Slide 1: Financial Results for Q2 of FY2/24
Financial Results for Q2 of FY2/24 October 3, 2023 1
Slide 2: Table of Contents
Table of Contents １. Q2 Financial Summary P. 3 - 10 ２. Initiatives by Business P. 11 - 18 ３. Initiatives for ESG Issues P. 19 - 21 ４. Consolidated Business Forecasts for FY2/24 P. 22 - 24 2
Slide 3: Summary
Summary ▽ Consolidated sales for 1H were 105.1% YoY, achieving record-high 1H sales and profits. ①Sales in all businesses exceeded the previous fiscal year, and consolidated sales for the first half reached a record high. ②Gross profit and SG&A expenses were generally under control as planned, even
Slide 4: Consolidated Results: Income Statement
Consolidated Results: Income Statement ▽ Net sales: 316.8 billion yen (increased by 5.1% YoY). Record-high sales for the first half alone. ▽ SG&A expenses: 25.2%(increased by 0.1pt YoY). Personnel expenses were higher than the plan. Total SG&A expenses were generally in line with the plan. ▽ Operati
Slide 5: Sales by Business
Sales by Business ▽ Due to the evolution of brands, expansion of product lineups, diversification of sales promotion methods, and strengthening of regional and individual store support, Sales in all businesses exceeded the previous year's results, and domestic sales increased 5.0% YoY. ▽ Sales of Si
Slide 6: Consolidated Results: SG&A Expenses
Consolidated Results: SG&A Expenses ▽ Personnel expenses: Increased by 6.9% YoY due to large wage increases. This has a strong impact on hiring activity and reduces the job turnover. ▽ Advertising expenses: The ratio to sales was 1.7%(△0.1pt YoY), controlled by the diversification and sophistication
Slide 7: Consolidated Results: Balance Sheets
Consolidated Results: Balance Sheets ▽ Assets: Cash and deposits, accounts receivable, and valuable securities increased by 10.5%YoY. The merchandise inventories were lower than in the previous fiscal year. ▽ Liabilities: There was an increase mainly in income taxes payable and accrued expenses. Thi
Slide 8: Existing store sales, customers, spending per customer
Sales, Number of customers, Spending per customer (YoY) ▽ Growth in existing store sales: Existing store sales for 1H increased YoY in three major businesses. ▽ Positive trends in customer numbers: Shimamura‘s and Avail’s customer numbers increased in 1H compared to the previous year, although avera
Slide 9: Gross profit, Price reduction, Inventory YoY
Gross profit, Price reduction, Inventory YoY ▽ Policy for the current term: Secure appropriate price entry and appropriate price reductions, and increase inventory turnover to secure gross profit. ▽ In Q2, we took action in line with the policy in each business and secured solid gross profit while k
Slide 10: Shimamura Business: Trends in cross-ratio (Past 5 years)
Shimamura Business: Trends in cross-ratio(Past 5 years) ▽ Cross-ratio (gross profit margin x product turnover) has been improving year by year, reaching a high level of about 245% on an annualized basis. ▽ Steady improvement in profitability due to advanced merchandise management techniques (detaile
Slide 11: Shimamura Business ①
Shimamura Business ① Strengthening product appeal ▽ Further enhancement of PB: PB ratio was 21.0%、PB sales increased by 10.0% YoY in the first half. Summer products in general were strong. • High-priced PB "CLOSSHI PREMIUM": 1H sales increased by 37% YoY. Sales of "THE SUPER COOL" were very strong d
Slide 12: Shimamura Business ②
Shimamura Business ② Strengthening product appeal ▽ Further enhancement of JB: JB ratio was 8.9%, and JB sales increased by 7.4% YoY in the first half. Strengthened proposals for coordinating clothing for wear with accessories and shoes. The lineup of high-priced items is also strong. ▽ Influencer p
Slide 13: Shimamura Business ③
Shimamura Business ③ Strengthening sales power ▽ Successful 70th anniversary campaign: Significantly increased customer traffic. Special price promotions for limited edition products. ▽ Diversification of digital sales promotions: 24 web commercials were aired in 1H. Number of social media followers
Slide 14: Avail Business
Avail Business Strengthening product appeal and sales power ▽ Strengthening trend proposals with JB at the core: JB ratio was 41.9% and JB sales increased by 22.7% YoY in the first half. ▽ Expand character products: 1H sales increased by 25.7% YoY due to improved project accuracy and expansion of de
Slide 15: Birthday Business
Birthday Business Strengthening product appeal and sales power ▽ Expansion of JB: Sales of JB products for infants and low teens were strong. JB ratio was 26.6% and JB sales increased by 7.5% YoY in 1H. ▽ Responding to occasion demand: Sales of swimming-related products and Yukata/Jimbei were strong
Slide 16: Chambre and Divalo Business
Chambre and Divalo Business Strengthening product appeal and sales power ▽ Chambre Business: Sales of JB products were strong in apparel and fashion accessories. New character products and gift items were also strong. ▽ Divalo Business: Strengthen "Shoes & Fashion" coordination proposals and digital
Slide 17: Si meng le Business (Taiwan)
Si meng le Business（Taiwan） Strengthening product appeal and sales power ▽ Strengthening product appeal … Expansion of Taiwan original products. Branded products accounted for 55.5% of total sales, up 140.7% yoy. ▽ Strengthening sales power … Brushed up digital sales promotion. The number of SNS vie
Slide 18: EC Business
EC Business Scale expansion of EC business and improve convenience ▽ Sales in 1H were 3.1 billion yen (EC conversion ratio: 1.0%): Sales YoY were 194.9%, and the store pick-up ratio was 88.0%. ▽ Expansion of EC-limited products and made-to-order products: nursing care products, large-scale items, ch
Slide 19: Initiatives for ESG Issues ①
Initiatives for ESG Issues ① Results of 1H (Environment) ▽ Hangers: Complete recycling ratio was 56.4%. Improvement in the accuracy of hanger sorting in stores. ▽ Vinyl: Started a complete recycling program to recycle shopping bags collected from customers into new small delivery bags. ▽ Sustainable
Slide 20: Initiatives for ESG Issues ②
Initiatives for ESG Issues ② Results of 1H (Society) ▽ Percentage of female managers: 15.6%. The ratio of block managers (main manager level) in stores increased significantly to 19.6%. ▽ Ratio of employees with disabilities: 4.46%. The ratio increased outside of Shimamura business by strengthening
Slide 21: Initiatives for ESG Issues ③
Initiatives for ESG Issues ③ Initiatives for 2H ▽ Expansion of factory audits in the supply chain: In addition to human rights checks, environmental checks were expanded. ▽ Open of experimental environmentally friendly stores (3 stores): Targeted 30% reduction of CO₂ emissions (compared to existing
Slide 22: Consolidated Business Forecasts for FY2/24
Consolidated Business Forecasts for FY2/24 ▽ Net sales: 635.0 billion yen (+3.1% YoY). Operating income: 54.5 billion yen (+2.4% YoY) ▽ Annual dividends per share are expected to be 270 yen (up by 10 yen) ▽ We will respond appropriately to anticipated external risks and aim to achieve our sales and
Slide 23: FY2/24 Store Openings and Closing Plan
FY2/24 Store Openings and Closing Plan ▽ We revised annual number of stores to be opened by the group to 41. The number of stores to be closed remains at 26. The impact of the revision on business performance is negligible. This is because we are carefully selecting stores with an emphasis on profit
Slide 24: Risk Factors and Responses (2H)
Risk Factors and Responses (2H) ▽ Risk of rising procurement costs: Respond by raising the unit price per product and restructuring the product procurement method. ① Raise unit price per item: Continue to shift to new price ranges and expand high price ranges to secure appropriate purchase prices. ②
Slide 25: Information Disclosure
Information Disclosure Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): October 3 (Tuesday) ▽ Summary of Financial Results: October 3 (Tuesday) ▽ Financial Results (Summary of Question and Answer Session): October 4 (Wednesday)
Slide 26: 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