Shimamura Co., Ltd. · TSE:8227
Shimamura — Q2 FY2/23 Earnings Presentation
27 slides from Shimamura's earnings presentation, Oct 4, 2022
Slide 1: Financial Results for 2Q of FY2/23
Financial Results for 2Q of FY2/23 October 4, 2022 1
Slide 2: Consolidated Results: Income Statement
１．Consolidated Results: Income Statement ▽ Net sales increased by 5.9% YoY. Record-high sales for the first half alone. ▽ SG&A expenses were 25.1% (▲0.5pt YoY), Cost containment through more efficient advertising and other expenses ▽ Operating income was 28.9 billion yen (9.6% rate). Record-high inc
Slide 3: Sales by Business
２．Sales by Business ▽ Domestic sales increased by 5.6% YoY due to the further enhancement of brands, development of new influencer collaboration and character products, diversification of sales promotion methods, and regional response. ▽ Si meng le (Taiwan) struggled with the expansion of the novel
Slide 4: Consolidated Results: SG&A Expenses
３．Consolidated Results: SG&A Expenses ▽ Personnel expenses: Increased by 4.7% YoY on a 5.6% wage increase. It has been incorporated into the plan. ▽ Advertising expenses: Ratio to sales was 1.8%, 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: Cash and deposits, accounts receivable, and valuable securities increased by 13.4% YoY. Merchandise inventories increased by 9.3% YoY. Curbing unreasonable price reductions for summer products. ▽ Liabilities: Mainly accounts payable and accrued consum
Slide 6: Existing stores sales, Number of customers, Spending per customer
５．Existing stores sales,Number of customers,Spending per customer (YoY) ▽ Growth in existing store sales: Strengthen product and sales capabilities. Continue individual response to each region and store. ▽ Increase in number of customers: Develop influencer collaboration and character products. Stre
Slide 7: Gross profit, Price reduction, Inventory YoY
６．Gross profit, Price reduction, Inventory YoY ▽ In all businesses, gross profit margins were better than the previous year due to strong sales of summer products and the use of short-term production to curb price reductions. ▽ The reactionary rise in inventory levels of the Birthday business due to
Slide 8: Shimamura Business ①
７．Shimamura Business ① Strengthening product appeal ▽ Further enhancement of brands: Composition of in-house brands for the first half was 29.1% (PB+JB+FIBER) PB sales increased by 6.9% YoY. Development of new products and rebranding of existing products. ▽ Expansion of high-priced brand “CLOSSHI PR
Slide 9: Shimamura Business ②
７．Shimamura Business ② Strengthening product appeal ▽ Improvement of JB's planning capability: JB ratio was 8.8% in the first half. Sales increased by 12.5% YoY. Enhanced product planning. Reflected customer feedback in product development for "LOGOS DAYS". ▽ Expand influencer collaboration. Product
Slide 10: Shimamura Business ③
７．Shimamura Business ③ Strengthening sales power ▽ Diversification and use of digital sales promotions: 21 web commercials in the first half (up from 4 last year). Promote PB products and key events through videos. Promote the attractiveness of products and events. ▽ New digital sales promotion "LIN
Slide 11: Shimamura Business ④
７．Shimamura Business ④ Strengthening sales power ▽ Improvement of planning capability: Increase the number of customers by clarifying the themes of flyers such as promoting various fairs, etc. ▽ Strengthening individual response and regional response: Expand special flyers and products at 250 urban
Slide 12: Avail Business ①
８．Avail Business ① Strengthening product appeal ▽ Strengthening of trend proposals, centered on JB: JB ratio for the first half was 36.5%. Gilets + T-shirts and colored pants are in trend. Launched a brand for low-teen customers. ▽ Strengthening of character planning: Ratio of character for the firs
Slide 13: Avail Business ②
８．Avail Business ② Strengthening sales power ▽ Remodeling of the layout of all stores is completed. Strengthen the ability to make coordinated proposals . ・New fixtures for accessories and outerwear displays were introduced. ・The sales area around the cash registers and the event sales corner were a
Slide 14: Birthday Business ①
９．Birthday Business ① Strengthening product appeal ▽ Expansion of JB: JB ratio was 25.0% in the first half. Sales increased by 45.4% YoY. “futafuta”: Collaboration project with a zoo for 10th anniversary / "Cottoli": Strengthening gift business “rabyraby“: School size compatible / "DAILY LINE“: basi
Slide 15: Birthday Business ②
９．Birthday Business ② Strengthening sales power ▽ Diversification of digital sales promotion: Product development with influencers and sales promotion via social medias. Our Instagram account has 630,000 followers. Started Tik Tok as well. ▽ Strengthen approach to prenatal and postpartum customers:
Slide 16: Chambre and Divalo Business
10．Chambre and Divalo Business Strengthening product and sales power ▽ Chambre Business: JB strengthened coordination proposals. Sales increased by 14.1% YoY. Gift wrapping increased by 4.9% YoY with strengthening wrapping services. “Gift Marche" was also well received. ▽ Divalo Business: Strengthen
Slide 17: EC Business
11．EC Business Expand online sales business and improve convenience ▽ Sales in the first half was 1.6 billion yen, approx. 1.5 times YoY. Almost in line with forecast. Q1: Delayed delivery due to the Shanghai lockdown, Q2: Strong sales of EC-limited products. ▽ Number of members: 1.44 million member
Slide 18: Promotion of DX ① Progress in 1H
12．Promotion of DX ① Progress in 1H Progress of DX to improve sales and operational efficiency ▽ Started data analysis (Market Research Dept.): Expanded sales of characters through social media analysis. ▽ Utilization of tablet terminals: (1) “Shima Navi”: Sales floor improvement plans sent out by s
Slide 19: Promotion of DX ② 2H Plan
12．Promotion of DX ② 2H Plan "Customer Management System" service to be launched in the 2H ▽ Issue digital membership cards at physical stores and centrally manage them with EC members. ▽ Promote service level improvement and data utilization by grasping customer information and purchase histories.
Slide 20: Initiatives for ESG Issues ①
13．Initiatives for ESG Issues ① Results of 1H (Environment) ▽ Hangers ... Complete recycling ratio was 52%. Cultivate new recycling sites. ▽ Vinyl: Informed suppliers of operation rules. Research new recycling methods. ▽ Ratio of sustainable products was 23%. Informed suppliers of new standards and
Slide 21: Initiatives for ESG Issues ②
13．Initiatives for ESG Issues ② Results of 1H (Society) ▽ Ratio of employees with disabilities: 3.8%. ▽ Percentage of female managers: 15.1% “Promotion of acquisition of life consultation staff for “Expansion of regional manager candidate briefings” persons with disabilities” “Expansion and dissemin
Slide 22: Initiatives for ESG Issues ③
13．Initiatives for ESG Issues ③ Initiatives for 2H *CoC: Code of Contact ▽ Establish a check system at production sites in line with "Supplier CoC". Human rights: upstream of the supply chain / Environment: concretization of checking methods, TCFD compliance. ▽ Establish "Clothing Infrastructure Pro
Slide 23: Risk Factors and Responses
14．Risk Factors and Responses Response to rising purchasing costs １）Results for 1H ①The markup rate was slightly lower than last year, but gross profit was secured by restrained price reduction. ②High-priced products such as PB"CLOSSHI PREMIUM are selling well. ③Experimental introduction of a new pr
Slide 24: Consolidated Business Forecasts for FY2/23
15．Consolidated Business Forecasts for FY2/23 ▽ Sales are expected to increase by 3.9% YoY, operating income are expected to increase by 5.3% YoY . ▽ Annual dividends per share are expected to be 250 yen (up by 10 yen). * There is no change from the announcement of financial results on April 4 (Mill
Slide 25: FY2/23 Store Opening/Closing Plan
16．FY2/23 Store Opening/Closing Plan ▽ Against the initial plan, the Group opened ▲12 stores and closed ▲2 stores. ▽ Due to a decrease in unprofitable stores, the number of stores closed was 14 stores compared to 16 stores in Initial plan. ▽ Maintain100 store openings during the medium-term manageme
Slide 26: Information Disclosure
17．Information Disclosure Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): October 4 (Tuesday) ▽ Summary of Financial Results: October 4 (Tuesday) ▽ Financial Results (Summary of Question and Answer Session): October 5 (Wednesda
Slide 27: 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