In the first quarter of the current fiscal year, the Japanese economy continued to recover at a moderate pace despite the negative effect of the April 2014 consumption tax hike. The economy is benefiting from strong personal consumption, a sound employment situation and other factors. However, the operating environment in Japan’s fashion industry is uncertain because of changes in life styles, the shrinking market for business suits, concerns about higher costs and other events.
In this environment, the AOKI Group implemented various measures in each business segment as discussed below. Sales increased 5.1% year-on-year to 43,870 million yen but operating profit decreased 30.0% to 2,121 million yen due in part to the falloff in the Fashion Business following the rush to make purchases prior to the April 2014 consumption tax hike. Ordinary income decreased 35.4% to 2,135 million yen and net income decreased 12.7% to 1,565 million yen.
Results of operations in the first quarter under review were below initial estimates as sales and segment profit (operating income) in the Fashion Business were impacted by the more-than-expected falloff in demand following the surge in buying in the period leading up to the consumption tax rate hike. However, we have not revised the earnings forecasts that we released on May 9, 2014.
Consolidated Financial Results for the First Quarter of the Fiscal Year
Ending March 31, 2015, summarized below. Complete details are available
Note: The original disclosure in Japanese was released on August 7, 2014 at 15:30 (GMT +9).
As a corporate group that continues to break the mold and innovate, the AOKI Group has worked to meet the needs of customers in a variety of life scenes. This has led to our expansion into new markets, including the bridal and entertainment businesses.