million yen. In
Slide 10: FY2025 1Q: Existing Channels
FY2025 1Q: Existing Channels For physical store sales, the impact of withdrawing from some department stores was offset by sales from non- department stores, which were 105.6% of the previous year, an increase of 0.98 billion yen. Physical Stores International Sales: 103.4% YoY (non-department store
Slide 11: Existing Channels (E-commerce)
FY2025 1Q: Existing Channels (E-commerce) Due to the termination of the agency contract with "UNDEFEATED" from the previous year and a decline in the sneaker market, which affected the availability of high-profile streetwear products, there was a slowdown in EC sales. Additionally, the sales decreas
Slide 12: Brands Overview
Next Agenda Brands Overview
Slide 13: FY2025 1Q: Core Brands
FY2025 1Q: Core Brands Sales from loyal customers are showing signs of recovery, In spring/summer 2024, the brand expanded our however a decrease in new customer acquisitions has collaboration with MIZUNO, which began in fall/winter contributed to underperformance year-on-year. 2017, and launched sa
Slide 14: FY2025 1Q: Growing Brands
FY2025 1Q: Growing Brands Brands that have achieved remarkable growth from the previous year outside of the core brands. Growing Brands 117.9% YoY While all of the brand's physical stores are performing well, the Jingumae store continues to be No. 1 in company-wide physical store sales since the pre
Slide 15: FY2025 1Q: Growing Brands
FY2025 1Q: Growing Brands Since joining TSI Holdings group in 2019, the brand has continued to grow steadily, with sales increasing sevenfold over six years. Boosted by increased demand from international visitors and rising overseas wholesale, sales have remained strong this quarter. The largest di
Slide 16: FY2025 1Q: Growing Brands
FY2025 1Q: Growing brands Sales: 122.1% YoY（Physical & Wholesale 132.4％、EC 110.8%） Sales increased by 146.6% YoY, maintaining strong performance. Pop-up stores in Percentage of EC sales vs Total retail sales: 43.5% Takashimaya Tamagawa and Hankyu Umeda and brand collaborations were actively Due to c
Slide 17: Structural Reforms Status
Structural Reforms Status 16
Slide 18: Structural Reforms Status
Structural Reforms Status Expected Purpose Course of Action Impact Status（Progressed as Planned） FY2027 (One-Year) Consolidate orders/improve purchasing leverage Not only consolidating the ordering processes but also reevaluating Purchase Cost production sites, local settlements, and reducing indire
Slide 19: FY2025 1Q Topics
Next Agenda FY2025 1Q TOPICS
Slide 20: Collect: Enrich the Spirit through Fashion Entertainment
Enrich the Spirit through Fashion Entertainment By offering products that embody the brand's beliefs, customers are encouraged to wear them with affection, fostering a mindset of valuing and taking care of their belongings. MARGARET HOWELL has introduced the Schott releases a carefully crafted schoo
Slide 21: Customers, Communities, and Ourselves
Customers, Communities, and Ourselves Together Share Sustainable Happiness We develop business activities with stakeholders that contribute to the health and happiness of both mind and body. TSI supports Inventor Ory Yoshifuji's wearable robotic "Urth Caffé" provided organic coffee and cookies to ar
Slide 22: Investment for Future: Enhancing Purchasing Experience
Investment for Future: Enhancing Purchasing Experience Implementing Digital Initiatives to Further Enhance Customer Experience Introducing “SugeKae,” an AI Image Generation Tool for Fashion E-commerce Before After Delivering tailored information to meet customer needs, enhancing efficiency in advert
Slide 23: Creator of Fashion Entertainment
We create empathy and social value across the world through the power of fashion entertainment. Creator of Fashion Entertainment copyright © 2024 TSI HOLDINGS CO., LTD. All right reserved. 22
Slide 24: Appendix
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Slide 25: Financial Highlights for the 1Q FY2025
Financial Highlights for the 1Q FY2025 (Sales amount in million JPY) Overview Cumulative Q1ST 2024 Cumulative Q1ST 2025 Ending Feb. （Revenue Recognition Standards） Ended Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 39,372 100.0 39,295 100.0 -77 99.8 Gro
Slide 26: 1Q Financial Highlights: Net Sales Per Channel
FY2025: 1Q Financial Highlights (Sales amount in million JPY) Net Sales Per Channel Cumulative Q1ST 2024 Cumulative Q1ST 2025 Ending Feb. （Revenue recognition standards） Ended Feb. Results Composition Results Composition Comp os it ion Rat e Y/Y (%) (Million yen) Rate (%) (Million yen) Rate (%) Y/Y
Slide 27: Financial Highlights: Brands Overview
FY2025 1Q: Financial Highlights (Sales amount in million JPY) Brands Overview Cumulative Q1ST 2024 Ended Feb. Cumulative Q1ST 2025 Ending Feb. YoY （Revenue recognition standards） Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%
Slide 28: Domestic Monthly Sales Information
FY2025 1Q: Financial Highlights Domestic Monthly Sales Information All Stores Existing Stores 145.0 Q1ST 2024 Ending Feb. Q1ST 2025 Ending Feb. All Stores：102.9％ All Stores：101.1％ Existing Stores：107.3％ Existing Stores：101.8％ 130.0 111.2 115.0 106.3 104.6 104.4 105.5 107.1 105.2 105.9 104.4 106.5 10
Slide 29: The Number of Stores
FY2025 1Q: Financial Highlights The Number of Stores C umulat ive Q1ST FY En d ed Store Store C umulat ive Q1ST Y/Y Q1/Q4 2024 E nded F eb. Feb . 2024 Open Close 2024 E nding F eb. Change Change Do me stic 756 731 +22 -15 738 -18 7 Appa re l Ove rse a s 30 30 +2 -1 31 1 1 Total 786 761 +24 -16 769 -
Slide 30: Forward-looking statements notice
This document comprises of forward-looking statements, including forecasts, outlooks, targets, and plans pertaining to the Company, its subsidiaries, and affiliates. The statements are based on the information available to the Company as of the date of this document and certain reasonable assumption