February 7, 2025 | ||
Summary of Consolidated Financial Results | ||
for the Third Quarter of the Fiscal Year Ending March 31, 2025 | ||
(Nine Months Ended December 31, 2024) | ||
[Japanese GAAP] | ||
Company name: | AOKI Holdings Inc. | Listings: Tokyo Stock Exchange |
Stock code: | 8214 | URL: https://www.aoki-hd.co.jp/ |
Representative: | Haruo Tamura, President | |
Contact: | Satoshi Eguchi, General Manager of IR Office | Tel: +81-45-941-1388 |
Scheduled date of payment of dividend: | - |
Preparation of supplementary materials for financial results: | Yes |
Holding of financial results meeting: | None |
Note: The original disclosure in Japanese was released on February 7, 2025 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 - December 31, 2024)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||||
owners of parent | |||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||||||
Nine months ended Dec. 31, 2024 | 129,427 | 2.7 | 7,514 | 9.0 | 6,909 | 3.6 | 4,593 | 20.2 | |||||||||||||
Nine months ended Dec. 31, 2023 | 126,015 | 5.8 | 6,896 | 56.5 | 6,667 | 72.6 | 3,822 | 99.6 | |||||||||||||
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2024: | 3,983 | (up 9.9%) | |||||||||||||||||||
Nine months ended Dec. 31, 2023: | 3,625 | (up 75.7%) | |||||||||||||||||||
Net income per | Diluted net income | ||||||||||||||||||||
share | per share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
Nine months ended Dec. 31, 2024 | 54.65 | - | |||||||||||||||||||
Nine months ended Dec. 31, 2023 | 45.42 | - | |||||||||||||||||||
(2) Consolidated financial position | |||||||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||||||
Million yen | Million yen | % | |||||||||||||||||||
As of Dec. 31, 2024 | 218,372 | 136,772 | 62.5 | ||||||||||||||||||
As of Mar. 31, 2024 | 236,327 | 137,056 | 57.9 | ||||||||||||||||||
Reference: Shareholders' equity (million yen) | As of Dec. 31, 2024: 136,467 | As of Mar. 31, 2024: 136,757 | |||||||||||||||||||
2. Dividends | |||||||||||||||||||||
Dividend per share | |||||||||||||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||
FY3/24 | - | 13.00 | - | 37.00 | 50.00 | ||||||||||||||||
FY3/25 | - | 15.00 | - | ||||||||||||||||||
FY3/25 (forecasts) | 40.00 | 55.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 191,800 | 2.2 | 15,000 | 8.2 | 14,300 | 8.0 | 8,000 | 5.6 | 95.16 |
Note: Revisions to the most recently announced consolidated forecast: None
* Notes
- Significant changes in the scope of consolidation during the period: None
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
Note: Please refer to "Changes in Accounting Policies" on page 8 of the attachments for further information.
(4) Number of shares outstanding (common shares)
1) | Number of shares outstanding (including treasury shares) at the end of the period | |||
As of Dec. 31, 2024: | 86,649,504 shares | As of Mar. 31, 2024: | 86,649,504 shares | |
2) | Number of treasury shares at the end of the period | |||
As of Dec. 31, 2024: | 2,551,659 shares | As of Mar. 31, 2024: | 2,626,986 shares | |
3) Average number of shares outstanding during the period | ||||
Nine months ended Dec. 31, 2024: | 84,060,121 shares | Nine months ended Dec. 31, 2023: | 84,159,986 shares |
Note 1: Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: None
Note 2: Cautionary statement with respect to forecasts and other matters Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for the forecast shown above.
Supplementary materials for financial results
Supplementary materials for financial results for the first nine months are disclosed on TDnet on Friday, February 7, 2025 and posted on the Company's website.
AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025 | ||
Contents of Attachments | ||
Pages | ||
1. Overview of Results of Operations, etc. | 2 | |
(1) | Results of Operations | 2 |
(2) Financial Position | 3 | |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statement of Income and | |
Quarterly Consolidated Statement of Comprehensive Income | 6 | |
Quarterly Consolidated Statement of Income | 6 | |
Quarterly Consolidated Statement of Comprehensive Income | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Changes in Accounting Policies | 8 | |
Segment Information | 8 | |
Significant Changes in Shareholders' Equity | 9 | |
Going Concern Assumption | 9 | |
Notes to Quarterly Consolidated Statement of Cash Flows | 9 | |
Subsequent Events | 10 |
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
1. Overview of Results of Operations, etc.
(1) Results of Operations
In the first nine months of the current fiscal year, there was a recovery of the Japanese economy at a moderate pace backed by firm consumer spending as corporate earnings increased and the labor market and personal income improved. The outlook for the economy is still uncertain because of inflation caused by the consistently high cost of energy and raw materials due to turmoil in many areas of the world and the yen's depreciation.
Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings increased in the first nine months. Net sales increased 2.7% from one year earlier to 129,427 million yen, operating profit increased 9.0% to 7,514 million yen, ordinary profit increased 3.6% to 6,909 million yen, and profit attributable to owners of parent increased 20.2% to 4,593 million yen.
Business segment performance was as follows.
Fashion Business
At AOKI stores, sales of Quick Order Suits were expanded to all stores. These suits allow customers who require different jacket and trouser sizes to purchase ready-made suits with a personalized order format. Offering this service further strengthened the ability of AOKI stores to provide suits that precisely match customers ' needs. For women, AOKI stores began the full-scale launch of the new MeWORK brand used for apparel for working women. More products for this brand will be created and product lineups enlarged to raise awareness of MeWORK and increase its market share. ORIHICA increased activities for expanding its lineup of business casual fashions and creating new ideas for apparel styles. For example, ORIHICA stores started selling the "Office Down" line of light down vests and jackets that can easily adapt to big changes in temperature during a single day and are designed for mixing and matching. One AOKI store was opened, which was a relocation of an existing store. ORIHICA added nine stores, including stores in areas where this company had no stores. To improve efficiency and relocate stores, two AOKI stores and one ORIHICA store were closed. As a result, the number of stores increased from 593 at the end of the previous fiscal year to 600 at the end of the third quarter.
As a result of these activities and strong sales of casual apparel, existing store sales increased. However, there were expenses for more advertising and other measures to bring in customers and personnel expenses were higher. Sales in this segment increased 1.9% year on year to 61,926 million yen and operating profit decreased 40.9% to 983 million yen.
Entertainment Business
KAIKATSU CLUB café complexes are continuing to add private rooms with locks and meeting the increasing demand for indoor amusement activities by adding activities like darts and replacing amusement facilities with the latest models. Cafés are also making food and beverage menus more appealing, such as by adding a Kin -no Potato item and offering Yaki-Curry & Winter Udon for a limited time. COTE D'AZUR karaoke facilities upgraded and expanded menu selections with measures that include a new party package. The re were also activities for hosting banquets, parties and other events. In addition, COTE D'AZUR is increasing activities to attract more customers by distributing a variety of coupons. At FiT24, which operates 24-hour self-service fitness centers, there were many activities to attract new members. Two examples are events for the trial use of facilities at no charge and the upgrading of the U-22 Plan for people between the ages of 18 and 22. During the first nine months, KAIKATSU CLUB opened ten cafés and FiT24 fitness opened two centers, while six KAIKATSU CLUB cafés, five COTE D'AZUR karaoke facilities and two FiT24 fitness centers were closed due to measures to improve efficiency. As a result, including the 82 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 49 franchised stores), the number of locations in this business decreased from 784 at the end of the previous fiscal year to 773 at the end of the third quarter.
Segment sales and earnings increased as these measures generated firm sales at existing locations. Sales in this segment increased 1.6% to 57,516 million yen and operating profit increased 15.1% to 5,679 million yen.
Anniversaire and Bridal Business
This business continued to increase measures for receiving new orders, including special events for attracting
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
customers. Another priority is the sharing among all locations of measures used at successful Anniversaire facilities. The aim is to further increase customer interaction skills for raising the percentage of customer meetings that result in firm orders and increasing sales per wedding. ANNIVERSAIRE Omotesando held an event called ANNIVERSAIRE Christmas 2024 with holiday season activities that included the sale of marriage proposal packages only for the Christmas season and the addition of special menu items at this location 's ANNIVERSAIRE Café.
As a result of these activities, sales increased 13.9% to 8,365 million yen and operating profit was 327 m illion yen compared with a loss of 5 million yen one year earlier. Performance in the first nine months was supported by the operations of ANNIVERSAIRE Omotesando, which was closed until the middle of September in 2023, resulting in an increase in the number of weddings.
Real Estate Leasing Business
Segment sales increased 17.0% to 5,119 million yen and operating profit increased 36.8% to 1,187 million yen mainly because of the leasing of properties to tenants outside the AOKI Group in the previous fiscal year.
- Financial Position Balance sheet position
Assets
Total assets at the end of the third quarter decreased 17,954 million yen from the end of the previous fiscal year to 218,372 million yen primarily because of seasonal and other factors.
Current assets decreased 15,403 million yen mainly due to decreases of 10,123 million yen in cash and deposits and 7,282 million yen in accounts receivable-trade caused by seasonal and other factors, while there was an increase of 2,345 million yen in inventories resulting from an increase in procurement . Non-current assets decreased 2,550 million yen mainly due to a decrease of 2,704 million yen in other investment and other assets including deferred tax assets.
Liabilities
Current liabilities decreased 8,966 million yen from the end of the previous fiscal year. There were decreases of 4,669 million yen in accounts payable-trade due to seasonal and other factors, 1,836 million yen in accrued income taxes due to the payment of income taxes and 2,885 million yen in provision for bonuses due to the payment of bonuses, while there were proceeds from short-term borrowings of 3,000 million yen. Non-current liabilities decreased 8,704 million yen due to a decrease of 8,343 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets decreased 283 million yen from the end of the previous fiscal year. There was a decrease of 551 million yen in valuation difference on available-for-sale securities due to sales of investment securities. Retained earnings increased 223 million yen due to a profit attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
During the first nine months, warm weather in October had a negative effect on some operations of the Fashion Business and sales and earnings of all other businesses were generally firm. After three quarters, sales are generally consistent with the fiscal year forecast and earnings are slightly ahead of the pace needed to reach the forecast.
There are no revisions to the fiscal year forecast for sales and earnings that was announced on November 8, 2024. The increase in prices of raw materials and other items is slowing down. However, there may be a significant change in sales and earnings due to the effects of inflation on consumer spending and the level of sales in some market categories of the Fashion Business in the fourth quarter, such as the "freshers" category of apparel for young people starting college or their first jobs.
In addition, the event explained in the Subsequent Events section on page 10 may affect the fiscal year forecast.
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
2. Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheet
(Millions of yen) | |||
FY3/24 | Third quarter of FY3/25 | ||
(As of Mar. 31, 2024) | (As of Dec. 31, 2024) | ||
Assets | |||
Current assets | |||
Cash and deposits | 35,657 | 25,533 | |
Accounts receivable-trade | 15,442 | 8,160 | |
Inventories | 22,247 | 24,592 | |
Other | 8,496 | 8,158 | |
Allowance for doubtful accounts | (42) | (48) | |
Total current assets | 81,800 | 66,396 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 64,406 | 64,860 | |
Land | 30,693 | 30,424 | |
Other, net | 15,941 | 16,269 | |
Total property, plant and equipment | 111,042 | 111,554 | |
Intangible assets | 6,771 | 6,563 | |
Investments and other assets | |||
Guarantee deposits | 6,446 | 6,251 | |
Leasehold deposit | 18,873 | 18,919 | |
Other | 11,446 | 8,741 | |
Allowance for doubtful accounts | (52) | (54) | |
Total investments and other assets | 36,713 | 33,858 | |
Total non-current assets | 154,526 | 151,976 | |
Total assets | 236,327 | 218,372 | |
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
(Millions of yen) | |||
FY3/24 | Third quarter of FY3/25 | ||
(As of Mar. 31, 2024) | (As of Dec. 31, 2024) | ||
Liabilities | |||
Current liabilities | |||
Accounts payable-trade | 18,713 | 14,043 | |
Short-term borrowings | - | 3,000 | |
Current portion of long-term borrowings | 9,842 | 9,656 | |
Income taxes payable | 2,106 | 269 | |
Provision for bonuses | 3,790 | 904 | |
Provision for bonuses for directors (and other officers) | 240 | 118 | |
Other | 17,165 | 14,899 | |
Total current liabilities | 51,857 | 42,891 | |
Non-current liabilities | |||
Long-term borrowings | 32,687 | 24,343 | |
Retirement benefit liability | 607 | 584 | |
Asset retirement obligations | 7,914 | 7,907 | |
Other | 6,203 | 5,873 | |
Total non-current liabilities | 47,412 | 38,708 | |
Total liabilities | 99,270 | 81,600 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 23,282 | 23,282 | |
Capital surplus | 22,597 | 22,612 | |
Retained earnings | 92,813 | 93,036 | |
Treasury shares | (3,047) | (2,959) | |
Total shareholders' equity | 135,645 | 135,971 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 741 | 190 | |
Remeasurements of defined benefit plans | 369 | 304 | |
Total accumulated other comprehensive income | 1,111 | 495 | |
Non-controlling interests | 299 | 305 | |
Total net assets | 137,056 | 136,772 | |
Total liabilities and net assets | 236,327 | 218,372 | |
5
AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
- Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
(For the Nine-month Period)
(Millions of yen) | |||
First nine months of FY3/24 | First nine months of FY3/25 | ||
(Apr. 1, 2023 - Dec. 31, 2023) | (Apr. 1, 2024 - Dec. 31, 2024) | ||
Net sales | 126,015 | 129,427 | |
Cost of sales | 76,218 | 77,110 | |
Gross profit | 49,797 | 52,316 | |
Selling, general and administrative expenses | 42,900 | 44,801 | |
Operating profit | 6,896 | 7,514 | |
Non-operating profit | |||
Interest income | 49 | 56 | |
Dividend income | 23 | 20 | |
Other | 152 | 134 | |
Total non-operating profit | 225 | 211 | |
Non-operating expenses | |||
Interest expenses | 218 | 207 | |
Loss on retirement of non-current assets | 40 | 141 | |
Loss on cancellation of guarantee and leasehold | 6 | 159 | |
deposits | |||
Other | 189 | 308 | |
Total non-operating expenses | 454 | 817 | |
Ordinary profit | 6,667 | 6,909 | |
Extraordinary income | |||
Gain on sale of non-current assets | - | 184 | |
Gain on sale of investment securities | 48 | 563 | |
Compensation for expropriation | - | 165 | |
Settlements received | 500 | - | |
Total extraordinary income | 548 | 913 | |
Extraordinary losses | |||
Loss (gain) on sale of non-current assets | - | 19 | |
Impairment loss | 741 | 992 | |
Total extraordinary losses | 741 | 1,012 | |
Profit before income taxes | 6,474 | 6,810 | |
Income taxes - current | 1,254 | 852 | |
Income taxes - deferred | 1,422 | 1,357 | |
Total income taxes | 2,676 | 2,210 | |
Profit | 3,797 | 4,600 | |
Profit (loss) attributable to non-controlling interests | (24) | 6 | |
Profit attributable to owners of parent | 3,822 | 4,593 | |
6
AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
Quarterly Consolidated Statement of Comprehensive Income
(For the Nine-month Period)
(Millions of yen) | ||
First nine months of FY3/24 | First nine months of FY3/25 | |
(Apr. 1, 2023 - Dec. 31, 2023) | (Apr. 1, 2024 - Dec. 31, 2024) | |
Profit | 3,797 | 4,600 |
Other comprehensive income | ||
Valuation difference on available-for-sale | (118) | (551) |
securities | ||
Remeasurements of defined benefit plans, net of | (53) | (64) |
tax | ||
Total other comprehensive income | (171) | (616) |
Comprehensive income | 3,625 | 3,983 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of | 3,650 | 3,977 |
parent | ||
Comprehensive income attributable to non- | (24) | 6 |
controlling interests | ||
7
AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2025
- Notes to Quarterly Consolidated Financial Statements Changes in Accounting Policies
The Company has applied the Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022; the "Revised Accounting Standard 2022") from the beginning of the first nine months of the fiscal year ending March 31, 2025.
Revisions concerning the accounting classification of income taxes (taxation of other comprehensive income) are made in accordance with the transitional treatment stipulated in the proviso of Paragraph 20-3 of the Revised Accounting Standard 2022 and in the proviso of Paragraph 65-2, Item 2 of Implementation Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022).
There is no effect of the application of this standard on the quarterly consolidated financial statements.
Segment Information
First nine months of FY3/24 (Apr. 1, 2023 - Dec. 31, 2023)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
(Millions of yen) | ||||||||||
Reportable segment | Amounts | |||||||||
shown on | ||||||||||
Real | Others | Adjustment | quarterly | |||||||
Anniversaire | Total | consolidated | ||||||||
Fashion | Entertainment | Estate | Subtotal | (Note 1) | (Note 2) | |||||
statement of | ||||||||||
and Bridal | Leasing | |||||||||
income | ||||||||||
(Note 3) | ||||||||||
Net sales | ||||||||||
Fashion | 60,765 | - | - | - | 60,765 | - | 60,765 | - | 60,765 | |
Café complex | - | 44,133 | - | - | 44,133 | - | 44,133 | - | 44,133 | |
Karaoke | - | 7,792 | - | - | 7,792 | - | 7,792 | - | 7,792 | |
Fitness | - | 3,934 | - | - | 3,934 | - | 3,934 | - | 3,934 | |
Bridal | - | - | 7,337 | - | 7,337 | - | 7,337 | - | 7,337 | |
Other | - | 666 | - | - | 666 | 46 | 713 | - | 713 | |
Revenue from | - | |||||||||
contracts with | 60,765 | 56,526 | 7,337 | - | 124,630 | 46 | 124,676 | 124,676 | ||
customers | ||||||||||
Other revenues | - | 56 | - | 1,281 | 1,338 | - | 1,338 | - | 1,338 | |
External sales | 60,765 | 56,583 | 7,337 | 1,281 | 125,968 | 46 | 126,015 | - | 126,015 | |
Inter-segment | ||||||||||
sales and | 2 | 10 | 3 | 3,095 | 3,111 | 48 | 3,159 | (3,159) | - | |
transfers | ||||||||||
Total | 60,768 | 56,593 | 7,341 | 4,376 | 129,079 | 95 | 129,174 | (3,159) | 126,015 | |
Segment profit | 1,665 | 4,933 | (5) | 868 | 7,462 | (4) | 7,457 | (561) | 6,896 | |
(loss) | ||||||||||
Notes: 1. The "others" classification is businesses not included in reportable segments such as advertising -related business.
- The -561 million yen adjustment to segment profit (loss) includes 3,035 million yen in elimination for inter- segment transactions and -3,597 million yen in company-wide costs that cannot be allocated to any specific reportable segments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportable segments.
- Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.
2. Information related to impairment losses on non -current assets, or goodwill, etc. for each reportable segment Material impairment losses related to non-current assets
In the Fashion Business and the Entertainment Business, impairment losses were recognized for operating stores set to be closed or converted, or expected to remain in the red, for which there is little expectation of recovery; impairment losses of 23 million yen and 717 million yen were booked respectively in the first nine months of FY3/24.
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