United Arrows Ltd. · TSE:7606
United Arrows — H1 FY2025/3 Earnings Presentation
46 slides from United Arrows's earnings presentation, Nov 7, 2024
Slide 1: For the First Half of Fiscal Year Ending March 31, 2025
For the First Half of Fiscal Year Ending March 31, 2025 2024.11.07 UNITED ARROWS LTD.
Slide 2: | 1 Overview of FY2025/3 1H Business Results
P03– | 1 Overview of FY2025/3 1H Business Results P22– | 2 Progress in Sustainability Initiatives P25– | 3 Message from Matsuzaki, Representative Director, President, and CEO P40– | 4 Reference Materials
Slide 3: Cautionary Statement
Cautionary Statement Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks and uncertainties. Actual earnings may diffe
Slide 4: Overview of FY2025/3 1H Business Results
Overview of FY2025/3 1H Business Results Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 5: Financial Highlights
Overview of FY2025.3 1H Business Results Financial Highlights Consolidated Sales and gross profit exceeded the plan and the previous year, SGA expenses were slightly lower than planned, and operating income and all other profits significantly exceeded the plan and the previous year. Gross margin Alt
Slide 6: Consolidated Sales and Gross Margin
Overview of FY2025.3 1H Business Results Consolidated Sales Consolidated Gross Margin YoY ¥68,265 YoY million 111.9% 52.7% +0.2pt (Millions of yen) 68,265 52.7% 57,453 61,014 52.4% 53,259 52.0% 50,437 49.2% 42.9% FY21/3 1H FY22/3 1H FY23/3 1H FY24/3 1H FY25/3 1H FY21/3 1H FY22/3 1H FY23/3 1H FY24/3
Slide 7: Consolidated operating income and net income
Overview of FY2025.3 1H Business Results Consolidated operating income Net income attributable to owners of parent ¥2,953 ¥1,898 YoY YoY million 166.4% million 133.1% (Millions of yen) (Millions of yen) 2,953 1,898 1,385 1,775 1,074 1,426 (1,994) (2,648) (5,097) (6,840) FY21/3 1H FY22/3 1H FY23/3 1H
Slide 8: Consolidated P/L
Overview of FY2025.3 1H Business Results Consolidated P/L (Millions of yen) FY24/3 FY25/3 Change/pt YoY 1H 1H difference Sales 61,014 68,265 7,251 111.9% Gross profit 31,993 35,953 3,959 112.4% vs. sales 52.4% 52.7% 0.2pt - SGA expenses 30,218 32,999 2,781 109.2% vs. sales 49.5% 48.3% - 1.2pt - Oper
Slide 9: Consolidated P/L 2Q (3 Months)
Overview of FY2025.3 1H Business Results Consolidated P/L 2Q (3 Months) (Millions of yen) FY24/3 FY25/3 Change/pt YoY 2Q 2Q difference Sales 28,858 32,769 3,911 113.6% Gross profit 14,314 16,540 2,225 115.5% vs. sales 49.6% 50.5% 0.9pt - SGA expenses 15,041 16,355 1,313 108.7% vs. sales 52.1% 49.9%
Slide 10: Consolidated Gross Margin
Overview of FY2025.3 1H Business Results Consolidated Gross Margin Consolidated, non-consolidated and Taiwanese subsidiary exceeded previous year’s results Non-consolidated business unit also performed well, with the exception of June when discount price sales were brought forward, and the first hal
Slide 11: Consolidated Gross Margin 2Q (3 Months)
Overview of FY2025.3 1H Business Results Consolidated Gross Margin 2Q (3 Months) FY25/3 YoY 2Q pt difference Consolidated 50.5% 0.9pt UNITED ARROWS LTD. 49.7% 1.0pt Total business unit - 0.3pt Outlet, etc. - 2.1pt COEN CO., LTD. - -0.6pt UNITED ARROWS TAIWAN LTD. - 2.3pt 10
Slide 12: Consolidated SGA Expenses
Overview of FY2025.3 1H Business Results Consolidated SGA Expenses (Millions of yen) Change/pt FY24/3 1H FY25/3 1H difference YoY Total SGA expenses 30,218 32,999 2,781 109.2% vs. sales 49.5% 48.3% - 1.2pt - Advertising expenses 1,928 1,906 (21) 98.9% vs. sales 3.2% 2.8% - 0.4pt - Personnel expenses
Slide 13: Consolidated SGA Expenses 2Q (3 Months)
Overview of FY2025.3 1H Business Results Consolidated SGA Expenses 2Q (3 Months) (Millions of yen) Change/pt FY24/3 2Q FY25/3 2Q difference YoY Total SGA expenses 15,041 16,355 1,313 108.7% vs. sales 52.1% 49.9% - 2.2pt - Advertising expenses 1,207 986 (221) 81.7% vs. sales 4.2% 3.0% - 1.2pt - Perso
Slide 14: Consolidated B/S
Overview of FY2025.3 1H Business Results Consolidated B/S (Millions of yen) vs. previous term-end As of Mar. 31, 2024 As of Sept. 30, 2024 Change Total Assets 60,204 68,788 8,584 114.3% Composition ratio 100.0% 100.0% - - Current Assets 40,372 46,489 6,116 115.2% Composition ratio 67.1% 67.6% - Nonc
Slide 15: Consolidated C/F
Overview of FY2025.3 1H Business Results Consolidated C/F (Millions of yen) FY24/3 1H FY25/3 1H Major breakdown of the results for the term Cash flows from operating activities (sub-total) 2,199 3,573 Income before income taxes 3,009 Decrease in trade receivables 1,403 Cash flows from operating acti
Slide 16: Non-consolidated Sales and Gross Margin
Overview of FY2025.3 1H Business Results Non-consolidated Sales Non-consolidated Gross Margin Non-consolidated Existing Stores YoY YoY ¥62,704 YoY million 112.5% 52.4% +0.4pt Sales 112.8% Number of (Millions of yen) 62,704 purchasing customers 110.0% 55,737 52.4% 51,996 43,740 45,531 52.1% 102.4% 51
Slide 17: Non-consolidated Sales by Channel
Overview of FY2025.3 1H Business Results Non-consolidated Sales by Channel (Millions of yen) Existing stores YoY FY24/3 FY25/3 Change/pt Avg. spend YoY Number of 1H 1H difference Sales per customers customer Non-consolidated sales 55,737 62,704 6,966 112.5% Retail + Online 112.8% 110.0% 102.4% Retai
Slide 18: Non-consolidated Sales by Business
Overview of FY2025.3 1H Business Results Non-consolidated Sales by Business (Millions of yen) FY24/3 FY25/3 Change YoY 1H 1H Total business unit sales 46,832 53,350 6,518 113.9% Trend-conscious Market 31,668 35,321 3,653 111.5% Basic Trend-conscious Market 15,164 18,029 2,864 118.9% Existing store s
Slide 19: Group Company Results
Overview of FY2025.3 1H Business Results Group Company Results (Millions of yen) 5,071 5,032 COEN CO., LTD. Feb. – Jul. Saw increase in sales and decrease in profit 4,844 4,889 • Sales ¥5,071 million, YoY 103.7% 4,789 • Recovery continues, especially in physical stores, with sales exceeding the prev
Slide 20: Opening and Closing of Stores
Overview of FY2025.3 1H Business Results Opening and Closing of Stores The number of stores at the end of the fiscal year will be 325, an increase of 24 from the end of the previous fiscal year, due to the addition of 5 stores of BOOT BLACK JAPAN Co.,Ltd, which became a group company on October 1, 2
Slide 21: Revision of Earnings Forecast (Full-year)
Overview of FY2025.3 1H Business Results Revision of Earnings Forecast (Full-year) Reviewed the full-year forecasts reflecting the first-half results, October trends, and revised store opening plans, and revised operating income up to ¥7,700 million, ordinary income to ¥8,320 million, and net income
Slide 22: Revision of Earnings Forecast (Second Half)
Overview of FY2025.3 1H Business Results Revision of Earnings Forecast (Second Half) (Millions of yen) FY25/3 2H Estimate second-half sales of ¥82,694 million, up 112.9% YoY, FY24/3 2H Revised forecast YoY and gross margin of 52.0%, up 0.8 pts YoY. change/vs. sales pt difference Sales 73,255 82,694
Slide 23: Progress in Sustainability Initiatives
Progress in Sustainability Initiatives Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 24: UA RECYCLE ACTION and Clothing Cultural Festival
Progress in Sustainability Initiatives UA RECYCLE ACTION Participating in “Clothing Cultural Festival vol. 1” • At stores nationwide from August 16 to August 31, 2024 to create a new cycle together • Attended by 9,247 people with 6,245.3 kg of unwanted clothes, shoes • Held at the “KISARAZU CONCEPT
Slide 25: Third-party verification of GHG emissions and anti-bribery disclosure
Progress in Sustainability Initiatives Third-party verification of GHG emissions and Disclosure of efforts to prevent bribery and water usage corruption • Conducted third-party verification to improve the reliability of disclosed • Disclosed on the sustainability website in October 2024 information
Slide 26: Message from Matsuzaki, Representative Director, President, and CEO
Message from Matsuzaki, Representative Director, President, and CEO Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 27: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Grow and Expand Existing Businesses] Top-line growth • Existing store sales increased significantly in both retail and online stores due to improved prod
Slide 28: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Grow and Expand Existing Businesses] Top-line growth • By optimizing prices to suit market characteristics, both markets achieved double-digit growth fro
Slide 29: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Grow and Expand Existing Businesses] Top-line growth • Active promotions to boost sales in the fall and winter seasons UNITED ARROWS BEAUTY&YOUTH green l
Slide 30: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Strengthen Brand Appeal] Rebranding of the corporate brand • Celebrating the 35th anniversary, we are launching new communications for the next generatio
Slide 31: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Strengthen Brand Appeal] STAFF OF THE YEAR Grand Prix winner for two consecutive years • “STAFF OF THE YEAR 2024”* is an event to determine the “Reiwa er
Slide 32: 1. UA CREATIVITY Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 1. UA CREATIVITY Strategy [Re-grow COEN] Entering the recovery phase from the spring/summer season • Starting in fall and winter, do promotions featuring Hiroe Igeta, aiming COEN C
Slide 33: 2. UA MULTI Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 2. UA MULTI Strategy [Develop Non-apparel Businesses] Physical stores of new businesses, ATTISESSION and conte, opened in September • ATTISESSION opened its first store in LUMINE S
Slide 34: 2. UA MULTI Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 2. UA MULTI Strategy [Develop Non-apparel Businesses] Acquired exclusive sales rights for Korean bag brand “OSOI” in Japan • The brand has two stores in South Korea. With a track r
Slide 35: 2. UA MULTI Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 2. UA MULTI Strategy [Develop Non-apparel Businesses] Acquired exclusive sales rights for Korean bag brand “OSOI” in Japan • Available products (Spring/Summer 2025 season): “OSOI”
Slide 36: 2. UA MULTI Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 2. UA MULTI Strategy [Global Expansion] Open first directly managed store in Shanghai, Open a pop-up store in Hangzhou, mainland China mainland China • End of September 2024 to end
Slide 37: 2. UA MULTI Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 2. UA MULTI Strategy [M&A] Acquired all shares of BOOT BLACK JAPAN Co., Ltd., which operates a shoeshine service • Acquired all shares of BOOT BLACK JAPAN Co., Ltd. on October 1, 2
Slide 38: 3. UA DIGITAL Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 3. UA DIGITAL Strategy UA Club performance over one year of operation (as of the end of July 2024) ・All indicators performed well UA Club membership sales Number of active members
Slide 39: 3. UA DIGITAL Strategy
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan 3. UA DIGITAL Strategy Renewal of UA Online Official App • In October 2024, the user interface was significantly changed and improved to a more intuitive and easy-to-operate design
Slide 40: Three Key Strategies
Message from Matsuzaki, Representative Director, President, and CEO: Progress Report on the Medium-Term Management Plan Three Key Strategies 39
Slide 41: Reference Materials
Reference Materials Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 42: Consolidated Earnings Forecast (Revised on 2024/11/7)
Reference Materials Consolidated Earnings Forecast (Revised on 2024/11/7) (Millions of yen) Sales ¥ 150,960 million (YoY 112.4%) FY24/3 FY25/3 YoY Revised forecast change/vs. sales pt difference Gross margin 52.3% (YoY difference 0.6 pts) Sales 134,269 150,960 16,690 112.4% Gross profit 69,462 78,93
Slide 43: Gross Margin Forecast
Reference Materials Gross Margin Forecast FY25/3 FY25/3 FY25/3 1H YoY 2H YoY Full year YoY (Results) (Revised forecast) (Revised forecast) Consolidated 52.7% 0.2pt 52.0% 0.8pt 52.3% 0.6pt UNITED ARROWS LTD. 52.4% 0.4pt 51.6% 0.7pt 52.0% 0.5pt Total business unit - 0.1pt - - - - Outlet, etc. - 2.8pt
Slide 44: Non-consolidated Sales Forecast
Reference Materials Non-consolidated Sales Forecast (Millions of yen) FY25/3 FY25/3 FY25/3 1H 2H Full year (Results) YoY (Revised forecast) YoY (Revised forecast) YoY Non-consolidated sales 62,704 112.5% 75,993 111.8% 138,697 112.1% Retail + Online Existing Stores - 112.8% - 109.8% - 109.7% Retail E
Slide 45: Financial impact of transition to UA Club
Reference Materials Financial impact of transition to UA Club Due to the difference in the Assuming future use of the increase, a portion of the The increased amount will be Convert old “points” held by return rates, the amount increase was lumped into the recorded as a sales discount members to “mi
Slide 46: UNITED ARROWS LTD. Retail Store Opening and Closing
Reference Materials UNITED ARROWS LTD. Retail Store Opening and Closing 1H results Full-year forecast No. of stores at No. of stores at No. of stores at the previous Opened Closed Opened Closed the period end 1H end period end (Forecast) UNITED ARROWS LTD. Total 221 10 1 230 18 3 236 Trend-conscious