Sanyo Shokai, a major apparel company whose business performance deteriorated due to the termination of contracts with famous overseas brands, promoted reforms such as the closure of unprofitable stores, and as a result, operating profit, which indicates the profit of its core business, turned profitable for the first time in seven years in the one-year financial results to February.

Sanyo Shokai is a major Japanese apparel company that develops clothing brands mainly in department stores, but its business performance deteriorated rapidly after the license agreement with the famous British brand "Burberry Group" ended eight years ago.

After that, we launched new brands and opened stores in order to secure sales, but sales were not good and we continued to lose money.

On the other hand, the company has been promoting structural reforms such as drastically closing unprofitable stores and implementing voluntary employee retirement, as well as reducing unsold inventory by narrowing down the types of products.

According to the financial results of the entire Group for the year to February 8, operating income, which indicates the earnings of the core business, was 14.2 billion yen, returning to profitability for the first time in seven quarters.

This was due to progress in reducing expenses in line with the structural reforms to date, the removal of restrictions on movement due to the coronavirus pandemic, and an increase in sales of suits and coats at department stores and directly managed stores.

Regarding future management, President Shinji Oe said at the press conference, "We were able to strengthen our earnings base due to the effects of structural reforms, and we would like to further accelerate the improvement of our products by selling out limited products."