H2O Retailing Corporation · TSE:8242
H2O Retailing — Q1 FY2024 Earnings Presentation
15 slides from H2O Retailing's earnings presentation, Aug 2, 2023
Slide 1: 1Q of FY2024 Presentation Materials
1Q of FY2024 Presentation Materials Aug. 2, 2023 H2O RETAILING CORPORATION
Slide 2: Digest of Financial Results
Digest of Financial Results ■ 1Q (Apr.-Jun.) Results <Consolidated> • Continued strong performance in Department Store business, with net sales and operating profit growing from the previous year. • Operating profit increased in Supermarket business and Shopping Center business, and consolidated ope
Slide 3: Topics
Topics I . Consolidated Financial Results II . Forecast of FY2024 Copyright © H2O Retailing Corp. All Rights Reserved. 3
Slide 4: I. Consolidated Financial Results
I. Consolidated Financial Results 1 . Consolidated Financial Results 2 . Results by Segment 3 . Department Store Business 4 . Supermarket business 5 . Shopping Center business Copyright © H2O Retailing Corp. All Rights Reserved. 4
Slide 5: I-1. Consolidated Financial Results
I-1. Consolidated Financial Results ▶ In Department Store business, urban stores continued to perform well, to be driven by high-end items. Furthermore, sales increased due to the fashion including cosmetics being favorable, with the recovery from the impact of COVID-19. ▶ Operating profit recovered
Slide 6: I-2. Results by Segment
I-2. Results by Segment ▶ Department Store Domestic sales grew in all categories due to the expansion of consumer needs resulting from the downgrading of COVID-19 and strong sales of high-end items. Inbound sales exceeded pre-COVID-19 due to the impact of exchange rates and rapid increase in sales,
Slide 7: I-3. Department Store Business
I-3. Department Store Business ▶ Recovery in numbers of customers due the recovery from the impact of COVID-19, sales growth in all categories Sales of jewelry and watches and luxury brands were strong, including inbound demand. ▶ Increase in expenses, such as utility expenses and sales related expe
Slide 8: I-3. Department Store Business-Sales of each category
I-3. Department Store Business-Sales of each category ▶ Sales of all categories increased from the previous year, clothing recovered due to the recovery from the impact of COVID-19. ▶ Sales of accessories and general merchandise, including luxury items, continue to trend favorably ▶ Gross profit mar
Slide 9: I-3. Department Store Business-Existing Store Sales (vs pre-COVID-19)
I-3. Department Store Business-Existing Store Sales (vs pre-COVID-19 [1Q FY2019]) ▶ Domestic sales and inbound sales exceeded the result of 1Q FY2019. Existing store sales were 111% of the FY2019 level for the cumulative 1Q (Domestic sales: 111%, Inbound sales: 114%) ▶ Inbound sales recovered from M
Slide 10: I-3. Department Store Business-Inbound Sales Trends
I-3. Department Store Business-Inbound Sales Trends ▶ Inbound sales exceeded results of 1Q FY2019 due to higher sales of high-end items as in domestic sales. ▶ Sales rose sharply in Taiwan, South Korea and Hong Kong since Oct. 2022, and China is recovering steadily. Trends in inbound sales by countr
Slide 11: I-4. Supermarket Business
I-4. Supermarket Business ▶ Existing store sales exceeded the previous year due to higher average spend per customer and sales and profits increased. We assume the unit price will continue to exceed the previous year‘s level. Consumers will continue to increase defensive spending patterns by price h
Slide 12: I-5. Shopping Center Business
I-5. Shopping Center Business ▶ Occupancy rates at business hotels operated by Oi Development exceeded 90% in Apr.-Jun. Maintained high occupancy rates due to the success of profit-conscious pricing measures (dynamic pricing, price competition with competitors) under recovering demand for business t
Slide 13: II. Forecast of FY2024
II. Forecast of FY2024 ▶ Upward revision to forecast based on strong 1Q performance at Department Store business ▶ Considering certain risks of a slowdown in Department Store sales, which are positively impacted by the exchange rate and booming stock market 1H FY2024 Difference with Plan Revision Di
Slide 14: II. Forecast of FY2024
II. Forecast of FY2024 ▶ Gross sales: No change because sales of 1Q as planned ▶ Operating profit: Revised 1H forecasts for Department Store Business, which exceeded plan in 1Q Gross sales Operating profit Difference Difference Difference Revision Plan Revision with the May YoY with the May YoY with
Slide 15: The information contained in this material reflects judgments made by H2O Retailing at the
The information contained in this material reflects judgments made by H2O Retailing at the time of preparing this material, and no guarantees are provided concerning the accuracy of the information. The information is also subject to change without prior notice. H2O and the information providers ass