Top Message

青山 理

We would like to express our deep gratitude to shareholders for your continued support of the Aoyama Trading Group.
In the current fiscal year, the outlook for the Japanese economy remains uncertain owing to factors such as rising prices caused by soaring global resource prices, etc., and the weakening of the yen following interest rate hikes in Europe and the Americas aimed at curbing inflation. However, consumer spending and other factors have recovered moderately, partly as a result of the normalization of social and economic activities as an increasing number of people have adapted to life with COVID-19, as well as the effects of various government policies. In this environment, both sales and profits exceeded those of the previous year, mainly thanks to improvements in the performance of the Business Wear Business, as well as the Total Repair Service Business, and the Franchisee Business, all performed well.

In this business environment, under “Aoyama Reborn 2023”, our Medium-term Management Plan with the fiscal year ending March 31, 2024 as the final year, the Group will make concerted efforts to realize the three aspects in the management vision which are “Innovation and Challenge of Business Wear Business,” “Promote Group Management,” and “Sustainability Initiatives.” Under the plan, we will also work to achieve the KPIs and the ESG targets in order to contribute to the development of a sustainable society through our business activities.

General Outline

Business results for the current period

In our group, sales were higher than in the previous year, due in part to the relaxation of regulations that lead to restrictions on activities and outings throughout the period.

(¥ Millions)

 

Net Sales

Operating income or loss(▲)

Segment

Current term

Previous term

Current term

Previous term

Business wear businness

126,379

113,278

3,156

678

Credit card business

5,013

4,841

2,205

1,989

Printing and media business

12,299

12,159

514

▲337

Sundry sales busineaa

15,731

16,039

233

488

Total repair service business

12,382

10,161

293

▲519

Franchisee Business

13,157

10,960

872

211

Others

1,654

1,642

▲316

▲230

Adjustments

▲3,111

▲3,120

150

▲97

Total

183,506

165,961

7,110

2,181

Review of Operations

Business Wear Business

Aoyama Trading Co., Ltd., Blue Rivers Co., Ltd., MDS Co., Ltd., Eisho Co., Ltd., FUKURYO Co., Ltd. and Aoyama Suits (Shanghai) Co., Ltd., Melbo Men's Wear, Inc.

Menswear Retail Business / Sales percentage

Net sales of the business were 126,379 million yen or 111.6 % of the previous fiscal year and segment income (operating income) was 3,156 million yen or 465.3 % of the previous fiscal year.
In the Business Wear Business of Aoyama Trading Co., Ltd., which is the core segment of our business, there was a recovery in replacement demand, which had been flat for about two years due to the COVID-19 pandemic and in demand for special occasion wear due to the relaxation of restrictions on activities, and sales of men’s suits, our mainstay, and formal wear were higher than in the previous fiscal year. As a result, sales at existing stores in the Business Wear Business were 111.7% of what they were in the previous fiscal year.
The number of men’s suits sold was 1,214 thousand suits or 99.9% of the previous fiscal year and average sales unit price was 28,794 yen or 107.6% of the previous fiscal year.
From the current fiscal year, the Company acquired all the issued shares of S Squared, Inc. and made it a wholly owned subsidiary. As a result, three companies were included in the scope of consolidation: S Squared, Inc. the holding company, and its subsidiaries Melbo Men’s Wear Inc., which runs order-made suit brand “azabu tailor,” and MELBO CLOTHING MANUFACTURING, INC.
In addition, S Squared, Inc. was eliminated through an absorption-type merger with Melbo Men’s Wear Inc. as the surviving company.

Credit Card Business

Aoyama Capital Co., Ltd.

Creadit Card Business / Sales percentage

In the Credit Card Business, net sales were 5,013 million yen or 103.6% of the level in the previous year and segment income (operating income) was 2,205 million yen or 110.9% of the previous fiscal year. This was the result of an increase in shopping and cashing transactions due to the increase in opportunities to go out.
Funds were acquired through borrowing from the parent company, Aoyama Trading Co., Ltd., and through the issuance of corporate bonds.
Number of effective members are 4.11 million as end of February 2023.

Printing and Media Business

ASCON Co., Ltd.

Commerical Printing Business / Sales percentage

In the Printing and Media Business, net sales were 12,299 million yen or 101.2% of the previous fiscal year and segment income (operating income) was 514 million yen compared to segment loss (operating loss) of 337 million yen in the previous fiscal year, mainly due to a recovery in sales related to flyers, direct mail, and digital sales promotions, as well as new device-related sales such as cab signage terminals digital signage used inside taxi.

Sundry Sales Business

Seigo Co., Ltd.

Sundry Sales Business / Sales percentage

In the Sundry Sales Business, net sales were 15,731 million yen or 98.1% of the previous fiscal year and segment income (operating income) was 233 million yen or 47.8% of the previous fiscal year due to a decrease in stay-at-home demand resulting from the relaxation of restrictions on activities, in addition to higher costs, including utilities and cashless settlement fees.
As of the end of February 2023, there were 113 stores.

Total Repair Service Business

Minit Asia Pacific Co., Ltd.

Total Repair Service Business / Sales percentage

In the Total Repair Service Business, net sales were 12,382 million yen or 121.9% of the previous fiscal year and segment income (operating income) was 293 million yen compared to segment loss (operating loss) of 519 million yen in the previous fiscal year, mainly due to the recovery of sales in the Japanese business due to the resumed movement of people and service price revisions, and further growth in sales in the overseas business, which had already recovered.

Franchisee Business

glob Co., Ltd.

Total Repair Service Business / Sales percentage

In the Franchisee Business, net sales were 13,157 million yen or 120.0% of the previous fiscal year and segment income (operating income) was 872 million yen or 413.7% of the previous fiscal year, mainly due to recovery in sales to pre-pandemic levels (the fiscal year ended March 2020) in the Food Service Business with the relaxation of restrictions on activities and a significant expansion in the Reuse Business driven by the pandemic.

Others

WTW Corporation, Customlife Co., Ltd.,

Others / Sales percentage

In Other Business, net sales were 1,654 million yen or 100.7% of the previous fiscal year and segment loss (operating loss) was 316 million yen (segment loss (operating loss) of 230 million yen in the previous fiscal year).
As of the end of March 2023, there were 7 WTW stores.

March 31, 2023

President

青山 理