Slide 1: Financial Results for Q3 of FY2/24
Financial Results for Q3 of FY2/24 December 25, 2023 1
Slide 2: Table of Contents
Table of Contents １. Q3 Financial Summary P. 3 - 10 ２. Initiatives by Business P. 11 - 18 ３. Consolidated Business P. 19 Forecasts for FY2/24 ４. Stock Split P. 20 2
Slide 3: Summary
Summary *Figures in parentheses indicate year-on-year change (pt). ・Both sales and profits increased despite the lingering summer heat and warm winter weather, through strengthening product and sales capabilities. Brief ・Despite the inflationary environment, gross profit and SG&A expenses were gener
Slide 4: Consolidated Results: Income Statement
Consolidated Results: Income Statement ▽ Net sales: Net sales: 479.6 billion yen (up 3.4% YoY). Record high for cumulative Q3. ▽ SG&A ratio: 25.5 % (+0.4pt YoY ). It was generally in line with the plan through effective cost control in Q3. ▽ Operating income: 45.6 billion yen (up 2.5% YoY). All prof
Slide 5: Changes in Existing store Sales and External Factors
Changes in Existing store Sales and External Factors YoY Changes in Existing store Sales (％) Shimamura Avail Birthday Q1 Q2 Q3 Shimamura ：105.6％ Shimamura ：105.7％ Shimamura ：101.1％ Avail ：107.7％ Avail ：107.4％ Avail ： 98.5％ 120 Birthday ：100.3％ Birthday ： 99.6％ Birthday ： 95.4％ 115 112.0 110 104.3 10
Slide 6: Sales by Business
Sales by Business ▽ Domestic sales increased 3.2% YoY due to further enhancement of brand power, product lineup expansion, diversification of sales promotion methods, and enhancement of regional response. ▽ Sales of Si meng le (Taiwan) performed well, up 19.6% YoY, thanks to the expansion of PB and
Slide 7: Consolidated Results: SG&A Expenses
Consolidated Results: SG&A Expenses ▽ Personnel expenses: Up 7.0% YoY due to wage increases in spring. Large effect on eliminating labor shortages and lowering the turnover rate. ▽ Advertising expenses: Aggressive sales promotions, such as the 70th anniversary sale and TGC exhibitions, also kept dow
Slide 8: Consolidated Results: Balance Sheets
Consolidated Results: Balance Sheets ▽ Assets: Cash + Accounts receivable + investment securities up 4.4% YoY Merchandise increased 0.8% from the end of the same period last year. ▽ Liabilities: Accounts payable-trade and accrued income taxes decreased. (Million yen/%) Composition Composition End-No
Slide 9: Sales, Number of customers, Spending per customer YoY
Sales,Number of customers,Spending per customer YoY ▽ Existing store sales at Shimamura are steady: Attract customers by launching product lineups and plans that are less susceptible to temperature. ▽ Customer numbers in Q3 declined in all businesses: the number of customers declined from the previo
Slide 10: Gross profit, Price reduction, Inventory YoY
Gross profit, Price reduction, Inventory YoY ▽ Gross profit: In Shimamura and Avail, the markup rate improved and the gross margin improved due to the transition to a new price range. ▽ Price reduction: In each business, appropriate inventory control and utilization of short-term production were gen
Slide 11: Shimamura Business ①
Shimamura Business ① Strengthening product appeal ▽ Further enhancement of PB: PB ratio was 22.0%, sales for cumulative Q3 were 10.6% YoY. Sales of "PREMIUM" about 1.4 times. Rebranding of "FIBER HEAT": Expanded product lineup to practical items and wears. Sales of "SUPER” Series were favorable. ▽ F
Slide 12: Shimamura Business ②
Shimamura Business ② Strengthening sales power ▽ The Company's 70th anniversary campaign: Featuring various promotions, has significantly boosted customer attraction. Special prices are very effective under inflation. ▽ Various fairs and event exhibitions: Techniques for creating sales that are less
Slide 13: Avail Business
Avail Business Strengthening sales power and product appeal ▽ Strengthening trend proposals centered on JB: JB ratio was 43.6%, and sales for cumulative Q3 increased by 19.0% YoY. ▽ Strengthening line-robbing and planning capabilities: Favorable sales of products for teens, small-size products, and
Slide 14: Birthday Business
Birthday Business Strengthening sales power and product appeal ▽ Expanded product lineup in JB and PB: JB ratio was 27.4%, and sales for cumulative Q3 increased by 3.5% YoY. PB sales are about 1.5 times. JB: Character collaboration, fan meeting projects, high-price range products, PB: Sustainable ma
Slide 15: EC Business
EC Business Expand EC business and improve convenience ▽ Cumulative Q3 sales: 5.2 billion yen. Annual budget achieved. Capacity problems were also mitigated by direct delivery from suppliers to the transfer center. ▽ Strong effect for physical stores: 90% of in-store pickup rate and 40% of impulse b
Slide 16: Promotion of DX
Promotion of DX Utilize customer data and improve customer convenience ▽ Achieved 5 million app members: Optimize product mix and sales promotions based on customer purchase data. ▽ Improve convenience of the app: Currently, it is limited to an inventory search function that scans price tags with a
Slide 17: Capital Expenditures (Store Openings)
Capital Expenditures (Store Openings) Promote the development of highly profitable stores *FM：Abbreviation for Fashion Mall ▽ Restructuring of dominant store openings (Komatsu City, Ishikawa Prefecture and surrounding areas) 4 existing Shimamura stores ⇒ Existing stores: 2 + Relocation: 1 + format c
Slide 18: Capital Expenditures (Renovations)
Capital Expenditures (Renovations) Improve store loyalty by remodeling existing stores ▽ Major renovations: [Outside of the store] External walls, signage, parking lots. [In-store] Walls, lights, and air conditioners. Sales from renovation: “Shimamura Kosugi Store”: Sales up 11.9% YoY. “Shimamura Ta
Slide 19: Consolidated Business Forecasts for FY2/24
Consolidated Business Forecasts for FY2/24 ▽ Net sales: 635 billion yen (up 3.1% YoY), Operating income: 54.5 billion yen (up 2.4% YoY) ▽ Dividend per share: Annual dividend is expected to be 270 yen (up 10 yen). ▽ We will also appropriately respond to anticipated external risks and aim to achieve o
Slide 20: Stock Splits and Changes to the Shareholder Benefit Plan
Stock Splits and Changes to the Shareholder Benefit Plan ▽ Purpose of the stock split By lowering the amount per investment unit, we aim to create a more investment-friendly environment, improve the liquidity of the shares, and expand its investor base. ▽ Outline of stock split ① Splits of division
Slide 21: Information Disclosure
Information Disclosure Financial Results Materials (Disclosed on the corporate website) ▽ Financial Results Briefing Materials (with comments): December 25 (Monday) ▽ Summary of Financial Results (English version): December 26 (Tuesday) ▽ Financial Results (Summary of Question and Answer Session): D
Slide 22: 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