A Message from Management

A Message from Management

A Message to Our Shareholders

Enriching and adding color to people’s lives while caring for the planet
We will continue to make concerted efforts as a group. Enriching and adding color to people’s lives while caring for the planet
We will continue to make concerted efforts as a group.

Since its founding in 1927, the Onward Group has long been committed to its management philosophy of "Enriching and adding color to people's lives”.
In April this year, we formulated the Group's medium- to long-term management vision, "ONWARD VISION 2030,", and established a new mission statement, “Enriching and adding color to people’s lives while caring for the planet,” which combines our existing management philosophy with the philosophy of sustainable management that values the enrichment and color of the global environment.
In recent years, the business environment surrounding the Group has been undergoing major structural changes due to the prolonged coronavirus pandemic and the progress of digitalization of society. Against this backdrop, the Group will continue to make concerted efforts to conduct a customer-centric business on a daily basis leveraging employees’ diverse strengths and to operate our business in a manner that facilitates the co-creation of customer value together with customers.
We sincerely ask for the continued understanding and support of our shareholders in the management of the Group.

Michinobu Yasumoto, President and CEO

Summary of Business Results for the Fiscal Year Ended February 28, 2021

During the fiscal year under review, the Japanese economy remained in a situation where its outlook is unclear ,due to the impact of events stemming from the global spread of COVID-19, such as the state of emergency in Japan, which has been declared twice, lockdowns in various countries, and negative influence on economic activities due to bans on overseas travel.
In this harsh management environment, the Company strived to curtail purchasing and reduce fixed expenses, while steadily implementing measures such as withdrawal from the Italy business, which had been an unprofitable business, discontinuation of unprofitable brands, and closing of unprofitable stores in Japan and overseas, as part of the global business reforms that has been conducted since the previous fiscal year.
E-commerce sales grew significantly, increasing by 26% year-on-year, mainly through Onward Crosset, an online store directly managed by Onward Kashiyama Co., Ltd., which is a core group company, and the Lifestyle Business also trended strongly. However, the consolidated performance was seriously affected by factors such as a significant decrease in sales at physical stores including department stores and shopping centers, which are located mainly in metropolitan areas, and temporary closures due to lockdowns overseas.
As a result of the above, consolidated net sales amounted to 174,323 million yen (a 29.8% decrease yearon-year), consolidated operating loss amounted to 21,230 million yen (operating loss of 3,061 million yen for the previous fiscal year), consolidated recurring loss amounted to 20,174 million yen (recurring loss of 3,835 million yen for the previous fiscal year), and loss attributable to owners of parent amounted to 23,181 million yen (loss attributable to owners of parent of 52,135 million yen for the previous fiscal year).

Forecast for the current fiscal year (ending February 28, 2022)

In FY02/22, the Company plans to utilize new sales methods that integrate physical stores with e-commerce and implement initiatives to advance the customization field in the Apparel business. In addition, we will step up group synergies in the Lifestyle business, including by leveraging loyalty card membership programs. As a result, we forecast full-year consolidated sales of approximately 190.5 billion yen (up 9% YoY). We are targeting e-commerce sales of 50 billion yen for the entire group.
On the earnings front, we forecast operating profit of 3.2 billion yen and net income of 6.3 billion yen, due to the effects of increased sales, effective utilization of products for which there were no sales opportunities in the fiscal year under review, thorough inventory control and curbing of discount sales, and the effects of global business reforms.