Financial Highlights
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 |