Slide 1: Financial Results for Q2 of FY2/25
Financial Results for Q2 of FY2/25 October 1, 2024 1
Slide 2: Contents
Contents 1. FY2/25 Q2 Financial Summary P. 3 - 9 2. Initiatives by Business P. 10 - 17 3. Store Openings in FY2/25 P18 4. Initiatives for ESG Issues P. 19 - 20 5. Consolidated Business Forecasts for FY2/25 P. 21 2
Slide 3: FY2/25 H1 Summary
FY2/25 H1 Summary ▽ Sales of all domestic and overseas businesses surpassed the previous year's results, and both net sales and profits reached record highs. ▽ Net increase of 9 stores in H1. In H2, we plan to open 28 new stores, close 13 stores, resulting in net increase of 15 stores. FY2/25 H1 Con
Slide 4: Consolidated Results: Income Statement
Consolidated Results: Income Statement ▽ Net sales increased by 4.3% YoY. Record-high sales for H1. ▽ SG&A-to-sales ratio was 25.2% (+0.0ppt. YoY). Personnel and utilities expenses rose, but this was generally in line with the plan. ▽ Operating income amounted to 31.4 billion yen (rate: 9.5%). Recor
Slide 5: Sales by Business
Sales by Business ▽ Sales in all domestic businesses rose 4.3% YoY due to further development of private brand (PB) and joint brand (JB) products, improved customer drawing power through priority events and fairs, and strengthened response to regional and individual stores. ▽ Si meng le (Taiwan) saw
Slide 6: Consolidated Results: SG&A Expenses
Consolidated Results: SG&A Expenses ▽ Personnel expenses: Up 7.9% YoY due to wage increases. Sales rose at stores where personnel shortages had been resolved, mainly in urban areas. ▽ Advertising expenses: Reviewed circulation of flyers and switched to digital sales promotions. As a result, the rati
Slide 7: Consolidated Results: Balance Sheets
Consolidated Results: Balance Sheets ▽ Assets: Cash and deposits, accounts receivable, and marketable securities increased 5.5% YoY. ▽ Liabilities: Accounts payable decrease 11.0% YoY. (Million yen/%) Composition Composition End-Aug 2024 ratio YoY End-Aug 2023 ratio Current assets 357,606 64.8 103.9
Slide 8: Same-store Sales, Number of customers, Spending per customer YoY
Same-store Sales, Number of customers, Spending per customer YoY ▽ Growth in same-store sales: Continued to strengthen product appeal and sales power, worked to meet regional and individual store needs. ▽ Increase in customer numbers: As we stepped up efforts to launch priority events, various fairs
Slide 9: Gross profit, Price reduction, Inventory YoY
Gross profit, Price reduction, Inventory YoY ▽ Gross profit rose from the previous year due to the revision of the schedule for the development of summer goods in preparation for the remaining hot weather in each business. ▽ The inventory was improved by controlling the discount of summer goods and
Slide 10: Shimamura Business ①
Shimamura Business ① Strengthening product appeal and sales power ▽ Further enhancement of brand power: PB ratio was 23.4%, up 15.5% YoY. ・High-priced PB "CLOSSHI PREMIUM": H1 sales up 19.6% YoY. The performance was strong aided by the temperature. ・ Expansion of PB x Influencer projects: Strong sal
Slide 11: Shimamura Business ②
Shimamura Business ② Strengthening product appeal and sales power ▽ Strengthen product development in JB: JB sales ratio was 8.2%, up 3.5% YoY. ・"SEASON REASON": High-priced products using natural materials such as cotton and hemp continued to perform well. ・"LOGOS DAYS": The character collaboration
Slide 12: Shimamura Business ③
Shimamura Business ③ Strengthening product appeal and sales power ▽ Focused on priority events and fairs: Sold carefully selected items at special prices for priority events, attracting customers. Thematic presentations were strengthened at fairs. Sales grew through linkage with online stores. ▽ Ope
Slide 13: Avail Business
Avail Business Strengthening product appeal and sales power ▽ JB sales up 12.7% YoY, and JB ratio was 44.1%. Strengthening initiatives through collaborative planning with JB x Influencer and model. ▽ Expanded product lineups through line robbing. Expanded character merchandise boosts in-store and e-
Slide 14: Birthday Business
Birthday Business Strengthening product appeal and sales power ▽ JB sales up 4.4% YoY and JB ratio was 24.5%. ▽ Strengthened product appeal: Expanded original products and created sales that are less susceptible to temperature through collaboration projects. ▽ Strengthened sales power: Flyer sales p
Slide 15: Chambre and Divalo Business
Chambre and Divalo Business Strengthening product appeal and sales power ▽ Chambre Business: Sales up 1.4% YoY. Launched new JB. Cosmetics-related sales grew. ▽ Divalo Business: Sales up 9.3% YoY. Promoted line robbing. Expanded in-store and SNS sales promotions to strengthen sales of total coordina
Slide 16: Si meng le Business (Taiwan)
Si meng le Business (Taiwan) Strengthening product appeal and sales power ▽ Strengthened product appeal: Expanding the lineup of original products to make sales less susceptible to temperature fluctuations. Started to develop products that are popular in Japan, and have expanded the product lineup t
Slide 17: EC Business
EC Business Expand EC business and improve convenience ▽ H1 sales were 6.1 billion yen (EC ratio: 1.9%): Sales up 94.9% YoY. Percentage of in-store pickup: 83.9%. ▽ Expanding pre-order and build-to-order production: Expand sales with influencers, characters, and hot-selling products. In outerwear, t
Slide 18: Store Openings in FY2/25
Store Openings in FY2/25 Examples of Store Openings in Urban Areas ▽ Opened "Shimamura Shimotakaido Store" (Suginami-ku, Tokyo) in May. o Will continue to expand store openings in urban areas, including the opening of "Shimamura Seiyu Narimasu Store" (Itabashi-ku, Tokyo) in September. ■Location ■ SH
Slide 19: Initiatives for ESG Issues ①
Initiatives for ESG Issues ① Mid-Term Management Plan 2027 *1 Plastic hangers of the color specified by our company that are attached to the product *2 Transparent plastic (polypropylene material) used to protect the product during delivery *3 Shimamura continues to eliminate product waste. We will
Slide 20: Initiatives for ESG Issues ②
Initiatives for ESG Issues ② Results for H1 (Environment and Society) ▽ Clothing collection experiment: A clothing collection experiment aiming for clothing-to-clothing recycling will begin in 2024. Identify issues in store and logistics operations, and aim to create a system for clothing collection
Slide 21: Consolidated Business Forecasts for FY2/25
Consolidated Business Forecasts for FY2/25 ▽ Net sales (plan): Up 3.9% YoY, Operating income (plan): Up 1.9% YoY ▽ SG&A (plan): Up 4.8% YoY. Personnel expenses are planned to increase 6.2% YoY. ▽ Dividend per share (plan): Annual dividend is expected to be 190 yen. (Million yen/%) FY2/25 YoY Ratio t
Slide 22: Information Disclosure
Information Disclosure Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): October 1 (Tuesday) ▽ Summary of Financial Results (English): October 1 (Tuesday) ▽ Financial Results (Summary of Question and Answer Session): October 2 (W
Slide 23: 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