Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2018
August,2017
KOMEHYO Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
Phone +81-52-249-5366

Overview of Income Statement
ConsolidatedChange

YoY

FY2017 1Q

FY2018 1Q

Net sales

9,153

9,849+696

107.6％

Gross profit

2,539

2,940+401

115.8％

Gross profit margin

27.7%

29.9%+2.2pt－

SG&A expenses

2,595

2,767+171

106.6％

Operating income△55173+229－

Ordinary income△68185+254－

Net income attributableto owners of parent△58100+158－(Millions of yen)1

Overview of Income Statement
Non-consolidated

ChangeYoY

FY2017 1Q

FY2018 1Q

Net sales

8,052

8,673+621

107.7％

Gross profit

2,154

2,499+344

116.0％

Gross profit margin

26.8%

28.8%

+2.0pt－SG&A expenses

2,225

2,401+176

107.9％

Operating income△7097+168－

Ordinary income△77226+304－

Net income△57168+226－(Millions of yen)※※

Includes dividend income from subsidiaries of 130 million yen

2Operating income increase anddecrease factor（ Consolidated ）Operating income increased due to an increase in net sales
and a 2.2 point improvement in gross profit margin
Operatingincome(Millions of yen)

Gross profit margin S,G&A expenses
increase△171
improvement+207

Sales amountincrease +193
Administrative expenses+99
Selling expenses+64
Personal expenses +8173

0△55
FY2017 1Q

Operating income(+229)

FY2018 1Q
3Change of the Gross profit margin
Gross profit margin (1Q)：
Achieved a significant year-on-year improvement

Non-consolidated

Consolidated（％）（％）

FY2017 Gross profit margin
FY2018 Gross profit margin3229.93032+2.2pt

283028.5

FY2017 Gross profit margin
FY2018 Gross profit margin28.528.8+2.0pt2827.7262627.5

27.5

3Q

4Q

26.8

26.1242422222020

1Q

2Q

3Q

4Q

25.2

1Q

2Q

4By Segment
FY2017 1Q

FY2018 1Q

YoY

Net sales

8,181

8,827

107.9％

Operating income△39157－

Operating margin

△0.5％

1.8％

2.3pt

Net sales

948997105.2％

Operating income△211－

Operating margin

△2.3%

0.1%

2.4pt

Net sales

3438

110.2％

Operating income

515285.3％

Operating margin

15.2％39.4％

24.2pt(Millions of yen)

BrandFashion
Tire andWheelOthers5New store(1)
KOMEHYO Umeda store (‘17.2)
Projected an upscale image and won favor of womenin their 40s and 50s who are looking for high-priced items【KOMEHYO card members(‘17.6)】
MaleFemale

10's
50's

20's
60's

30's
70's～

40's

3.7% 0.2%
9.7%
33.5%

15.5%
19.8%

66.5%

25.9%
25.2%

6

New store(2)
KOMEHYO Shinjyuku store ANNEX (‘17.5)
Men’s Store handles men’s clothing items ranging from casual clothes tobusiness suits and accessories【KOMEHYO card members(‘17.6)】
MaleFemale

10's
50's

20's
60's

30's
70's～

40's

2.9% 0.7%
12.5%

11.7%

10.7%

26.1%

21.5%
87.5%
26.5%

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New store(3)
KOMEHYO Meieki store (‘17.5)
Visited by many customers who are doing shopping
around Nagoya Station【KOMEHYO card members(‘17.6)】
MaleFemale

10's
50's

20's
60's
5.4%

30's
70's～

40's

0.3%
7.1%

26.3%
19.8%
73.7%
28.2%

15.3%

23.9%

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Renewal store
UM Inazawa store・LS Uedayama store
Establishment of Purchasing Center—Enhancement of purchases from individual customers【USED MARKET Inazawa store】(‘17.4.1～)【LINK SMILE Uedayama store】(‘17.7.1～)

9Store Type28 stores (‘17.6)
5 Stores (‘17.6)

Large-scale
Nagoya Store，Meieki Store,
Shinjuku Store/ANNEX，Ginza Store，Umeda Store

Sales/Purchase ※２
Ladies casualclothing,
bags,
accessories

Sales/Purchase

Jewelry, precious metals,
watches, bags, clothing , etc.

6storesMid-scaleOpening stores in large major cities

Sales/Purchase3 Stores (‘17.6)

3stores

Small-scale

Sales/Purchase ※２
clothing in the low
price range,bags,
accessories

Opening stores in major cities

Sales/Purchase12stores ※１

Purchasing Center
Opening stores in major cities

Purchase only7店舗（※１ ‘17.7～８ Scheduled to close 2 Small-Scale stores）（※２Some stores only as for the sale）
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Purchase from Individual Customers
Strengthened purchases through “Rukuten point card“ and“Purchase Promotion Campaign”
Amount of purchasefrom individualcustomers
PurchasingCenterHome delivery
Purchasing
Total(Millions of yen)

FY2017 1Q

FY2018 1Q

YoY

4,067

4,359

107.2％

222

210

94.4％

4,290

4,570

106.5％【Launched partnershipwith the Rakuten Point Card program】
Rakuten Super Points
can be used and earned
from April 2017

【Purchase Promotion Campaign】
Rolled out a campaign of increasing purchase prices
for brands and items of the month11

Online Sales
Leveraging omni channel retailing, leading customers from online storesto physical stores and vice versa
FY2018 1Q(Millions of yen)

Net sales
YoY

No. of products
sold YoY

1,453

109.6％

111.6％Net sales

All online stores【Percentage of online sales by channel】 【Roles of smartphone e-commerce sites】
KOMEHYO
website14.8%

Back orders

25.6%
Others

59.5%

Omni channel retailing
Initiative1:Enabling delivery to physical stores
Initiative2:installment payment estimation
services
Initiative3:enhanced product inquiry services
Apps: Obtaining detailed product information
using bar-code readers

12

FY2018 plan
Upward revision of earnings forecast(Millions of yen)

Pre-revision
H1 plan

Revised
H1 planYoY

Pre-revision
FY2018 plan

RevisedFY2018 Plan

Net sales

19,40019,900104.9%

42,80043,300107.9%

Operatingincome80240－1,230

1,330

159.8%

Ordinary
income80240－1,230

1,330163.1%

Net income
attributableto owners ofparent80

130－750800

224.8%

Nonconsolidated

Pre-revision
H1 plan

Revised
H1 planYoY

Pre-revision
FY2018 plan

RevisedFY2018 Plan

Net sales

17,30017,800104.9%

37,40037,900108.6%

Operatingincome20150－

840

900

179.0%

Ordinary
income130270－

950

1,000

204.1%Net income

80190－580620

420.8%

Consolidated(Millions of yen)

YoY

YoY13Subsidiary(1)Auction、HONG KONG
Sales to secondhand dealers in Japan and abroad【KOMEHYO Auction】
Develop and operate an auction-basedplatform for secondhand dealers→ Help to expand sales channels andstrengthen purchases of secondhand
goods and enhance informationgathering within the industry[Auction scale]
Trade volume：JPY1,400million／month[No. of member companies]
762【KOMEHYO HONG KONG】
Develop sales channels overseas to leveragethem to strengthen purchases ofsecondhand goods in Japan→ Expand B2B business in Hong Kong andestablish relations with overseas buyers(HK Jewelry show)

14Subsidiary(2)Craft，Auto Parts Japan
Sale of tires, wheels, and vehicle parts【Craft】[Only one custom]
Combine tires and wheels with your favorite size andcolor，to one car in the world[Craft member system(Store limited)]
Issuing member cards with various benefits such as
price guarantee and service guarantee

15