Japan: DCM HLDGS Demonstrate Significantly Increased Sales and Profits in Q1.

DCM HLDGS posted an 8.8% YoY increase in sales to JPY124 billion in March-May, partly due to the favourable impact on sales due to Covid-19, as seen in many countries throughout the world. DIY Retailing has been classified as essential retailing in Japan.

The number of DCM-branded items increased by 3,400 SKUs from the same period last year, now making up some 23,300 SKUs, and the improved mark-up rate has pushed the gross profit margin upward 0.9 points YoY to 33.9%.

On the other hand, the SG&A expense has been cut down by 2.6 points YoY to 26.0%, partly due to a reduction in newspaper flyers as the company refrained from aggressive sales promotion during the height of the pandemic. As a result, operating profit was up YoY by 70.4% to JPY11.6 billion.

The sales of gardening, DIY projects and infection-prevention-related products have significantly increased due to the stay-home and remote work trends seen in Japan.