Gunze's consolidated results for the fiscal year ending March 2013 were sales of 132,373 million yen (down 3.1% from the previous year), operating profit of 1,710 million yen (up 67.2%), ordinary profit of 2,328 million yen (up 138.8%), and a net loss of 1,161 million yen. Despite the decline in sales, operating and ordinary profits increased significantly, but the company incurred a net loss due to the recording of fixed asset impairment losses in the electronic components business.
Sales by segment were: Electronic Components Functional Solutions: 49,538 million yen (down 3.8%), Apparel: 69,991 million yen (down 4.1%), and Life Creation Business, which operates sports clubs and provides real estate, for 13,867 million yen (up 3.3%).
In the apparel sector, sales of the men's casual innerwear brand "Body Wild" grew thanks to new product launches, but continued struggles in the mainstay white basic innerwear resulted in a decline in revenue. However, operating profit increased significantly to 1.393 billion yen (up 625.5% from the previous fiscal year) thanks to cost improvements and fixed cost reductions.
One of the challenges this fiscal year is to transform the lingerie foundation section, which many unprofitable apparel stores currently have, into a section that combines women's innerwear and lingerie foundation, thereby enhancing synergy with women's innerwear, a specialty of the company, and improving profitability. Furthermore, as growth has been sluggish at the three directly managed stores for the men's innerwear brand "Body Wild," the company will transition to a mixed store format that also carries women's innerwear, socks, and stockings.
By expanding its lineup of innerwear products for people in their 50s and 60s, exemplified by "Grand Fit," launched last year, the company will strengthen its product offerings for all age groups. In particular, innerwear for people in their 50s and 60s is in short supply relative to demand, so the company views this as a growth market and will proactively promote its products.
For the fiscal year ending March 2014, the company expects sales to increase to 139 billion yen, operating profit to increase to 3 billion yen, ordinary profit to increase to 2.9 billion yen, and net profit to increase to 1.5 billion yen. In addition, in the apparel sector, the company expects sales to decrease to 69.9 billion yen and operating profit to decrease to 100 million yen, taking into account negative factors such as the rapid depreciation of the yen since the end of last year, rising raw material costs and labor costs at overseas factories, and the expected increase in the consumption tax rate next spring.
Sales by segment were: Electronic Components Functional Solutions: 49,538 million yen (down 3.8%), Apparel: 69,991 million yen (down 4.1%), and Life Creation Business, which operates sports clubs and provides real estate, for 13,867 million yen (up 3.3%).
In the apparel sector, sales of the men's casual innerwear brand "Body Wild" grew thanks to new product launches, but continued struggles in the mainstay white basic innerwear resulted in a decline in revenue. However, operating profit increased significantly to 1.393 billion yen (up 625.5% from the previous fiscal year) thanks to cost improvements and fixed cost reductions.
One of the challenges this fiscal year is to transform the lingerie foundation section, which many unprofitable apparel stores currently have, into a section that combines women's innerwear and lingerie foundation, thereby enhancing synergy with women's innerwear, a specialty of the company, and improving profitability. Furthermore, as growth has been sluggish at the three directly managed stores for the men's innerwear brand "Body Wild," the company will transition to a mixed store format that also carries women's innerwear, socks, and stockings.
By expanding its lineup of innerwear products for people in their 50s and 60s, exemplified by "Grand Fit," launched last year, the company will strengthen its product offerings for all age groups. In particular, innerwear for people in their 50s and 60s is in short supply relative to demand, so the company views this as a growth market and will proactively promote its products.
For the fiscal year ending March 2014, the company expects sales to increase to 139 billion yen, operating profit to increase to 3 billion yen, ordinary profit to increase to 2.9 billion yen, and net profit to increase to 1.5 billion yen. In addition, in the apparel sector, the company expects sales to decrease to 69.9 billion yen and operating profit to decrease to 100 million yen, taking into account negative factors such as the rapid depreciation of the yen since the end of last year, rising raw material costs and labor costs at overseas factories, and the expected increase in the consumption tax rate next spring.
