Supplementary Materials on Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022
GEO HOLDINGS CORPORATION (2681) | February 10, 2022 |
Contents
- Summary of this third quarter
- Consolidated Results for Nine Months Ended December 31, 2021
- Modifications in the Earnings Forecast
- Our Emphasis towards Growth
- Group Profile
- Appendix
GEO HOLDINGS CORPORATION | 2 |
Summary of this third quarter
Topics for this third quarter
- 2nd STREET (Japan): we opened 19 new stores during the three months ended December 31, 2021 where we opened a total of 46 new stores during nine months ended December 31, 2021.
- 2nd STREET (Overseas): we opened one new store in the USA and two new stores respectively in Taiwan and Malaysia during the three months ended December 31, 2021.
Highlights for this third quarter
- Although this Christmas and year-end shopping season was tough compared to previous years due to shortage in supply of game device and lack of major titles in game software, sales increased (100.7% compared to the same period of the previous year) from increase in sales for reuse (comprehensive) merchandise* waiving aside the effect of reduced earnings from the application of the Accounting Standard on Revenue Recognition.
- Operating profit increased to 5.66 billion yen (127.0% compared to the same period of the previous year) from gross profit of 97.1 billion yen (102.3% compared to the same period of the previous year) despite of increase in advertising expenses and rent from opening new stores.
- Sales for reuse (comprehensive) merchandise significantly increased from the same period of the previous year by 143.9% due to sales remaining strong for Okura's wholesale of mainly luxury watches to overseas, recovery of sales for 2nd STREET (Japan) accompanying the air of relaxation in voluntary restraint from going out to prevent infection of COVID-19, and from contribution from opening new stores for 2nd STREET (Japan).
*Note: From the second quarter of this fiscal year, we changed the English term of "reuse (non-media)" merchandise to "reuse (comprehensive)" merchandise to clarify that "reuse (comprehensive)" merchandise comprehensively includes reuse merchandise other than "reuse (media)" merchandise.
GEO HOLDINGS CORPORATION | 3 |
Consolidated Results for Nine Months Ended December 31, 2021
GEO HOLDINGS CORPORATION | 4 |
- Income statement for nine months
Sales and operating profit recovered due to recovery in sales for reuse (comprehensive) merchandise.
2021/3 | 2022/3 | Change | Increase/ | |
3Q Results | 3Q Results | decrease | ||
(Millions of yen) | ||||
Net sales | 243,396 | 244,991 | 100.7% | 1,594 |
Gross profit | 94,945 | 97,152 | 102.3% | 2,207 |
(Gross profit ratio) | 39.0% | 39.7% | ||
SG&A | 90,487 | 91,490 | 101.1% | 1,003 |
Operating profit | 4,457 | 5,661 | 127.0% | 1,203 |
(Operating profit ratio) | 1.8% | 2.3% | ||
Ordinary profit | 4,774 | 6,643 | 139.2% | 1,869 |
Profit | 1,018 | 4,308 | 422.9% | 3,289 |
※Accounting Standard for Revenue Recognition was applied from the first quarter of this fiscal year. However, the amount of net sales for the previous third quarter is calculated based on a different calculation method.
※Profit is profit attributable to owners of parent.
GEO HOLDINGS CORPORATION | 5 |
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