Announcement of Financial Results for the 2nd Quarter
Announcement of Financial Results for the 2nd Quarter
of the Fiscal Year Ending February 28, 2013 (FY2012)
of the Fiscal Year Ending February 28, 2013 (FY2012)
I. Summary of Financial Results for the 2nd Quarter of
I. Summary of Financial Results for the 2nd Quarter of
the Fiscal Year Ending February 28, 2013 (FY2012)
the Fiscal Year Ending February 28, 2013 (FY2012)
3
1. Consolidated Financial Highlights - Profit and Loss
Net Sales
90,534 million yen
(Y/Y 117.9%)
, Operating Income -1,076 million yen
(Compared with plan +623 million yen)
(Unit:millions of y en)
2nd Quarter Cumulative, FY2012 Previous FY *1 Plan *2 Results
Results % of Total Results(A)% of Total Results(B) % of Total Y Y a Y Y a
Net Sales 76,761 100.0% 94,000 100.0% 90,534 100.0% +13,773 117.9% -3,465 96.3%
Gross Profit 37,476 48.8% 46,298 51.1% +8,822 123.5%
SG&A Expenses 40,867 53.2% 47,374 52.3% +6,507 115.9%
Operating Income -3,391 -4.4% -1,700 -1.8% -1,076 -1.2% +2,315 ─ +623 ─
Ordinary Income -4,892 -6.4% -1,300 -1.4% -1,123 -1.2% +3,769 ─ +176 ─
Net Income (Qtr) -4,482 -5.8% -2,700 -2.9% -2,424 -2.7% +2,058 ─ +275 ─
*2: The financial results plan released on April 13, 2012
Net Sales: Massive increase of Y/Y 140.0% because companies that merged during the previous fiscal
year gave contributions through the full business year.
Gross Profit Ratio (Non-consolidated): Previous fiscal year: 32.2%
→
Current year: 37.3% (+5.0pt); due
to the reduction of BOY inventory and the improvement of the final sales rates at our regular stores.
Operating Income: Deficits were reduced due to contribution of subsidiaries’ profit.
2. Consolidated Financial Highlights - Group (2)
TOKYO STYLE Group
(Y/Y comparison alone/by subsidiary)
(Unit:millions of yen)
Alone Subsidiaries Elimination/
others Total Alone Y/Y Subsidiaries Y/Y
Elimination/
others Total Y/Y
Sales 12,962 16,508 -1,437 28,034 12,298 94.9% 31,911 193.3% -4,955 39,254 140.0%
Gross margin 4,177 8,367 -108 12,436 4,582 109.7% 14,934 178.5% -209 19,307 155.3%
Gross margin rate 32.2% 50.7% 44.4% 37.3% +5.0pt 46.8% -3.9pt 49.2% +4.8pt
SG&A 8,169 7,209 417 15,796 8,110 99.3% 12,476 173.1% 225 20,812 131.8%
SG&A rate 63.0% 43.7% 56.3% 65.9% +2.9pt 39.1% -4.6pt 53.0% -3.3pt
Operating income -3,992 1,158 -526 -3,360 -3,527 ─ 2,457 212.1% -434 -1,505 ─
Ordinary income -4,741 1,110 -878 -4,509 -3,224 ─ 2,234 201.3% -666 -1,655 ─
Current net income -5,958 507 -1,127 -6,577 -3,281 ─ 1,218 ─ -741 -2,804 ─
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SANEI INTERNATIONAL GROUP
Net Sales: Increased due to a higher revenue from the main brands and the aggressive openings of the
focus brand stores
Gross Profit Ratio: Increased thanks to a higher proportion of non-discount sales, improved cost-to-sales
ratio and reduced inventory valuation losses
Operating Income: Returned to profitability due to a higher gross profit ratio and reduced SG&A expenses
3. Consolidated Financial Highlights - Group (2)
(Unit:million of y en)
Previous FY * 2nd Quarter Cumulative, FY2012
Results % of Total Results % of Total Y/Y
Change Y/Y
Net Sales
48,733 100.0%
51,312 100.0%
+2,579 105.3%
Gross Profit
25,021
51.3%
27,001
52.6%
+1,980 107.9%
SG&A Expenses
25,025
51.4%
26,373
51.4%
+1,348 105.4%
Operating Income
-3
0.0%
628
1.2%
+632
─
Ordinary Income
-243
-0.5%
786
1.5%
+1,030
─
Net Income (Qtr)
-1,614
-3.3%
534
1.0%
+2,149
─
II. Progress of the Mid
II. Progress of the Mid
-
-
term Management Plan
term Management Plan
FY2011
(The previous FY)
“Structural reform without sanctuary”
“Structural reform without sanctuary”
Sales: 147.8
Operating income: -6.9
Operating income rate
: -4.6%
Sales: 220
Operating income: 5
Operating income rate
: 2.3
％
Results from
The previous year
“
Continuous growth”
“
Continuous growth”
“Improving profitability”
FY2012
(The present FY)
FY2013
FY2014
Target 2.
Achieve the Mid-term
Management plan
Sales:188
Operating income: -0.5
Operating income rate
:
-0.3%
[Results]
[Forecasts]
[the Mid-term management plan]
“Strengthening group management capabilities”
Target 1.
Return to
Profitable sales
“Reforming cost structure”
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4. A general Schedule of the Mid-term Management plan
5. Core Strategies of the Mid-term Management Plan (1)
Close 297 unprofitable stores of TOKYO STYLE.
Structural reform without sanctuary
Structural reform without sanctuary
(1) Reforming cost structure
1) Close low-yielder/unprofitable stores
3) Increase of Gross Profit
Close four brands of TOKYO STYLE.
2) Withdraw from unprofitable business.
Reconsider the planning and production system of the TOKYO STYLE brand.
→ Reduce advanced plans and increase the interim planning ratio.
As for the low-yielding brands of the group, a restructure plan is to be made in which the withdrawal of the brands is to be studied. →Investment is to be concentrated on growing brands.
4) Effects of the drastic improvement of the SG&A expenses ratio
The organizational structure of TOKYO STYLE was changed from a four-division structure to a two-division structure
.
→
Focus resources on the main businessReduced items FY2012 (The pres ent FY) FY2013 and later
Clos e withdrawn brand's s tores and unprofitable stores Pers onnel cos ts -814 -1,953
Staffing structure streamlining due to downsizing Pers onnel cos ts -89 -293 Perf orm a part of the outsourced activities of logistics in-house. Logis tics cos ts -40 -112
Reduce advertising expenses Adv ertising expenses -400 -600
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6. Core Strategies of the Mid-term Management Plan (2)
(2) Improving profitability
Consolidate HR, accounting, administration, and system divisions that TOKYO STYLE and SANEI INTERNATIONAL have separately into the Administrative Headquarters of TSI HOLDINGS.
Consolidate the production and logistics divisions of TOKYO STYLE and SANEI
INTERNATIONAL into TSI HOLDINGS subsidiary, TSI Production Network.→Unification of management functions
Establish the Store Development Dept. and Web Business Strategy Preparation Office within the Business Headquarters of TSI HOLDINGS →Consolidate the functions of TOKYO STYLE and SANEI INTERNATIONAL together.
(3)Strengthening group management capabilities
Structural reform without sanctuary
Structural reform without sanctuary
M&A of 5 companies in FY 2011 financial results in the full business year from FY2012.→These companies give contributions to the consolidated Start "Planet Blue" from spring/summer 2013, which is a store business for casual-style fashion.
1) Development of new business
Aggressive investments on large-market brands such as "nano・universe,” “NATURAL BEAUTY BASIC,” etc.
Continue to sell investment securities and unused assets aggressively, and secure the funds for pursuing the Company’s growth strategy for its core business at an accelerated pace while using the funds for repaying debt.
2) Expansion of core brands
3) Effective utilization of assets
III. Forecast for FY2012
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7. Consolidated business plan for 2013 ending February
Net Sales was revised downward / Income was unchanged
Net Sales: Revised the full year net sales plan as the first half sales fell short of expectations and the
second half sales estimate was modified.
Operating Income: Although the first half operating income exceeded expectations, the second half plan
was modified, so the full year forecast was unchanged.
(Unit:millions of yen)
2013 ending February: Plan
2 a y a
Original plan(A1) Rev ised plan(B2) Diff.(A1)-(B1) Ratio(A1)/(B1) Original plan(A2) Rev ised plan(B2) Diff.(A2)-(B2) Ratio(A2)/(B2)
a
103,000
97,465
-5,534
94.6%
197,000
188,000
-9,000
95.4%
a I
1,200
576
-623
─
-500
-500
±0
─
a y I
1,300
1,123
-176
─
0
0
±0
─
I
1,100
824
-275
─
-1,600
-1,600
±0
─
8. Performance plan by group for 2013 ending February
TOKYO STYLE Group: Although sales are anticipated to decline, the full year income is likely to be in line with the original plan thanks to higher subsidiary income.
SANEI INTERNATIONAL Group: The second half plan was revised in view of the current situation. Still, as the first half income exceeded expectations, the full year income is expected to be more or less in line with the original plan.
( )TOKYO STYLE Group
(Unit:millions of yen)2013 ending February: Plan
2nd half Throughout the year
Original plan(A1)Revised plan(B2) Diff.(A1)-(B1) Ratio(A1)/(B1) Original plan(A2)Revised plan(B2) Diff.(A2)-(B2) Ratio(A2)/(B2) Sales 45,776 43,345 -2,430 94.7% 84,863 82,599 -2,263 97.3%
Operating income -131 -227 -96 ─ -1,764 -1,732 +31 ─
Ordinary income -163 269 +432 ─ -1,502 -1,386 +115 ─
Current net income -1,924 -1,160 +763 ─ -4,204 -3,965 +238 ─
( )SANEI INTERNATIONAL Group
(Unit:millions of yen)2013 ending February: Plan
2nd half Throughout the year
Original plan(A1)Revised plan(B2) Diff.(A1)-(B1) Ratio(A1)/(B1) Original plan(A2)Revised plan(B2) Diff.(A2)-(B2) Ratio(A2)/(B2) Sales 57,715 54,366 -3,348 94.2% 113,071 105,679 -7,391 93.5%
Operating income 1,346 758 -587 56.3% 1,294 1,386 +92 107.1%
Ordinary income 1,421 808 -612 56.9% 1,503 1,595 +91 106.1%
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IV. Reference Data
9. Net Sales per Brand
(Unit:millions of yen)
Brand Name
FY2012 2nd Quarter
Cumulative
% a Y Y
1 nano
・
universe
8,281
9.1%
139.8%
2 NATURAL BEAUTY BASIC
7,022
7.8%
107.8%
3 ROSE BUD
4,266
4.7%
─
4 MARGARET HOWELL
4,213
4.7%
111.7%
5 kate spade new york
3,069
3.4%
123.6%
6 Apuweiser-riche
3,062
3.4%
─
7 FREE'S SHOP
2,855
3.2%
97.9%
8 & by P&D
2,850
3.1%
107.0%
9 HUMAN WOMAN
2,819
3.1%
99.1%
10 PEARLY GATES
2,413
2.7%
113.5%
49,680
54.8%
─
合計
90,534
100.0%
─
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10. Net Sales per Sales Channel
(Unit:millions of yen)
TOKYO STYLE GROUP
SANEI INTER NATIONAL
GROUP Consolidated
Sales Channel
Results % of Total Results % of Total Results % of TotalDepartment store
15,054 38.4%
15,264 29.7%
─
30,318
33.5%
14,131 36.0%
27,512 53.6%
─
41,643
46.0%
EC
4,210 10.7%
2,024
3.9%
─
6,234
6.9%
Overseas
2,285
5.8%
1,546
3.0%
─
3,831
4.2%
Others
*23,574
9.1%
4,964
9.8%
-32
8,506
9.4%
Total
39,254 100.0%
51,312 100.0%
-32
90,534 100.0%
TSI(Non-consolidated)
Eliminations
Commercial facilities*1
*1 Commercial facilities: Fashion buildings, railroad station buildings, individual stores, outlet shops, etc., except for department stores
