Results Briefing: Q3RD(March to November 2020)
Results of 2021 Ending Feb.
2021.1.14

I. Results Overview

2Unit:Million Yen
Cumulative Q3RD 2020
Ending Feb.
Results

1. Consolidated Financial
Highlights -Profit and Loss-

Composition
Rate (%)

Cumulative Q3RD 2021 Ending Feb.

Results

Composition

Y/Y

Rate (%)

ChangeY/Y (%)Net Sales

125,823

100.0

97,219100.0-28,603

77.3

Gross Profit

68,524

54.5

46,741

48.1-21,783

68.2

SG&A Expenses

66,58352.9

55,012

56.6-11,570

82.6

62,54749.7

51,69953.2-10,848

82.7

774

0.6

598

0.6

-176

77.3

3,261

2.6

2,714

2.8

-546

83.2

Operating Income

1,940

1.5

-8,271-8.5-10,212-

Ordinary Income

3,312

2.6

-7,012-7.2-10,324-Extraordinary Income

3,109

2.5

2,485

2.6

-623

79.9

Extraordinary Loss

145

0.1

4,906

5.0

4,760

3377.6

Profit Before Taxes

6,276

5.0

-9,433-9.7-15,709-

Profit Attributable to Owners of Parent

4,821

3.8

-11,126-11.4-15,947-

EBITDA ※

5,976

4.7

-4,958-5.1-10,934-

SG&A Expenses(excl. Goodwill Amortization, Depreciation and Amortization)

Goodwill Amortization
Depreciation and Amortization*EBITDA＝Operating Income + Goodwill Amortization + Depreciation and Amortization

3

■ Business conditions of the entire Q3
Recovery of the market was slow due to the COVID-19 pandemic and the situation remains harsh.
Under such circumstances, although this is an evaluation of a 3-month spot period of Q3,
we were able to make our businesses recover to a surplus of operating income.
It has become clear that there exist strong brands which can increase net sales and earnings within
TSI’s brand portfolio even under the COVID-19 pandemic.
Unit:Million Yen
Q3RD 2020 Ending Feb.

Results

2. Consolidated Financial
Highlights -Profit and Loss(September to November)

Composition
Rate (%)

Q3RD 2021 Ending Feb.

Results

Composition

Y/Y

Rate (%)

ChangeY/Y (%)Net Sales

43,975100.0

40,948100.0-3,02693.1

Gross Profit

24,61556.0

22,57155.1-2,043

91.7

SG&A Expenses

22,51051.2

20,37349.8-2,136

90.5

21,121

48.0

19,19246.9-1,929

90.9

193

0.4

209

0.5

16

108.3

1,196

2.7

972

2.4

-223

81.3

Operating Income

2,104

4.8

2,197

5.4

93

104.4

Ordinary Income

2,543

5.8

2,630

6.4

87

103.4

Extraordinary Income

1,214

2.8

2,066

5.0

851

170.1

Extraordinary Loss

-227

-0.5

892

2.2

1,119

-

Profit Before Taxes

3,985

9.1

3,804

9.3

-181

95.5

Profit Attributable to Owners of Parent

3,768

8.6

3,307

8.1

-460

87.8

EBITDA ※

3,493

7.9

3,379

8.3

-114

96.7

SG&A Expenses(excl. Goodwill Amortization, Depreciation and Amortization)

Goodwill Amortization
Depreciation and Amortization*EBITDA＝Operating Income + Goodwill Amortization + Depreciation and Amortization4

■ Earnings improved quarter-by-quarter due torecovery of net sales and controlled earnings structure.
【Year-on-year change of net sales, gross profit, SG&A expenses by quarter】
Net sales
Net sales of Q3 (Sep.-Nov.) improved arriving at 93.1% year on
year. EC net sales in Japan remained favorable registering at
114.2% year on year.

Gross profit margin
It recovered to 91.7% year on year.
We controlled selling price, cost by reducing purchases,
discounts in check.

SG&A Expenses

3. Consolidated Financial
Highlights -Profit and Loss(Quarterly)

SG&A expenses
We made efforts to reduce fixed costs and costs wererestrained more than a decrease in net sales.

Net Sales

Operating income
We achieved 2.1 billion yen.
Lower revenue and higher profit were achieved arriving at
104.4% year on year on a 3-month basis.

Gross Profit

Extraordinary income
We tranferrd a fixed assets for 1.8 billion yen.
Unit:Million Yen

Net Sales
Gross Profit
SG&A Expenses
Operating Income
Ordinary Income
Profit Attributable to
Owners of Parent

Q1ST 2021 Ending Feb.
Y/Y
Y/Y (%)
ChangeQ2ND 2021 Ending Feb.
Y/Y
Y/Y (%)
ChangeQ3RD 2021 Ending Feb.
Y/Y
Y/Y (%)
Change-21,18850.6-4,38988.7-3,02793.1-15,55336.8-4,18678.3-2,044

91.7-7,19468.3-2,24089.5-2,13790.5-8,359-336.9-1,946

193.7

93

104.4

-8,277-279.2-2,135251.1

14,112654.9-12,928-422.7-2,559280.2

21,878680.5

5

■ 16 brands which account for 1/3 of the whole company
exceeded 100% for Q3 (Sep.-Nov.) year on year andgained customers’ support in the severe market under
the COVID-19 pandemic.

Unit:Million Yen
Q3RD 2020 Ending Feb.

Sales

4. Brands Overview(September to November)

Y/Y

Q3RD 2021 Ending Feb.

Composition

Gross Profit

Rate (%)

Ratio (%)

Sales

Composition

Gross Profit

Rate (%)

Ratio (%)

Sales (%)

Gross Profit
Ratio (pt)1.

nano・universe

7,027

16.0

50.3

5,910

14.4

54.5

84.1

+4.2

2.

NATURAL BEAUTY BASIC

3,778

8.6

59.3

3,112

7.6

58.4

82.4

-0.9

3.

PEARLY GATES

3,285

7.5

54.2

3,390

8.3

60.5

103.2

+6.3

4.

MARGARET HOWELL

3,571

8.1

63.4

2,815

6.9

66.4

78.8

+3.0

5.

AVIREX

2,300

5.2

62.3

1,809

4.4

65.0

78.6

+2.7

6.

STUSSY

1,342

3.1

69.4

1,344

3.3

67.1

100.1

-2.4

7.

HUF

1,398

3.2

42.8

1,364

3.3

48.0

97.6

+5.1

8.

ROSE BUD

1,428

3.2

54.4

1,094

2.7

52.2

76.6

-2.2

9.

UNDEFEATED

1,014

2.3

48.7

923

2.3

36.8

91.0

-11.9

10.

PROPORTION BODY DRESSING

1,231

2.8

61.7

1,079

2.6

63.1

87.7

+1.4

TOP10

26,38060.0

56.2

22,845

55.8

58.4

86.6

+2.2

Other Brands

16,48937.5

56.2

17,713

43.3

51.8

107.4

-4.4

Continuing Brands

42,87097.5

56.2

40,558

99.0

55.5

94.6

-0.7

Closed Brands

1,104

2.5

48.2

390

1.0

20.4

35.3

-27.9

TOTAL

43,975

100.0

56.0

40,948

100.0

55.1

93.1

-0.9

Net sales
Sports and Street line brands were steady. Looking at TOP10, net sales of “PEARLY GATES” and “STUSSY”
surpassed those in the previous year.
Gross profit margin
Gross profit margin of “nano・universe” which had been making efforts to reduce costs substantially
improved. Moreover, a majority of TOP10 brands improved gross margin as well.

6

■ Revenue rose in each category, no. of brands with higher
profit increased.
【Summary of Q3(Sep.-Nov.) by category】
Lower revenue/higher profit

Higher revenue/higher profit

Higher revenue/lower profit

SportsSports

5. Summary by category(September to November)StreetMen’s/Ladies

LadiesMen s/Ladies

Street’Outdoor/others

Cosmetics

7

■ Brick-and-Mortar stores, main sales channel, continues to struggle due tothe impact of COVID-19, but net sales remained steady thanks to reinforced
measures to draw customers to the Company’s EC.
Cumulative Q3RD 2020
Ending Feb.

6. Net Sales
Per Channel

Cumulative Q3RD 2021 Ending Feb.

Results

Composition

Results(Million yen)

Rate (%)(Million yen)

Y/Y (%)

Composition

Composition Rate

Rate (%)

Y/Y Change

Department Stores

16,478

13.1

9,399

57.0

9.7

-3.4ptCommercial Facilities(*1)

64,19351.0

41,51664.7

42.7-8.3ptIn-house EC

7,765

6.2

12,579

162.0

12.9

+6.8pt

3rd Party

17,60414.0

16,40393.2

16.9+2.9pt

E-Commerce

25,37020.2

28,982

114.2

29.8

+9.6ptOthers(*2)

13,481

10.7

11,11682.5

11.4+0.7ptDomestic

119,523

95.0

91,01476.1

93.6-1.4pt

E-Commerce

553

0.4

2,186

395.3

2.2

+1.8ptOverseas(*3)

6,299

5.0

6,205

98.5

6.4

+1.4pt

E-Commerce TOTAL

25,92320.6

31,168

120.2

32.1

+11.5pt

TOTAL

125,823

100.0

97,219

77.3

100.0

-

*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores.
*2 Apparel businesses such as wholesale, intercompany sales and non-apparel businesses of the group companies.
*3 Results of Efuego Corp. which operates EC sites centering on Tactics.com in the U.S. is to be consolidated from the second

quarter of 2021 and onward. The results are recorded in overseas sales.

TACTICS which was consolidated due to M&A this fiscal year made overseas EC grow by 1.3 billion yen
and contributed to EC net sales of TSI.
8

■ The Company’s EC remained strong, a shift to EC continued to be
reinforced.
••

7. Sales of
In-house EC

Consolidated EC functions and staff of each company of the Group into TSI EC
strategy. Made a transition to EC expansion strategy with the cross-functional
functions.
Focused on reinforcing staff contents and measures for staff to serve customers
online to make collaboration between store staff and EC a new foundation.

【Financial results of Q3】
Staff’s online service to customers
CVR via <Laline /PEARLY GATES /ADORE /MARGARET HOWELL>
is about 10 times compared to normal EC. “MARGARET HOWELL” accounts for 10% of
it’s EC net sales.

Staff contents
Net sales via staff contents of＜JILLSTUART /ROSE BUD /HUMAN WOMAN /ADORE /Sanei bd /TOKYO STYLE /nano･universe> accounts for 35% of the Company’s EC net
sales.

9Unit:Million Yen
Cumulative Q3RD 2020 Cumulative Q2ND 2021
Ending Feb.
Results
Current Assets

8. Consolidated Financial
Highlights -Balance sheet-

Cumulative Q3RD 2021 Ending Feb.

Ending Feb.

Composition
Rate (%)

Results

Composition
Rate (%)

Results

Composition

Y/Y

Rate (%)

Change79,75944.1

69,04844.8

70,67845.8(of Cash and Deposits)

28,372

15.7

31,477

20.4

28,131(of which, Inventory)

28,774

15.9

21,913

14.2

23,823

101,25855.9

85,18755.2(of Investment Securities)

30,96417.1

24,583(of Investment Real estate)

17,381

9.6

46,934Y/Y (%)

Q3/Q2
ChangeQ3/Q2 (%)

-9,081

88.6

1,630

18.2

-241

99.1

-3,34689.4

15.4-4,951

82.8

1,910

108.7

83,745

54.2-17,51382.7-1,442

98.3

15.9

26,375

17.1-4,589

85.2

1,792

107.3

16,516

10.7

16,430

10.6

-950

94.5

-86

99.5

25.9

50,64832.8

48,723

31.6

1,789

103.8

-1,925

96.2

8,586

4.7

20,702

13.4

14,817

9.6

6,231

172.6

-5,885

71.6

34,142

18.9

26,90917.4

25,296

16.4-8,84774.1-1,61494.0

26,816

14.8

20,514

13.3

18,60412.0-8,21169.4-1,91090.7

Total Net Assets

99,94055.2

76,67849.7

80,40452.1-19,535

80.5

3,727

104.9

TOTAL Assets

181,017100.0

154,235

100.0

154,423100.0-26,594

85.3

188

100.1

Noncurrent Assets

Current Liabilities(of Short term Loans payable)
Noncurrent Liabilities(of Long term Loans payable)

102.4

Current assets
Cash and deposits were at 99.1% about the same level year on year.
Cash and deposits ratio (cash and deposits /current liabilities) was maintained at 57.7％.
Inventories were 82.8% year on year mainly reflecting that purchase was restrained at 70%
compared to the company’s original forecasts and the negative effects of revaluation of inventories
were halved year on year.
Current liabilities
Some 6.0 billon yen which was borrowed for measures against COVID-19 was all repaid in Q3.

10

01 Net sales, operating income for Q3 sharply surpassed therevised plan.

【Summary of Q3 (Sep.-Nov.)】•••

There were many brands which recorded strong net sales in the harsh sales competition.
EC net sales were steady as sales at stores improved and a high EC composition ratio wasmaintained.
Gross profit margin improved by keeping purchases, discounts in check, etc.

02 The impact of the emergency declaration of a state of emergency on

9. Summary of Q3

our results for the current fiscal year is to be analyzed from now on.

【Earnings forecast for Q4 (Dec.-Feb.)】
•
•
•

•

Monthly net sales for December 87.2% at all stores and 86.1% at existing stores.
Sales competition in January were off to a tough start in the wake of a rapid expansion of the
COVID-19.
Uncertain is an impact of the emergency declaration for Tokyo and its surrounding threeprefectures on January 7 and 7 prefectures including Osaka on January 13.
We have set up a project team for measures to be implemented under the declaration of a state of
emergency.

03 We are done with financing for an unexpected demand for funds.
【Measures against the COVID-19 and response to a new demand for funds for the
medium-term reform program】•••

Funds in hand of 30 billion yen or over are expected to increase at the year-end due to sales of 2 ofthe fixed assets Q4.
A special borrowing limit of 30 billion yen from our main bank has been secured without a break.
We are considering a strategic investment for a future earnings structure reform.

11

Ⅱ The progress of Medium-Term
Reform programs

12

■ Composition of TSI Innovation Program 2024
Creating a fusion of digital and power of humanity, bringing management and field closer, we
accomplish the speedy business operation suited to the digital age.
We will build a digital-fashion company which creates originality by creativity and logic.

Lower ofthe break-evenpoint

1. Medium-Term
Reform programs

Accelerate the
Speed in corporate
management

Power up ourBusiness creation

Change our mind,culture and work-style

01. DX of management and operations✓ Digitalization of back-office✓ Visualization of management index and KPI management

02. New strategy of merchandising and marketing✓ Strategy of merchandising and purchasing plan
✓ Content strategy for promotion✓ Core strategy for e-commerce with sales staff✓ Brand strategy for New Normal

04. Transfer sales channel to e-commerce✓ Investigation for fascinating User Interface✓ Unified commerce✓ Develop new customers without depending on stores

03. Digitalization of stores and earnings recovery✓ Earnings recovery of existing stores/
Strategy which has stores in prime locations.
✓ Investigation for digitalization of stores✓ Strategy for closing stores✓ Reciprocal customer transfer between stores and ecommerce.

05. Global strategy and development of human resources✓ Global strategy✓ Bring up digital-native brands✓ Conglomerate D2C businesses/Strategic M&A

13

01 Lower the breakeven point by reducing fixed
expenses and withdrawing from businesses

Implementation of downsizing 300 employees

Reduction of
personnel
expenses

2. Progress of theStructural Reform・Estimated cost reduction involving withdrawal of stores andwithdrawal of business・Implement it by the end of February, 2021. 140 million yen is recorded
as an extraordinary loss at Q3-end.
Withdrawal of 243 unprofitable stores ※Withdrawal ofstoresReduction of
office space▲2billion yen

Domestic 211 stores, Overseas 32 stores FY 2021
※ In addition to the above, withdrawal of several shops areunder consideration.
Withdrawal of 5 subsidiaries and 3 brands

Withdrawal of
business▲3billion yen▲4billion yen

1st half …”TSI ASIA LIMITED” ,“Natural Beauty” and ”FACT”
2nd half…”UNIT&GUEST”,”Laline Hawaii Corporation”and “Herschel Supply”“SPIC INTERNATIONAL CO.,LTD.”,” DUN' A DIX Co., Ltd.”

Reduction of office space
Start the project for office integration of 24 subsidiaries.
14

01 Organizational realignment【Transformation to accelerate the speed in corporate manegement 】
TSIHD
Overseas

PLAX Co., Ltd

Toska-Bano'k Co.,LtdHYBES Co.,LTD.

S GROOVE CO.,LTD

Laline JANAN
CO.,LTD.

TSI SEWING
CO.,LTD.

and wander inc.

ARPEGE CO.,LTD.

JACK INC.

UENO-SHOKAI
CO,.LTD.

TSIPN(Special
subsidiary function)

TSI PRODUCTION NETWORK
CO.,LTD.(TSIPN)TSI EC STRATEGY
CO.,LTD.

ISOLAR CO.,LTD

ROSE BUD
CO.,LTD.

ANGLOBAL ltd.

nano universe co.,ltd.

TSI GROOVE &SPORTS CO.,LTD.

SANEI bd CO,.LTD.

SANEIINTERNATIONAL
CO.,LTD.

3. Toward one
company integration

Urth Cafe JAPAN
CO.,LTD.

Starjoynus Inc.

Integrated in March 2021
Integrated in March 2022（Plans）

Do not integrate（Plans）

TSI CO., LTD【NEW】

Overseas

PLAX Co., Ltd

Toska-Bano'k Co.,LtdHYBES Co.,LTD.

S GROOVE CO.,LTD

Starjoynus Inc.

Laline JANAN
CO.,LTD.

ARPEGE CO.,LTD.

TSI SEWING
CO.,LTD.

JACK INC.

and wander inc.

UENO-SHOKAI
CO,.LTD.

“SANEI-INTERNATIONAL CO.,LTD.” ” SANEI bd CO,.LTD.”“TSI GROOVE & SPORTS CO.,LTD.” “nano universe co.,ltd.” “ANGLOBAL ltd.” “ROSE BUD CO.,LTD.”“ISOLAR CO.,LTD” “TSI EC STRATEGY CO.,LTD.””TSI PRODUCTION NETWORK CO., LTD.”TSIPN(Special
subsidiary function)

Absorption-type merger

TSIHD

Urth Cafe JAPAN
CO.,LTD.

15

02 Organizational structure of next fiscal year
Supervision

Pure holding company (TSI HOLDINGS CO., LTD.) /the Board of
Directors

Business
execution

Integrated business company (TSI CO., LTD.) /Business Execution
DivisionGroup CEO

3. Toward one
company integration

Group Chief
Officer

1st Business DV
Br

Br

Br

2nd Business DV
Br

Br

Br

3rd Business DV
Br

Br

Br

4th Business DV
Br

Br

Br

5th Business DV
Br

Br

Br

Product Development
Function

Product Development
Function

Product Development
Function

Product Development
Function

Product Development
Function

Store Management
Function

Store Management
Function

Store Management
Function

Store Management
Function

Store Management
Function

SCM DV

Function

SCM（Logistics/Production）

Business Development
DV

Function

Overseas・M&A/PMI・License

Store development/Support DV

Function

Sales Support/Store Development

Digital Business DV

Function

Digital (EC・Digital Marketing)

DX DV

FunctionDX

Business Strategy
OfficeFunction

Business Strategy・New Business Development

Corporate DV

Function

Business Management・Finance/Accounting・General Affairs・HR・IR

16

01 Create new customer values with the mostadvanced method【Progress of capabilities to create businesses】
Consolidation of
EC functions
and human
resources

Consolidate EC organizations, functions of business subsidiaries(some 180 persons)
Digital team was centralized on Sep. 1 to roll out knowhow across-theboard, pursue sophisticated operation and investment optimization.

Evolution of services through unified commerce“Offer brand experience in which stores and EC are unified”

4.Progress of the Business
Structural Reform✓✓✓

Offer One-to-One services with no border between stores and E-commerce.
Combine experiences by using real sales staff, a strength of TSI, for digital
services
Prior development was implemented at “nano･universe” this fiscal year and it
is to be rolled out across-the-board from next fiscal year and onward

Create new customer leads from EC to stores

・Store visit reservation/customer service staff reservation/customer recommendation
7 function at stores, etc.

Create new EC
channels✓ Achieve new EC malls
specializing incoordination postingby store staff✓ Make a strategic
improvement on
MIX.Tokyo and to beopened in March
2021

Digital service by store staff
・Continue to strengthen online customer services by sales staff
・Establish STAFF COMMERCE (stated right)

Create new businesses in the digital era✓ To jointly develop EC solution providing business for retails with Salesforce
and OSF Global Japan✓ We will give support to EC operators by making use of EC operation specialty and
COMMERCE CLOUD utilization capabilities.
17

02 Create new customer values with the most advanced
methodRestartoverseasbusiness

Digitalization of the business in the U.S.
Tactics team acquired through M&A is to renovate the EC
and marketing function of HUF business

Deepen overseas EC business and establish a new business model in which EC, stores, CS
are linked with one another.

Unit: in dollars

4.Progress of the Business
Structural Reform

Net sales,
previous
fiscal year

EC net sales,
this fiscal year

Net sales atstores this fiscal year

– year on year

Net sales for Q2 was 205.8% year on year, Net sales for Q3 was 122.3% year on year
Favorable performance was maintained totaling Q2 and Q3 to be consolidated.
Even under the COVID-19 pandemic, we established a sales format that could lead to gaining a different form from theconventional one in which stores and sales staff can engage with customers and net sales increased.

Stores (community’s meetinghouse)

6 million people come to EC site annually

Customer support by means of Skype,
chat

18

03 Evolution of the existing businesses ― Change a way ofselling【Establish a business model not dependent on sale】

4.Progress of the Business
Structural Reform「PEARLY GATES」「MARGARET HOWELL」「STUSSY」✓ 2020SS “MARGARET HOWELL”
Abolished sale at stores/on EC✓ 2020FW “PEARLY GATES”
Abolished sale at stores✓ “Apweiser-riche” and “STUSSY”
have already established abusiness model which does not relyon sale.

【Efficiency of inventory management using digital was achieved】•

Facilitated the use of customer’ order application (a mechanism to reserve EC inventories for orders
received at stores), and minimized an impact of restrained purchase under the COVID-19 pandemic.
Efficiency in inventory management was achieved.

Application for customers’ order<No. of stores which have installed it (as of Nov.-end, 2020)>
454 stores which are equivalent to 50% of stores in Japan have installed it. We will increase
brands/stores that will accommodate it.
<Q3 accumulative number 13,156 orders/for Q3 on a non-consolidated basis 10,363 orders>Customer’s order app’s composition exceeds 10% for Q3 on a non-consolidated basis mainly at<ADORE /HUMAN WOMAN /JILLSTUART>(Net sales on customer’s order apps / Net sales at stores).
19

04 Establishment of D2C platform
ETRE TOKYO newly joined the Group from Q3 in 2021 Ending Feb.
Missions of HYBES, the receiving company of ETRE, include setting up new businesses
mainly D2C business and doing additional M&A.

4.Progress of the Business
Structural Reform

Earnings forecast of ETRE TOKYO remained strong at 126.5% over Q3 forecast.
From next fiscal year on, we will aim for business expansion making HYBES a key
function of D2C platform of TSI.
20

01 Capture a new fashion trend【Topics grabbing attention living with the COVID-19】

5.Conclusion「UNION」×「JORDAN」

STUSSY’s 40th anniversary
T-shirts made collaborating with 5
world-famous designers“Laline” and “ROSE BUD” introduced
services which give added values to “place”
linking the Company’s own apps and beacon
provided by “Tangerine” and “Yappli”

Introduction of staff’s
online customer
services began inapparel as well including“PEARLY GATES” in
September and onward.

Erika Hara, a professional golfer who
has a contract with “PEARLY GATES”
and “MASTER BUNNY EDITION”, won
two championship titles in 2020.

6.05 million gowns for medial
use are supposed to be
produced by March 2021.

21

02 Severe market environment is expected to continue.
We are to analyze the impact of the declaration of a state of
emergency on our results for the current fiscal year from now on.
As for our forecasts this fiscal year, we plan to maintain thedisclosed figures in Q2.

5.Conclusion

03 Pursue speedy business management.
Eliminate overlaps of the headquarters’ organization by establishinga new organizational structure based on one company integration.
Increase profitability with two perspectives of business and function
through the CXO structure.

04 We began to establish a new business model with lower
revenue and higher profit.
Lowering the breakeven point is progressing steadily.
A line of strong brands emerged even under the COVID-19 pandemic,
and strategies became clear.
22

Ⅲ Reference Data

23

Unit:Million Yen
Cumulative Q3RD 2020 Ending Feb.

Sales

4. Brands Overview

Composition

Gross Profit

Rate (%)

Ratio (%)

Y/Y

Cumulative Q3RD 2021 Ending Feb.

Sales

Composition

Gross Profit

Rate (%)

Ratio (%)

Sales (%)

Gross Profit
Ratio (pt)1.

nano・universe

19,15715.2

47.0

13,915

14.3

43.9

72.6

-3.1

2.

NATURAL BEAUTY BASIC

11,668

9.3

59.1

8,179

8.4

49.0

70.1

-10.1

3.

PEARLY GATES

9,555

7.6

52.2

7,829

8.1

54.7

81.9

+2.5

4.

MARGARET HOWELL

10,459

8.3

59.5

6,325

6.5

53.6

60.5

-5.9

5.

AVIREX

6,064

4.8

61.7

4,169

4.3

59.6

68.7

-2.1

6.

STUSSY

3,863

3.1

70.0

3,394

3.5

64.5

87.9

-5.4

7.

HUF

3,421

2.7

48.3

3,142

3.2

46.6

91.9

-1.7

8.

ROSE BUD

4,537

3.6

51.0

2,934

3.0

41.1

64.7

-10.0

9.

UNDEFEATED

3,400

2.7

45.0

2,810

2.9

39.3

82.7

-5.7

10.

PROPORTION BODY DRESSING

2,995

2.4

56.7

2,533

2.6

56.5

84.6

-0.2

TOP10

75,123

59.7

54.2

55,233

56.8

50.3

73.5

-4.0

Other Brands

49,261

39.2

55.2

41,574

42.8

45.5

84.4

-9.7

Continuing Brands

124,385

98.9

54.6

96,808

99.6

48.2

77.8

-6.4

1,437

1.1

40.2

411

0.4

22.9

28.6

-17.4

125,823

100.0

54.5

97,219

100.0

48.1

77.3

-6.4

Closed Brands
TOTAL

24

Cumulative Q3RD 2020
Ending Feb.
All Stores：104.4%
Existing Stores ：97.1%
110.3
108.1
106.4
106.3
99.2

Domestic Monthly
Sales Information

103.3

99.2

100.9

112.7

111.0

110.6

105.5

105.7

101.2
101.9

99.4

Cumulative Q3RD 2021
Ending Feb.
All Stores： 74.6%
Existing Stores：83.4%

91.5

94.3
83.4

93.5

93.0 90.8 91.7
95.8 92.6

101.7

90.8

91.9
88.8

82.8 84.3

80.1

84.8

83.1

97.1
82.4

81.2
77.0

66.6
65.4

43.3

33.7

25

# of Stores

Q3RD 2020 Ending

FY Ending Feb.

Store

Store

Q3RD 2021 Ending

Feb. ※1

2020

Open

Close※2

Feb.

1,029

998

Change+8-23# of Stores

74

76

Change

-69

-67

1,103

1,074

-61

-90

+79

-80

997

Domestic

Store Distribution

-1
+6

-32

50

Overseas# of Stores

-26
+85

-112

1,047

Total
Change-27*1 Number indicated on "Change" rows are comparison with the end of 2019 Ending February.

26

Disclaimer
Descriptions about future within this document are based on the informationthat the company obtains on the date of this report and certain assumptions
deemed to be reasonable. Actual earnings may differ materially from various
future factors.

27