September

The apparel market for the month showed a general recovery trend. Despite the impact of the prolonged summer heat, autumn and winter items finally began to sell with the temperature drop in the latter half of the month, and inbound consumption, which had been sluggish, also recovered.

In our company, due to the impact of record-breaking hot weather, sales of autumn and winter items were sluggish, resulting in extremely challenging progress in full-priced sales across all channels, particularly department stores, which are our main distribution channels. Due to the slight easing of the intense heat in the final week, autumn and winter items started selling, but this was not enough to cover the struggle of the first half of the month. As a result, the September total fell sharply below the previous year. In terms of sales channels, while department stores and directly managed stores, which are full-priced distribution channels, fell sharply from the previous year, markdown sales at e-commerce (EC) were steady, resulting in a significant increase from the previous year.

As a consequence of the above, the monthly total sales of department stores, directly managed stores, outlets, and other brick-and-mortar stores in September were 88% of the previous year's level, EC sales were 122% of the previous year, and total company sales were 92% of the previous year's level.

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.

Year-on-year Change in Retail Sales

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