Workman Co., Ltd. · TSE:7564
Workman — Q1 FY3/2025 Earnings Presentation
25 slides from Workman's earnings presentation, Aug 5, 2024
Slide 1: Materials for Briefing Session on Q1 Financial Results FY Ending March 2025
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 August 5, 2024
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the First Quarter of the Fiscal Year 3 Ending March 31, 2025 ●Overview of Financial Results for the First Quarter of the 7 Fiscal Year Ending March 31, 2025 ●Plans for the Fiscal Year Ending March 31, 2025 17 ©2024 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
Briefing Contents ●Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 ©2024 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement FY 3/2024 FY 3/2025 YoY （Millions of yen） Q1 Q1 （％） ➢ Financial Results Highlights ●Sales at all chain stores Sales at all chain stores 47,911 49,867 +4.1 ・Despite favorable weather conditions, sales fell short of plan targets as a result of changes in customer behavior a
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A FY 3/2024 FY 3/2025 (Millions of yen) ratio ratio Change YoY (％) Q1 （％） Q1 （％） ➢ Factors of increase/decrease Sales at all ●Labor cost chain stores 47,911 － 49,867 － － +4.1 ・Regular salary increase: +5.1％. Average number of emp
Slide 6: Balance Sheet
Balance Sheet FY 3/2024 End of FY 3/2025 Change （Millions of yen) Q1 FY 3/2024 Q1 ➢ Factors of increase/decrease Current assets 100,945 112,648 110,943 △1,704 ●Cash and deposits Cash and deposits 64,598 68,187 70,691 +2,503 ・Free cash flow: +7,985 million yen ・Payments of dividends: △5,451 million y
Slide 7: Overview of Financial Results for the First Quarter
Briefing Contents ●Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 ©2024 WORKMAN CO., LTD. All Rights Reserved 7
Slide 8: Store Openings: 1,020 stores at the end of June 2024
Store Openings ●Promote the expansion of areas for opening new #WORKMAN GIRL stores and the shift to business categories that meet local needs 1,020 stores at the end of June 2024 (up 9 stores over end-March 2024) Number of New store openings Excluding Number of stores at increase stores at (Number
Slide 9: Monthly Trends and Factors
Monthly Trends and Factors ● Rise/Fall in Same-Store Sales, Number of Customers and Average Customer Spending （％） Rise/fall in sales Rise/fall in number of customers Average customer spending Q1 overview While seasonal products sold steadily, sales of year-round products for the professional 14.1 ma
Slide 10: Status of Sales: 49,867 Million Yen
Status of Sales ● Sales at All Chain Stores 49,867 Million Yen ●Sales at existing stores by prefecture All chain stores Existing stores ・As the sales levels in the previous Q1 set the bar low, many areas saw a turnaround to positive growth. Net sales +4.1％ +0.6％ ・Sales in the Tohoku area were slow d
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ● Sales of products for the general market grew in line with the expansion of #WORKMAN GIRL store openings ※1.Sales are calculated by product. These are not the product of a customer analysis. ●Trends in the sales ※2.Calculations exclude products on manufacturer’
Slide 12: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) While new store openings, S&B, and renovations contribute to growth in sales, sales numbers decline starting from the second year. （％） 1 . 1 . 2.8 1 .1 7.9% 1.2% 1 . △ . 1 . . . 1 2. 1.1 △ .1 △ .2 Sale
Slide 13: Status of Sales (Sales by Product and Factors)
Status of Sales (Sales by Product and Factors) ●Summer products sold well in each category, with undergarments and casualwear driving sales results. （Millions of yen） FY 3/24 Q1 FY 3/25 Q1 Category Factors (YoY) Sales YoY Sales YoY ・Ladies’ summer supplies (+374.6％) Undergarments・Socks Undergarments
Slide 14: Sales of PB Products 34,401 Million Yen
Status of Sales (Sales by Product and Factors) ● Sales of PB Products 34,401 Million Yen (Up 5.5％ YoY) ●Sales results by brand ●Changes in the PB ratio （The ratio to sales at all chain stores) Number of items （Millions of yen） (the previous year) Sales value (YoY) 80.0% 68.1% 69.1% Work & Outdoor 52
Slide 15: Format of Store Operations
Format of Store Operations ● Ratio of Franchise Stores 94.3％ (Up 0.1 points YoY) ●Format of Store Operations for FY 3/25 Q1 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Number Format March Up Down June of stores
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Although inventories of winter products remain an issue, summer products are selling well and inventory optimization is progressing. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Store inventories, including summer products, are being ・Cons
Slide 17: Plans for the Fiscal Year Ending March 2025
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2025 ©2024 WORKMAN CO., LTD. All Rights Reserved 17
Slide 18: Plans for FY Ending March 31, 2025: Management Policy
Plans for FY Ending March 31, 2025 ● Management Policy 1. order to revitalize existing stores. Maintain sales growth by aggressively opening stores and improving operations in 2. a flexible pricing policy. Improve profitability by developing products with increased added value and adopting Store Ope
Slide 19: Store Opening Plans
Store Opening Plans ●Full-scale opening of #WORKMAN GIRL stores will begin in the second half of the fiscal year, aiming to establish a 400-store network. Number of Openings set for FY 3/25 Excluding Number of Medium/ stores at increase/ (Number of stores) S＆B※2 Renovation Closures stores at end lon
Slide 20: Product Development (for General Customers)
Product Development (for General Customers) ●Facilitate repeat customers by developing products for the mass market and enhancing the casualwear line ●Expand the undergarments lineup ●Enhance men’s casualwear Merino wool ICE CHARGE Japanese paper x As smooth as merino wool blend your own skin that i
Slide 21: Product Development (for Professional Customers)
Product Development (for Professional Customers) ●Take on the challenge of creating value with comfortable work products ●Event to experience using Hata-”Raku” products ●Featured products pickup！ Peltier vest PRO 19,800 yen ・The Peltier device that covers the largest area ・Improved cooling and therm
Slide 22: Pricing Policy for the Fiscal Year Ending March 2025
Pricing Policy for the Fiscal Year Ending March 2025 ●In light of the ongoing weakening of the yen, secure profitability by reviewing the prices of some products. ●Average settlement rate (accounting period) ●Forward exchange contracts ・The depreciation of the yen caused the highest rate of increase
Slide 23: Sales Strategy
Sales Strategy ●2 2 Autumn and inter ew roduct resentation Theme: “ unctional Ratings, tart!” ●Overview ●Key points Photo: 2024 spring and summer ① new product presentation ・Visualize product characteristics by indicating the grade for each function ・Apparel companies boost their functional appeal ・
Slide 24: Plans for the Fiscal Year Ending March 2025
Plans for the Fiscal Year Ending March 2025 ●There is no change from the plan adopted at the start of the year. We aim to increase both revenue and profit for the full year. （％） Sales at all chain stores 183,980 Million yen YoY +5.0％ Sales at all chain stores Rate of progression 27.1％ Total operatin
Slide 25: Disclaimer
■We have prepared this document solely for the purpose of facilitating understanding of WORKMAN, and not for the purpose of soliciting investment in the Company. As such, investors are advised to make investment decisions at their own discretion. ■ Whereas every effort has been made to ensure the ac