Vega Corporation Co., Ltd. · TSE:3542
Vega — Q1 FY2024 Earnings Presentation
31 slides from Vega's earnings presentation, August 2023
Slide 1: Quarterly Financial Results
Quarterly Financial Results For the Three Months Ended June 30, 2023 Vega corporation Co., Ltd. / Securities code: 3542
Slide 2: Index
Overview of Quarterly Financial Results 1 for the Three Months Ended June 30, 2023 INDEX 2 Report on LOWYA Business 3 Report on DOKODEMO Business Financial results briefing materials 2
Slide 3: Overview of Quarterly Financial Results
Overview of Quarterly Financial Results 1 for the Three Months Ended June 30, 2023 Financial results briefing materials
Slide 4: Financial Highlight
Financial Highlight Net sales for the whole company were 4,154 million yen (98.9% YoY), while operating profit landed at -34 million yen. The LOWYA business remained strong and exceeded the performance of the same period last year, but the DOKODEMO business distribution was sluggish. Company-wide ne
Slide 5: Quarterly Net Sales and Operating Profit
Quarterly Net Sales and Operating Profit Total net sales for the whole company progressed the same YoY, but operating profit fell into a negative. The LOWYA business faced the issue of controlling the cost of sales ratio, and the DOKODEMO business faced the issue of maintaining and expanding gross m
Slide 6: Causes of Increase/Decrease in Quarterly Operating Profit
Causes of Increase/Decrease in Quarterly Operating Profit As a result of consolidating distribution bases, improving the efficiency of delivery, etc. for the LOWYA business in the previous fiscal year, we reduced SG&A expenses by 76 million yen YoY. However, the impact of the rise in the cost of sal
Slide 7: Balance Sheet
Balance Sheet The Company continued to be debt free and maintained a high equity ratio of 78.1%. (Million yen) Current fiscal year Current fiscal year Previous fiscal year Previous fiscal year 1Q 1Q (as of Mar. 31, 2023) (as of Mar. 31, 2023) (as of June 30, 2023) (as of June 30, 2023) Current asset
Slide 8: Report on LOWYA Business
Financial results briefing materials 2 Report on LOWYA Business
Slide 9: Major Indicators
Major Indicators GMV of the LOWYA business was 4,239 million yen (99.4% YoY), and net sales progressed steadily at 4,045 million yen (101.1% YoY). Membership of the flagship store has continued to grow steadily. The Company opened an actual store in April 2023 and also expanded the number of wholesa
Slide 10: Quarterly Net Sales
Quarterly Net Sales Despite the increase in outings due to the shift in the classification of COVID-19 infections and suppression of large sales on LOWYA Day, net sales were 4,045 million yen (101.1% YoY), exceeding those of the same period last year. (Million yen) Net sales Net sales YoY 101.1% 6,0
Slide 11: Business Total Monthly Net Sales
Business Total Monthly Net Sales Net sales in the overall LOWYA business (flagship store + e-commerce marketplace store) for 1Q have continued to perform well, despite an increase in outings and suppression of large sales on LOWYA Day. (Million yen） FY2023 FY2024 YoY 2,000 105.9% 1,818 99.5% 98.4% 1
Slide 12: Number of Customers/Average Basket Value
Number of Customers/Average Basket Value Both the number of customers and average basket value remained stable. (People) No. of customers Avg. basket value (Yen) 293,983 300,000 30,000 264,427 251,611 250,000 228,016 236,939 236,515 229,231 228,440 228,434 222,101 218,855 219,025 208,245 25,000 200,
Slide 13: Gross Profit Margin (vs. Net Sales)
Gross Profit Margin (vs. Net Sales) Although the gross profit margin declined 3.6 pt YoY due to the significant depreciation of the yen, it has been improving since bottoming out in 4Q. Improvement in gross profit margin continues to be an issue. (%) Gross profit margin 58.2 3.6 pt reduction 57.6 57
Slide 14: Quarterly SG&A Expenses and SG&A Expenses Ratio
Quarterly SG&A Expenses and SG&A Expenses Ratio (against Net Sales) The Company achieved a 2.4 pt (76 million yen) YoY reduction in SG&A expenses by consolidating distribution bases, improving the efficiency of delivery, etc. in the previous fiscal year. However, SG&A expenses increased compared to
Slide 15: Flagship Store Membership, Age Distribution, Ratio of Male vs. Female
Flagship Store Membership, Age Distribution, Ratio of Male vs. Female Overall membership of the flagship store is steadily increasing, with strong support from the main target group (people in their 20s and 30s). Trend in overall membership of flagship store Age distribution (Thousand people) 60 and
Slide 16: New Products
New Products The Company released products with a focus on private brand products that are design- and trend- conscious, and has strived to set prices that are affordable, taking advantage of its cost competitive edge. Living Kids Bed with storage Small-space laundry storage Neck ice for kids 3 4 ,
Slide 17: Apps and Social Media
Apps and Social Media The internally-developed official app and operation of social media function as the key to attracting customers. Sizes of engagement channels that deliver a unique brand image to a wide range of users (as of June 30, 2023) LOWYA official app Smartphone app 950,000 downloads (cu
Slide 18: Initiatives with AEON RETAIL Co., Ltd. (Wholesale)
Initiatives with AEON RETAIL Co., Ltd. (Wholesale) The Company set out its products at the Chigasaki-Chuo Store (Kanagawa Prefecture), Sakudaira Store (Nagano Prefecture), and Okayama Store (Okayama Prefecture) of AEON RETAIL Co., Ltd., thereby expanding its sales floor area. Chigasaki-Chuo Store Sa
Slide 19: Directly Managed Store: Opening of Actual Store (Exterior)
Directly Managed Store: Opening of Actual Store (Exterior) April 2023 — First actual store opened in “ITO Lab Plus” in Nishi-ku, Fukuoka City. Exterior Exterior 19
Slide 20: Directly Managed Store: Opening of Actual Store (Interior)
Directly Managed Store: Opening of Actual Store (Interior) April 2023 — First actual store opened in “ITO Lab Plus” in Nishi-ku, Fukuoka City. Interior Interior 20
Slide 21: Directly Managed Store: Opening of Actual Store (Opening Day)
Directly Managed Store: Opening of Actual Store (Opening Day) April 2023 — First actual store opened in “ITO Lab Plus” in Nishi-ku, Fukuoka City. A long line at store open A hugely successful open day turnout 21
Slide 22: Directly Managed Store: Effect of Attracting Customers to Online Store
Directly Managed Store: Effect of Attracting Customers to Online Store Since opening in April, the percentage of online orders received around the store areas has increased. Approximately 80% of visitors to the store recognized the brand, and the store meets their needs for physical confirmation of
Slide 23: Directly Managed Store: The Second Store
Directly Managed Store: The Second Store The Company plans to open a second directly managed store in a commercial facility located in Namba, a major terminal station in the Kansai area. The Company will continue to study the possibility of nationwide expansion. Store location: NAMBA PARKS (Naniwa-k
Slide 24: LOWYA Day
LOWYA Day A public relations event based on the concept of “LOWYA Home Party” was held on LOWYA Day (June 8-11, 2023). Many customers visited the POP UP SHOP (Shibuya, Tokyo) and LOWYA Kyudai Ito Store over the four days. POP UP SHOP (Shibuya, Tokyo) LOWYA Kyudai Ito Store 24
Slide 25: Community Site (THE 608 HOTEL)
Community Site (THE 608 HOTEL [THE LOWYA HOTEL]) The Company created a fan community to build customer-centered two-way communication. LOWYA’s official fan community Social Event A social event was held the day before the opening of “LOWYA POP UP in Shibuya”! Lots of “LOWYA love” filled the venue! T
Slide 26: Sustainability
Sustainability Of ESG, the Company conducted activities related to the environment and society. It will also continue making various studies, including consideration of measures to strengthen governance. Change of donation recipients Raising the base pay Donation of photographed goods for shareholde
Slide 27: Report on DOKODEMO Business
Financial results briefing materials 3 Report on DOKODEMO Business
Slide 28: Major Indicators
Major Indicators DOKODEMO business GMV was 748 million yen (47.6% YoY), while net sales were 109 million yen (55.0% YoY). Membership and the number of app DLs increased smoothly. GMV *1 Net sales Membership Number of app DLs 748 million yen 109 million yen 1,030 thousand 1,485 thousand YoY 47.6% YoY
Slide 29: GMV and Net Business Income
GMV and Net Business Income The GMV of the DOKODEMO business in 1Q landed at 748 million yen partly due to an increase in inbound sales and an inventory shortage of popular drugs. GMV Net Business Income (Million yen） (Million yen） 1,800 30 24 1,573 1,600 20 1,400 10 1,246 1,198 1,200 (0) 0 1,021 1,
Slide 30: Ratio of GMV by Destination Area
Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for more than 90% of GMV. By region By 国別 country Middle East 0.5％ Oceania 1.1％ Europe 1.5% North America Korea 5.1％ 米国 US 0.3％ 香港 Hong Kong 2.9％ 4.2 台湾 Taiwan .3％ 56.8 ％ 84.8 83 .6％ Malaysia Asia 0.2％ Philippines 0.3％ 91 .8
Slide 31: IR Inquiries
Views and forecasts in this document were prepared based on the judgment of the Company at the time of preparation. These statements are based on current expectations, forecasts, and assumptions that are subject to risks, and contain uncertainties that could IR Inquiries cause actual outcomes to dif