Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q1 FY2024 Earnings Presentation
33 slides from Tsi's earnings presentation, Jul 13, 2023
Slide 1: Results Briefing: Q1 (March to May 2023)
Results Briefing: Q1ST (March to May 2023)Results of 2024 Ending Feb. 13th July 2023
Slide 2: Agenda
AGENDA 1 Results Overview 2 About Business Situation by Channel 3 Brands Overview 4 About Balance Sheet 5 Initiatives in each area of TIP25 6 Initiatives related to the SDGs 7 Reference Data
Slide 3: Results Overview
| HOLDINGS eee . tae Results Overview
Slide 4: Highlights of Results for Q1
4 Highlights of Results for Q1ST of Results of 2024 Ending Feb. While net sales grew by 3.3% compared to the previous term, profitability improved as the result of structural reforms, achieving two-digit growth in operating income. Net Sales Operating Profit Quarterly Net Income 39.37 Billion Yen 1.
Slide 5: Changes in financial results for Q1 of term ending February 2024
5 Changes in financial results for the first quarter of the term ending February 2024 Gross Profit > Gross Profit 250 58.6% 57.3% • Foreign exchange fluctuations and sharp Gross Profit 200 56.0% 60.0% rises in the prices of raw materials 41.8% • Increase in the percentage of wholesale 22.56 Billion
Slide 6: Net Income Impact Items for Q1 Results
6 Net Income Impact Items for Q1ST Results of 2024 Ending Feb. Ordinary income was ¥2.42 billion, including non-operating profit/loss such as dividend income and real estate income. Net income for the first quarter was ¥1.98 billion, including ¥150 million in extraordinary profit/loss such as gains
Slide 7: About Business Situation by Channel
２ About Business Situation by Channel
Slide 8: Domestic Sales by Channel for Q1 Results
8 Sales by Channel for Q1ST Results of 2024 Ending Feb. The recovery of outing demand such as holiday making and business trips supplied a nice tailwind to sales, but the growth of brands for women, which had recovered earlier, slowed down. In addition, the withdrawal of some brands greatly affected
Slide 9: Sale Trends by Channel for Q1 Results
9 Sale Trends by Channel for Q1ST Results of 2024 Ending Feb. Due to the relaxation of movement restrictions and the downgrading of COVID-19 to a Category 5 infectious disease, street brands with many street outlets such as STUSSY, Schott, and LHP achieved growth. “and wander” also performed well in
Slide 10: E-commerce in Q1 Results
10 E-commerce in Q1ST Results of 2024 Ending Feb. ■ Overview of EC sales ➢ EC sales shrank due to the effects of business withdrawal (BOSCH) and the termination of agency agreements for SUNSPEL and UNDEFEATED (¥480 million). ➢ Although there were factors that decreased sales substantially, including
Slide 11: Brands Overview
３ Brands Overview
Slide 12: Individual Overview of Major Brands in Q1 Results
12 Individual Overview of Major Brands in Q1ST Results of 2024 Ending Feb. Key brands continued to perform well. Nine of the top-ranking ten brands in terms of sales saw their sales exceed those of the previous year. Sales for PEARLY GATES went below those of the previous year (see details below), b
Slide 13: About Balance Sheet
４ About Balance Sheet
Slide 14: About Balance Sheet
14 About Balance Sheet Unit:Million Yen > Cash and Deposits 【Comparison with the previous term】 Cumulative Q1ST 2023 FY Ending Feb. 2023 Cumulative Q1ST 2024 Ending Feb. Affected by increases in inventory assets and the Ending Feb. repayment of borrowings totaling ¥5.7 billion, cash Composition Comp
Slide 15: Initiatives in each area of TIP25
５ Initiatives in each area of TIP25
Slide 16: TSI Holdings Group's medium-term management plan TIP25
16 TSI Holdings Group’s medium-term management plan “TIP25” Announced on April 14, 2022 Medium-term management plan materials reposted H e n c e , t o l e a p t o w a r d 2 0 2 5 , w e h a ve u p d a t e d T I P 2 4 , t o t u r n i t i n t o t h e T S I I n n o va t i o n P r o g r a m 2 0 2 5 ( T I
Slide 17: TIP25 4 Divisions (domains)
17 TIP25 4Div.(domains) Announced on April 14, 2022 Medium-term management plan materials reposted Wellness & Lifestyle 1 Street & Culture 2 Wellness & lifestyle Street & culture Athleisure Create fashion entertainment Street Nurture street culture and that has a positive impact create fashion Outdo
Slide 18: TIP25 4 Divisions: brands by division
18 TIP25 4Div.(domains) Wellness & Lifestyle 1 Street & Culture 2 Wellness & Lifestyle Div. Street & Culture Div. 1. PEARLY GATES 10. MHL. 1. STÜSSY 9. B’2nd 2. PGG 11. Dice&Dice 2. HUF 10. BEAVER 3. MASTER BUNNY EDITION 12. SEVEN BY SEVEN 3. UNION 11. LHP 4. Jack Bunny!! 13. quitan 4. BAIT 12. ROYA
Slide 19: Wellness & Lifestyle: Creating attractive communities
19 Wellness & Lifestyle Creating attractive communities ¥12,649 million Sublimating apparel brands into community brands. 32.5% Net sales Yo Y c h a n g e Ratio to Developing entertainment business closely linked to lifestyles. 売上高 total sales ¥12.64 102.2％ 構成比 Billion “and wander” achieved rapid gr
Slide 20: Street & Culture: Platform for play rooted in the street spirit
20 Street & Culture Platform for play rooted in the street spirit ¥13,517 million By extending to the keyword “play,” the platform aims at 34.7% spreading itself to neighboring lifestyles, reinventing gears, Net sales Yo Y c h a n g e Ratio to 売上高 total sales and offering new experiences. ¥13.51 106
Slide 21: Fashion Capital: Services that respond to market trends
21 Fashion Capital Services that respond constantly to market trends and changes ¥9,737 million Being flexible enough to continue changing gracefully, granting 25.0% the wishes of customers, and extending a circle of happiness. Net sales YoY change Ratio 売上高to ¥9.73 106.4％ total 構成比 sales Billion NA
Slide 22: Digital Generation: Expanding content for the next generation
22 Digital Generation Continuously expanding content to win over the next generation of ¥3,073 million customers 7.9% Net sales YoY change Obtaining a favorable response and generating strong excitement Ratio 売上高to total sales through tangible and intangible content that expands infinitely. ¥3.07 10
Slide 23: Initiatives related to the SDGs
6 Initiatives related to the SDGs
Slide 24: Formulation of policies and changes of materialities
24 SDGs “Formulation of policies” and “addition and change of materialities” Following the human rights policy formulated in February of this year, TSI Holdings developed its sustainability policy, governance policy, environmental policy, and social policy. The company also reviewed its materialitie
Slide 25: Report on the TSI Group's SDG initiatives
25 SDGs Report on the TSI Group’s SDG initiatives Promoting the recycling and reuse of clothing, including remnants of cloth, with the aim of reducing the amount of clothing discarded to zero Processing collected end-of-use clothing into yarns and construction materials and reusing them as resources
Slide 26: A company creating fashion entertainment
Nurture worldwide empathy and social value through the power of fashion entertainment. A company creating fashion entertainment
Slide 27: Reference Data
7 Reference Data
Slide 28: Overview: Highlights of Q1 Results
28 Highlights of Q1ST Results of 2024 Ending Feb. Unit:Million Yen Cumulative Q1ST 2023 Overview Ending Feb. Cumulative Q1ST 2024 Ending Feb. (Revenue recognition standards) Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 38,122 100.0 39,372 100.0 1,250 103.3 G
Slide 29: Net Sales Per Channel
29 Highlights of Q1ST Results of 2024 Ending Feb. Unit:Million Yen Net Sales Cumulative Q1ST 2023 Cumulative Q1ST 2024 Ending Feb. Ending Feb. Per Channel Results Composition Results Composition Comp os it ion Rat e Y/Y (%) (Million yen) Rate (%) (Million yen) Rate (%) Y/Y Ch an ge(p t ) Department
Slide 30: Brands Overview
30 Highlights of Q1ST Results of 2024 Ending Feb. Unit:Million Yen Cumulative Q1ST 2023 Ending Feb. Cumulative Q1ST 2024 Ending Feb. YoY Brands Overview Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (%) 1. PEARLY GATE
Slide 31: Domestic Monthly Sales Information
31 Highlights of Q1ST Results of 2024 Ending Feb. Domestic Monthly Sales Information
Slide 32: The Number of Stores
32 Highlights of Q1ST Results of 2024 Ending Feb. The Number of Stores Cu mu lat ive Q 1ST FY En d in g Store Store Cu mu lat ive Q 1ST Y/Y Q1/Q4 2023 En d in g Feb . Feb . 2023 Open Close 2024 En d in g Feb . Change Change Do me stic 805 738 +26 -8 756 -49 18 Appa re l Ove rse a s 41 29 +1 - 30 -11
Slide 33: Notes on forward-looking statements and translation
・Descriptions about future within this document are based on the information that the company obtains on the date of this report and certain assumptions deemed to be reasonable. Actual earnings may differ materially from various future factors. ・This document has been translated from the Japanese or