May

This month's apparel market saw a significant decrease in inbound demand due to the appreciation of the yen and the penetration of price adjustments, resulting in high-priced products, particularly luxury brands, struggling. Similarly, the general apparel market remained stagnant with department store sales falling below the previous year for three consecutive months due to a decline in consumer sentiment caused by rising prices and heightened uncertainty about the outlook for political and economic conditions.

We also experienced extremely difficult progress in full-priced sales, partly due to the decline in customer traffic at department stores, our main sales channel, and the continued low-temperature days in the early and late parts of the month, delaying the full-scale operation of light clothing such as jersey tops and shirts. On the other hand, sales at e-commerce (EC) and outlet stores were steady, exceeding the previous year's level.

As a consequence of the above, the monthly total sales of department stores, directly managed stores, outlet stores, and other brick-and-mortar stores in May was 94% compared to the previous year, while EC sales were 114%, exceeding the previous year's figures. However, the company's overall sales were 97% compared to the previous year.

Year-on-year Change in Retail Sales

• Corporate brands include SANYOCOAT, S.ESSENTIALS, Sanyo Yamacho and ECOALF.
• Womenswear includes AMACA, EVEX by KRIZIA, TO BE CHIC and TRANS WORK.

Number of Stores

• Number of shop-in-shops for department stores. Directly managed stores incude shops in department stores based on lease agreement and Marui.