January

The apparel market in January was generally sluggish due to New Year's sales campaigns at department stores lacking momentum and the impact of widespread voluntary travel restrictions by Chinese tourists, leading to a decline in inbound consumption.

In our company, while markdown sales fell short of the previous year due to frequent stockouts of popular coats and outerwear, full-priced sales started smoothly, surpassing the previous year's performance by actively introducing early-spring and spring merchandise. However, this was not enough to offset the slump in the clearance sales, resulting in total sales significantly below the previous year.

By sales channel, department stores fell below the previous year due to the significant impact of poor New Year's sales, while e-commerce (EC) and outlet stores performed steadily, exceeding the previous year's results.

As a consequence of the above, physical stores such as department stores, directly managed stores, and outlets were at 91% of the previous year, EC sales were at 101%, and total company sales were at 93% 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.

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.