Financial Highlights

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

Consolidated balance sheet (summary)as of March 31, 2017

Inventory efficiency improvement

The balance of inventory as of March 31, 2017 was 9.4% higher than the end of March 2016. On this basis, the rate of inventory growth exceeded growth in sales. Inventory growth breaks down mainly to fall/winter 2016 items and spring/summer 2017 items, so the impact of efforts mainly to reduce inventories on earnings for the fiscal year ending in March 31, 2018 is expected to be minor. In the fiscal year ending March 31, 2018, the Company has identified improving inventory efficiency as a priority issue. To this end, the Company will increase the finished quality of each product by reducing the number of product items and flexibly undertake additional production of top-selling items while controlling the volume of inventory introduced at the beginning of the season.

The Company’s accounts receivable—other

The balance of accounts receivable that include current assets stood at ¥10.1 billion as of March 31, 2017, up 3.7% compared with the balance as of the end of March 2016. The Company’s accounts receivable—other primarily consists of two categories: items related to store openings at commercial facilities and credit card companies. After settling operating overhead expenses, money from sales in each category are received by the Company in an approximately 15-day cycle, making these a very safe form of credit.

Background behind rises in short- and long-term loans

The balance of short- and long-term loans payable stood at ¥13.7 billion, up 124.4% compared with the balance as of the end of March, 2016, mainly due to purchasing treasury stock.

Purchases of treasury stock

The Company purchased treasury stock, amounting to 1,890,700 shares (6.3% of issued common shares) or approximately ¥6 billion between November 2016 and March 2017 in an effort to improve capital efficiency as well as undertake flexible capital policies able to address changes in the operating environment.

millions of yen %
2016
(as of March 31,
2016)
2017
(as of March 31,
2017)
YoY
Assets
     
Current assets
42,367 45,152 106.6
  Inventry
23,966 26,210 109.4
Noncurrent assets
21,510 22,646 105.3
Total tangible noncurrent assets
9,658 10,209 105.7
Total intangible assets
1,850 1,965 106.2
Total investments and other assets
10,001 10,471 104.7
Total assets
63,877 67,799 106.1
Liabilities
     
Current liabilities
24,964 29,805 119.4
Noncurrent liabilities
5,152 7,012 136.1
Total liabilities
30,117 36,818 122.2
Net assets
     
Capital stock
3,030 3,030 100.0
Capital surplus
4,095 4,128 100.8
Retained earnings
26,712 29,515 110.5
Treasury stock
(0) (6,000)
Shareholders’ equity
33,838 30,673 90.6
Accumulated other comprehensive income
(82) (42) 51.4
Total net assets
33,760 30,980 91.8
Total assets
63,877 67,799 106.1