Shimamura Co., Ltd. · TSE:8227
Shimamura — Q3 FY2/23 Earnings Presentation
20 slides from Shimamura's earnings presentation, Dec 26, 2022
Slide 1: Financial Results for Q3 of FY2/23
Financial Results for Q3 of FY2/23 December 26, 2022 1
Slide 2: 1. Consolidated Results: Income Statement
1. Consolidated Results: Income Statement ▽Sales increased by 6.2% YoY. Record-high sales for Q3 alone and for the nine months period. ▽SG&A to sales ratio was 25.1% (▲0.5ppt. YoY). Controlled expenses by improving the efficiency of advertising and promotion activities. ▽Operating income was 44.5 bi
Slide 3: 2. Sales by Business
2. Sales by Business ▽Domestic sales increased by 6.1% YoY due to the further enhancement of brand power, development of new influencer projects and character products, diversification of sales promotion methods, and regional response. ▽In Si meng le (Taiwan), sales of autumn/winter products were sl
Slide 4: 3. Consolidated Results: SG&A Expenses
3. Consolidated Results: SG&A Expenses ▽ Personnel expenses: Increased by 5.7% YoY due to a wage increase in spring. It has been incorporated into the plan. ▽ Advertising expenses: Ratio to sales was 1.9%, controlled by the expansion and diversification of digital sales promotions. ▽ Equipment cost:
Slide 5: 4. Consolidated Results: Balance Sheets
4. Consolidated Results: Balance Sheets ▽ Assets: Cash and deposits, accounts receivable, and valuable securities increased by 11.7% YoY. ▽ Liabilities: Mainly in accrued income tax and accrued consumption tax increased. (Million yen/％) Composition Composition End-Nov. 2022 ratio YoY End-Nov. 2021 r
Slide 6: 5. Existing stores sales, Number of customers, Spending per customer
5. Existing stores sales,Number of customers,Spending per customer(YoY） ▽ Increase in existing stores sales: Strengthened product appeal and sales power. Continued individual response to each region and store. ▽ Increase in number of customers: Influencer projects, character products, and new catego
Slide 7: 6. Gross profit, Price Reduction, Inventory YoY
6. Gross profit, Price Reduction, Inventory YoY ▽ Gross profit：By shifting to the new price range, the decline in the markup rate is kept down to secure gross profit. ▽ Price reduction：Curbed price reductions through appropriate inventory control and short-term production. ▽ Inventory：Within the app
Slide 8: 7. Shimamura Business ①
7. Shimamura Business ① Strengthening product appeal ▽Further enhancement of brands: Further enhancement of brands: Composition of in-house brands was 30.8% (PB (including FIBER) + JB) PB sales increased by 14.8% YoY (Q3 cumulative), launching sustainable products in PB. ▽Rebranded a high-performanc
Slide 9: 7. Shimamura Business ②
7. Shimamura Business ② Strengthening product appeal ▽Improvement of JB's planning capability: JB ratio was 8.6%, and JB sales increased by 8.5% YoY (Q3 cumulative). ▽Urban area stores: New influencers are also actively recruited to offer coordinated proposals. ▽Character products: Commercialized pr
Slide 10: 7. Shimamura Business ③
7. Shimamura Business ③ Strengthening sales power ▽Diversification and use of digital sales promotions: 18 web advertisements (up 5 from Q3 of last year) ・The video shows the functionality of the PB products, trendy products, and the major event of the year, the Grand Opening Festival. ・Diversificat
Slide 11: 7. Shimamura Business ④
7. Shimamura Business ④ Strengthening sales power ▽Strengthen individual response to each store and region. ・280 stores in urban areas: Sales increased by 7.7% YoY (Q3 cumulative) thanks to exclusive products and flyers. ・Okinawa: Sales increased by 19.2% YoY through expansion of autumn products (Q3
Slide 12: 8. Avail Business
8. Avail Business Strengthening product appeal and sales power ▽Strengthening of trend proposals: JB ratio was 38.0% (Q3 cumulative). Utilization of short-term production, expansion of priority sales products, and launch of new campaigns such as Halloween. ▽Expansion of character products: Ratio of
Slide 13: 9. Birthday Business
9. Birthday Business Strengthening product appeal and sales power ▽Expansion of JB products: JB ratio was 26.3%, sales increased by 30.7% YoY (Q3 cumulative). Strong sales of "Cottoli" for newborns, "rabyraby" for school kids, and large child-care products. ▽PB "Birthday PLUS": Expansion of product
Slide 14: 10. EC Business
10. EC Business Expand EC business and improve convenience ▽Forecast 4 billion yen of sales for the full year: Progressed according to plan as the product lineup matched to the characteristics of each of the 4 businesses. Online sales limited influencer projects, character products, and regional-spe
Slide 15: 11. Promotion of DX
11. Promotion of DX Improve services and utilize data through the "Customer Management System“ ▽Issuance of digital membership cards: Centralized management of e-commerce and physical store members. 1.86 million members. ▽Enhancement of membership benefits: Increase customer contact points to improv
Slide 16: 12. Store Opening Policy
12．Store Opening Policy Promote development of highly profitable stores ▽Promote relocation of existing stores / Shimamura Kumano Store: Sales increased by 19% YoY (Q3). ▽Promote the opening of stores in the fashion mall (FM) format, which combines some businesses. ⇒ Revitalize same-store sales in s
Slide 17: 13. Risk Factors and Responses
13. Risk Factors and Responses Response to increase in purchase cost ▽ Results for Q3 ①Although the markup rate is lower than the previous year, we will secure gross profit by shifting to the new price range and curbing price reductions. Unit price of Shimamura business: Increased by 5.9% YoY (Q3) ②
Slide 18: 14. Consolidated Business Forecasts for FY2/23
14. Consolidated Business Forecasts for FY2/23 ▽ Sales are expected to increase by 3.9% YoY, operating income are expected to increase by 5.3% YoY . ▽ Annual dividends per share are expected to be 250 yen (up by 10 yen). * There is no change from the announcement of financial results on April 4 (Mil
Slide 19: 15. Information Disclosure
15. Information Disclosure Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): December 26 (Monday) ▽ Summary of Financial Results (English version): December 27 (Tuesday) ▽ Financial Results (Summary of Question and Answer Session
Slide 20: 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