Financial Highlights

  • Net Sales and Earnings
  • Assets
  • Cash Flows
  • Earnings Forecast

Consolidated statements of income (summary)year ended March 31, 2017

Net sales up 3.3% year on year, the gross margin improved 0.2 of a percentage point year on year

Consolidated sales for the fiscal year under review increased 3.3% compared with the previous fiscal year, to ¥145.5 billion, mainly owing to Group company openings of new stores and online sales growth. The gross margin improved 0.2 of a percentage point compared with the previous fiscal year, to 51.0%. The rise in the gross margin was largely attributable to foreign exchange impacts. In the fiscal year ending March 31, 2018, the Company aims to increase revenue and improve the gross margin primarily by pursuing ongoing online sales growth and improving the ratio of regular price sales.

The ratio of SGA expenses to sales increased 1.7 percentage points year on year

The ratio of SGA expenses to sales increased 1.7 percentage points compared with the previous fiscal year to 44.7%. This increase largely reflects rises in personnel expenses required to fill vacant positions and review promotion rates, which had been curtailed, as well as large-scale store openings and higher advertising expenses for online sales.

Ordinary income decreased 15.7% year on year to ¥9.4 billion

Reflecting the aforementioned factors, ordinary income decreased 15.7% compared with the previous fiscal year to ¥9.4 billion but is slightly above the Company’s revised ordinary income target disclosed in October 2016 of ¥9.2 billion.

millions of yen %
2016
(April 1, 2015 –
March 31, 2016)
2017
(April 1, 2016 –
March 31, 2017)
YoY
Net sales
140,919 145,535 103.3
Cost of sales
69,345 71,379 102.9
Gross profit
71,573 74,155 103.6
Selling, general and administrative expenses
60,501 64,990 107.4
Operating income
11,071 9,165 82.8
Total non-operating income
226 367 162.1
Total non-operating expenses
122 112 91.5
Ordinary income
11,175 9,420 84.3
Total extraordinary income
64 0 0.4
Total extraordinary loss
789 1,366 173.0
Income before income taxes
10,450 8,054 77.1
Income taxes – current
3,885 3,401 87.5
Income taxes – deferred
75 (559)
Net income attributable to owners of parent
6,494 5,191 79.9

Trends in UNITED ARROWS LTD. Existing store sales

For the fiscal year ended March 31, 2017, existing retail and online store sales decreased 0.1% in the first half, increased 4.0% in the second half, and rose 2.0% in the full fiscal year compared with the corresponding periods of the previous fiscal year. Over the full fiscal year, the number of customers at existing retail store decreased 4.0%, while the average spending per customer at existing retail stores increased 1.9% compared with the previous fiscal year. Existing store sales slumped during the first half of the fiscal year under review primarily due to an inability to accurately respond to inclement weather particularly in late summer and early fall. In the second half, however, existing store sales recovered largely owing to releasing flexible products and creating sales spaces that spurred on customer purchases. The number of customers at existing stores decreased 4.0% year on year over the full fiscal year under review. However, as a reference, the number of customers at retail and online stores, which takes into account UNITED ARROWS LTD. ONLINE STORE and ZOZOTOWN (both of which enable the Company to ascertain the number of purchasing customers at UNITED ARROWS stores), rose 2.0% for the full fiscal year compared with the previous fiscal year.

*1 Average spending per customer and the number of customers are calculated based on existing retail store sales.