Slide 1: Introduction to Q1 results briefing
I am Tsujiguchi, Planning Section General Manager. Thank you very much for taking time out of your busy schedule to attend today's financial results briefing. I will begin by explaining the results for Q1 of the fiscal year ending February 2025. President Suzuki will then present the progress of the
Slide 2: Consolidated results for Q1
First, I will explain the consolidated results for Q1 ended February 2024. The respective numerical results are as shown. First, in terms of external factors, consumer spending was negative for 13 consecutive months through March, and although it turned positive in April, the economy is still strong
Slide 3: Sales by business
Sales by business are as shown. Efforts in the Shimamura, Avail, Birthday, and EC businesses are described on page eight and beyond. I will explain the results of the Chambre, Divalo, and Taiwan Si meng le businesses in this section. In the Chambre business, sales of cosmetics increased significantl
Slide 4: Breakdown of consolidated SG&A expenses
This section provides a breakdown of consolidated SG&A expenses. Personnel expenses increased 8% from the previous year due to wage increases of 5.3% for full-time employees and 4.1% for regular employees (part-timers) in April. This wage increase has reduced the number of understaffed stores, and s
Slide 5: Consolidated balance sheet breakdown
The following is a breakdown of the consolidated balance sheet. Total assets increased 6.9% from the end of the same period last year. The main factor was a 49.2% increase in investment securities compared to the end of the same period last year. Total liabilities increased 5.4% from the end of the
Slide 6: Existing store sales, customers and spending per customer
Next, I will explain the Q1 results for existing store sales, the number of customers, and spending per customer across all stores. Existing store sales and the number of customers were up from the previous year in all three businesses, while spending per customer was almost unchanged from the previ
Slide 7: Shimamura business gross profit, price reductions, inventory
Next, I will explain the results of the Shimamura business with respect to gross profit, price reductions, and inventory. Gross profit increased 3.7% from the previous year, a decrease of 0.3 percentage points in percentage terms. This was due to price reductions on winter inventory and backlogged i
Slide 8: Progress on key challenges: Shimamura business product appeal
I am Suzuki, the President. I will continue by explaining the results of our efforts on the key challenges. In the Shimamura business, we worked on the evolution of PB and JB as part of efforts to strengthen product appeal. In PB, we developed products to match changes in temperature. For Cotton fro
Slide 9: Strengthening sales power in the Shimamura business
Next, I will explain how we are strengthening the sales power of the Shimamura business. In advertising, we worked to raise awareness of PB and JB, and conducted limited collaboration projects with celebrities, influencers, and characters. The collaboration project between the PB CLOSSHI series and
Slide 10: Avail business
Next, I will explain the Avail business. In strengthening product appeal, we worked to enhance our ability to propose trends and raise awareness of our products, with JB as the core, and to develop new categories. For JB CHIP CLIP, we strengthened the launch of trendy items through collaboration pro
Slide 11: Birthday business
Next, I will explain the Birthday business. In strengthening product appeal, we expanded influencer projects and original products. As a new influencer project, we launched CHERIER, a new brand by three popular influencers. The relevant products achieved high digestibility due to the holding of an e
Slide 12: EC business
Next, I will explain the EC business. Sales for Q1 totaled JPY2.8 billion, approximately double the previous year's level. Sales grew significantly due to an expansion of products handled, an increase in made-to-order sales through the resale of hot-selling items, and the expansion of EC supplier de
Slide 13: Results of store renovations
Next, I will explain the results of the renovations. In Q1, six stores were renovated. The image on the slide shows the Shimamura Shimotsuruma store in Yamato City, Kanagawa Prefecture, which underwent renovations. We improved the shopping environment for customers by repainting exterior walls, chan
Slide 14: Earnings forecast
Each numerical forecast 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 operating margin of 8.5%. In the cu
Slide 15: Disclosure information
Finally, we will inform you of the disclosure information. The schedule for disclosing financial results on the corporate website is as shown here. We also plan to release our first integrated report in late August of this year. Our corporate website also discloses various materials other than finan
Slide 16: Closing remarks
This concludes the explanation of SHIMAMURA's business results for Q1 of the fiscal year ending February 2025, as well as the progress of key challenges and the business forecast. Thank you for your attention. 16