Quarterly trends and results

Cumulative		FY12/20				FY12/21				FY12/21
(JPYmn)		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	% of Est.	FY Est.
Sales		3,105	6,574	11,421	16,765	5,046	11,673	18,393	25,714	101.2%	25,400
	YoY	9.8%	-4.2%	8.4%	17.6%	62.5%	77.6%	61.0%	53.4%		51.5%
Gross profit		1,698	3,644	6,256	9,275	2,723	6,402	10,115	14,139
	YoY	15.5%	-0.4%	9.8%	20.1%	60.3%	75.7%	61.7%	52.4%
	Gross profit margin	54.7%	55.4%	54.8%	55.3%	54.0%	54.8%	55.0%	55.0%
SG&A expenses		1,693	3,381	5,463	7,782	2,163	4,788	7,558	10,319
	YoY	14.7%	6.0%	11.3%	14.5%	27.7%	41.6%	38.4%	32.6%
	Gross profit margin	54.5%	51.4%	47.8%	46.4%	42.9%	41.0%	41.1%	40.1%
Operating profit		5	263	794	1,493	560	1,613	2,557	3,819	104.6%	3,650
	YoY	-	-44.2%	0.4%	61.6%	-	513.5%	222.1%	155.8%		144.4%
	Operating profit margin	0.2%	4.0%	7.0%	8.9%	11.1%	13.8%	13.9%	14.9%		14.4%
Recurring profit		-14	248	801	1,551	630	1,714	2,696	4,035	107.0%	3,770
	YoY	-	-48.8%	-3.0%	61.1%	-	591.3%	236.4%	160.2%		143.1%
	Recurring profit margin	-	3.8%	7.0%	9.3%	12.5%	14.7%	14.7%	15.7%		14.8%
Net income		95	205	562	1,048	410	1,131	1,767	2,727	116.1%	2,350
	YoY	-	-39.4%	9.7%	146.4%	330.4%	450.9%	214.5%	160.1%		124.2%
	Net margin	3.1%	3.1%	4.9%	6.3%	8.1%	9.7%	9.6%	10.6%		9.3%
Quarterly		FY12/20				FY12/21
(JPYmn)		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales		3,105	3,469	4,847	5,343	5,046	6,627	6,720	7,320
	YoY	9.8%	-14.1%	32.1%	43.3%	62.5%	91.0%	38.6%	37.0%
Gross profit		1,698	1,945	2,613	3,019	2,723	3,679	3,713	4,024
	YoY	15.5%	-11.1%	28.3%	49.2%	60.3%	89.1%	42.1%	33.3%
	Gross profit margin	54.7%	56.1%	53.9%	56.5%	54.0%	55.5%	55.3%	55.0%
SG&A expenses		1,693	1,687	2,082	2,319	2,163	2,625	2,770	2,761
	YoY	14.7%	-1.4%	21.2%	22.7%	27.7%	55.6%	33.0%	19.0%
	Gross profit margin	54.5%	48.6%	43.0%	43.4%	42.9%	39.6%	41.2%	37.7%
Operating profit		5	258	531	699	560	1,053	943	1,263
	YoY	-	-45.9%	66.5%	423.2%	-	308.3%	77.7%	80.5%
	Operating profit margin	0.2%	7.4%	11.0%	13.1%	11.1%	15.9%	14.0%	17.2%
Recurring profit		-14	261	554	750	630	1,084	983	1,339
	YoY	-	-48.3%	61.9%	448.0%	-	314.5%	77.5%	78.6%
	Recurring profit margin	-	7.5%	11.4%	14.0%	12.5%	16.4%	14.6%	18.3%
Net income		95	110	356	487	410	721	635	961
	YoY	-	-71.4%	105.9%	-	330.4%	555.3%	78.3%	97.4%
	Net margin	3.1%	3.2%	7.4%	9.1%	8.1%	10.9%	9.5%	13.1%

Source: Shared Research based on company data
Note: Amounts in the table may differ from company data due to differences in rounding methods.

Because Snow Peak primarily sells car camping goods, sales tend to be higher in Q2 and Q3 (spring to summer) than Q4 and Q1 (autumn to winter).

SG&A expenses

Cumulative			FY12/20				FY12/21
(JPYmn)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4
SG&A expenses			1,693	3,381	5,463	7,782	2,163	4,788	7,558
	YoY		14.7%	6.0%	11.3%	14.5%	27.7%	41.6%	38.4%
	Personnel expenses		779	1,553	2,429	3,397	944	2,153	3,316
		YoY	25.1%	14.1%	18.6%	20.5%	21.2%	38.7%	36.5%
	Rents		173	308	589	806	203	410	643
		YoY	5.4%	-5.7%	17.4%	18.0%	17.4%	33.1%	9.1%
	Depreciation		115	248	400	578	162	334	514
		YoY	3.6%	11.8%	19.9%	26.3%	40.8%	34.7%	28.6%
	Other		627	1,272	2,045	3,001	854	1,891	3,085
		YoY	8.2%	-0.5%	1.1%	5.8%	36.3%	48.6%	50.9%
Quarterly			FY12/20				FY12/21
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SG&A expenses			1,693	1,687	2,082	2,319	2,163	2,625	2,770
	YoY		14.7%	-1.4%	21.2%	22.7%	27.7%	55.6%	33.0%
	Personnel expenses		779	774	876	968	944	1,210	1,163
		YoY	25.1%	4.8%	27.5%	25.7%	21.2%	56.3%	32.7%
	Rents		173	135	282	217	203	207	233
		YoY	5.4%	-16.9%	60.2%	19.7%	17.4%	53.3%	-17.1%
	Depreciation		115	133	152	178	162	172	180
		YoY	3.6%	20.0%	36.0%	43.5%	40.8%	29.5%	18.7%
	Other		627	646	773	956	854	1,037	1,194
		YoY	8.2%	-7.7%	3.9%	17.5%	36.3%	60.6%	54.5%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Number of stores

		FY12/20				FY12/21
		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Directly managed stores			38	41	41	39	41	43
	Japan		30	33	33	31	33	33
	Overseas		8	8	8	8	8	10
In-store			72	70	70	73	73	71
	Japan		72	70	70	73	73	71
Shop-in-shop			197	208	208	210	219	228
	Japan		180	188	188	187	193	200
	Overseas		17	20	20	23	26	28
Entry stores			242	251	254	252	256	256

Source: Shared Research based on company data

Sales by business (including overseas sales)

Cumulative			FY12/20				FY12/21
(JPYmn)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4
Total sales			3,105	6,574	11,421	16,765	5,046	11,673	18,393
	YoY		9.8%	-4.2%	8.4%	17.6%	62.5%	77.6%	61.0%
	Outdoor		2,400	5,320	9,160	13,150	3,950	9,620	15,190
		YoY	14.1%	-2.9%	10.5%	19.3%	64.6%	80.8%	65.8%
	Apparel		410	710	1,290	2,100	620	1,120	1,780
		YoY	-7.4%	-6.6%	1.6%	13.5%	51.2%	57.7%	38.0%
	Urban Outdoor		30	80	100	180	60	130	220
		YoY	15.4%	0.0%	-23.1%	5.9%	100.0%	62.5%	120.0%
	Regional Revitalization		40	60	70	180	90	120	130
		YoY	-69.5%	-57.1%	-58.8%	-25.0%	125.0%	100.0%	85.7%
	Business Solutions		160	320	500	730	220	460	710
		YoY	31.1%	18.5%	13.6%	12.3%	37.5%	43.8%	42.0%
Quarterly			FY12/20				FY12/21
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Total sales			3,105	3,469	4,847	5,343	5,046	6,627	6,720
	YoY		9.8%	-14.1%	32.1%	43.3%	62.5%	91.0%	38.6%
	Outdoor		2,400	2,920	3,840	3,990	3,950	5,670	5,570
		YoY	14.1%	-13.5%	36.7%	46.2%	64.6%	94.2%	45.1%
	Apparel		410	300	580	810	620	500	660
		YoY	-7.4%	-5.4%	13.7%	39.7%	51.2%	66.7%	13.8%
	Urban Outdoor		30	50	20	80	60	70	90
		YoY	15.4%	-7.4%	-60.0%	100.0%	100.0%	40.0%	350.0%
	Regional Revitalization		40	20	10	110	90	30	10
		YoY	-69.5%	122.2%	-66.7%	57.1%	125.0%	50.0%	0.0%
	Business Solutions		160	160	180	230	220	240	250
		YoY	31.1%	8.1%	5.9%	9.5%	37.5%	50.0%	38.9%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.
Note: Business Solutions denotes sales from Snow Peak Business Solutions Inc., which is comprised of Camping Office sales and sales from the system development business of Heartis System & Consulting Inc. (acquired through absorption-type merger in January 2019).

Sales by region

Cumulative			FY12/20				FY12/21
(JPYmn)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4
Sales			3,105	6,574	11,421	16,765	5,046	11,673	18,393
	YoY		9.8%	-4.2%	8.4%	17.6%	62.5%	77.6%	61.0%
	Japan		2,560	5,170	9,090	13,440	3,950	8,980	14,120
		YoY	11.5%	-10.7%	1.0%	10.8%	54.3%	73.7%	55.3%
	US		160	420	720	1,060	350	800	1,300
		YoY	3.2%	20.0%	41.2%	45.2%	118.8%	90.5%	80.6%
	South Korea		180	570	1,000	1,340	370	1,080	1,720
		YoY	-3.7%	32.6%	69.5%	67.5%	105.6%	89.5%	72.0%
	Taiwan		130	260	360	510	180	360	530
		YoY	15.0%	23.8%	24.1%	34.2%	38.5%	38.5%	47.2%
	UK		20	40	80	130	90	200	330
		YoY	-	-	-	550.0%	350.0%	400.0%	312.5%
Quarterly			FY12/20				FY12/21
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales			3,105	3,469	4,847	5,343	5,046	6,627	6,720
	YoY		9.8%	-14.1%	32.1%	43.3%	62.5%	91.0%	38.6%
	Japan		2,560	2,610	3,920	4,350	3,950	5,030	5,140
		YoY	11.5%	-25.3%	22.1%	39.0%	54.3%	92.7%	31.1%
	US		160	260	300	340	350	450	500
		YoY	3.2%	33.3%	87.5%	54.5%	118.8%	73.1%	66.7%
	South Korea		180	390	430	340	370	710	640
		YoY	-3.7%	60.5%	168.8%	61.9%	105.6%	82.1%	48.8%
	Taiwan		130	130	100	150	180	180	170
		YoY	15.0%	34.0%	25.0%	66.7%	38.5%	38.5%	70.0%
	UK		20	20	40	50	90	110	130
		YoY	-	-	-	-	350.0%	450.0%	225.0%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Sales by sales channel (Japan)

Cumulative			FY12/20				FY12/21
(JPYmn)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4
Sales			2,560	5,170	9,090	13,440	3,950	8,980	14,120
	YoY		11.5%	-10.7%	1.0%	10.8%	54.3%	73.7%	55.3%
	Directly managed stores		620	1,060	1,950	3,060	810	1,810	2,870
		YoY	17.0%	-19.1%	-8.5%	4.8%	30.6%	70.8%	47.2%
		% of total	24.2%	20.5%	21.5%	22.8%	20.5%	20.2%	20.3%
	Snow Peak online store		130	480	710	970	280	630	990
		YoY	44.4%	140.0%	108.8%	102.1%	115.4%	31.3%	39.4%
		% of total	5.1%	9.3%	7.8%	7.2%	7.1%	7.0%	7.0%
	E-commerce (wholesale)		160	380	720	1,010	360	850	1,270
		YoY	-5.9%	-7.3%	7.5%	17.4%	125.0%	123.7%	76.4%
		% of total	6.3%	7.4%	7.9%	7.5%	9.1%	9.5%	9.0%
	In-store		590	1,260	2,300	3,400	850	2,020	3,070
		YoY	31.1%	-11.3%	5.5%	15.6%	44.1%	60.3%	33.5%
		% of total	23.0%	24.4%	25.3%	25.3%	21.5%	22.5%	21.7%
	Wholesale dealers		900	1,680	2,860	4,140	1,380	3,160	5,170
		YoY	15.4%	-17.2%	-4.7%	3.5%	53.3%	88.1%	80.8%
		% of total	35.2%	32.5%	31.5%	30.8%	34.9%	35.2%	36.6%
Quarterly			FY12/20				FY12/21
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales			2,560	2,610	3,920	4,350	3,950	5,030	5,140
	YoY		11.5%	-25.3%	22.1%	39.0%	54.3%	92.7%	31.1%
	Directly managed stores		620	440	890	1,110	810	1,000	1,060
		YoY	17.0%	-43.6%	8.5%	40.5%	30.6%	127.3%	19.1%
		% of total	24.2%	16.9%	22.7%	25.5%	20.5%	19.9%	20.6%
	Snow Peak online store		130	350	230	260	280	350	360
		YoY	44.4%	218.2%	64.3%	85.7%	115.4%	0.0%	56.5%
		% of total	5.1%	13.4%	5.9%	6.0%	7.1%	7.0%	7.0%
	E-commerce (wholesale)		160	220	340	290	360	490	420
		YoY	-5.9%	-8.3%	30.8%	52.6%	125.0%	122.7%	23.5%
		% of total	6.3%	8.4%	8.7%	6.7%	9.1%	9.7%	8.2%
	In-store		590	670	1,040	1,100	850	1,170	1,050
		YoY	31.1%	-30.9%	36.8%	44.7%	44.1%	74.6%	1.0%
		% of total	23.0%	25.7%	26.5%	25.3%	21.5%	23.3%	20.4%
	Wholesale dealers		900	780	1,180	1,280	1,380	1,780	2,010
		YoY	15.4%	-37.6%	21.6%	28.0%	53.3%	128.2%	70.3%
		% of total	35.2%	29.9%	30.1%	29.4%	34.9%	35.4%	39.1%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Full-year FY12/21 results

Sales: JPY25.7bn (+53.4% YoY)
Operating profit: JPY3.8bn (+155.8% YoY)
Recurring profit: JPY4.0bn (+160.2% YoY)
Net income attributable to owners of the parent: JPY2.7bn (+160.1% YoY)

In the outdoor industry, there was continued robust demand for outdoor leisure activities as activities that avoided the 3 C’s (confined spaces, crowds, and close-contact settings). Demand for camping also stayed strong, and it has moved up in the ranks of leisure activities thanks to exposure in the media and on social networking sites. Camping has become an all-year activity and increasingly diversified, with people now enjoying solo camping as well. As a result, the customer base for the company expanded.

The company in FY12/21 focused on bringing in new customers and turning existing customers into loyal customers in both the domestic and overseas markets. In Japan, the company sought to attract new customers by opening new stores and continuously promoting entry-level products, while at the same time working to bolster experienced-based spending (including at camp sites and events). In the overseas markets, the company worked to secure customers and sales space by raising brand awareness and strengthening the B2B and B2C channels in each of its operating areas.

In FY12/21, sales expanded in all sales channels and in all regions, driven mainly by increased sales in the wholesale channels (e-commerce wholesale, in-store sales, dealer wholesale). Mainstay stores benefitted not only from an expansion in sales space, but also from strong sales of outdoor goods.

Sales: Domestic business

In Japan, customer traffic, particularly in urban areas, deteriorated during the state of emergency, but favorable camping demand throughout the year resulted in sales in all channels improving. At wholesale channels, robust demand for outdoor goods in the overall market saw ongoing growth in selling space allocated to outdoor goods and the volume of products carried. Sales were strong at Snow Peak Business Solutions as it continued to focus on providing business support for digital transformation and human resources development for the group as a whole.

Sales: Overseas business

While some regions were affected by the resurgence in COVID-19 cases, overseas sales were still up YoY in all countries. Sales by country were as follows.

In South Korea, as in Japan, camping demand remained high, and sales were strong through all channels. In China, where the company is strengthening sales through cross-border e-commerce from South Korea, it has strengthened brand recognition by reaching out to the customer base through social media and developing shop-in-shop stores in local department stores. It has pursued these same strategies in South Korea. The success of these efforts resulted in sales rising YoY.

In Taiwan, the renewed spread of COVID-19 caused a decline in the number of customers visiting directly managed stores. However, camping demand remained high, contributing to strong sales of tents, cooking equipment, and eating utensils.

In the US, along with the September 2020 grand opening of the company’s North America headquarters, Snow Peak USA Headquarters (Global HQ4), the company worked to strengthen its retail marketing and tent product sales aimed at the entry-level market. This resulted in firm sales of tents and fire-pit (open-air grill) products. The company opened the restaurant "takibi" in May 2021 in the flagship store in Portland where Global HQ4 is located. The company expects this to further enhance brand recognition.

In the UK, sales at directly operated stores continued to suffer due to the lockdown in the London urban areas. In the wholesale channel, sales were strong thanks to improved brand recognition as a result of the company pursuing tie-ups with local companies and sales strategies focused on fire pits.

Full-year company forecast

		FY12/20			FY12/21			FY12/22
(JPYmn)		1H Act.	2H Act.	FY Act.	1H Act.	2H Act.	FY Act.	FY Est.
Sales		6,574	10,191	16,765	11,673	14,040	25,714	32,700
	YoY	-4.2%	37.8%	17.6%	77.6%	37.8%	53.4%	27.2%
Cost of goods sold		2,930	4,559	7,489	5,271	6,303	11,575
Gross profit		3,644	5,632	9,275	6,402	7,737	14,139
	YoY	-0.4%	38.7%	20.1%	75.7%	37.4%	52.4%
	Gross profit margin	55.4%	55.3%	55.3%	54.8%	55.1%	55.0%
SG&A expenses		3,381	4,401	7,782	4,788	5,531	10,319
	SG&A ratio	51.4%	43.2%	46.4%	41.0%	39.4%	40.1%
Operating profit		263	1,230	1,493	1,613	2,206	3,819	5,232
	YoY	-44.2%	171.9%	61.6%	513.5%	79.3%	155.8%	37.0%
	Operating profit margin	4.0%	12.1%	8.9%	13.8%	15.7%	14.9%	16.0%
Recurring profit		248	1,303	1,551	1,714	2,322	4,035	5,221
	YoY	-48.8%	172.2%	61.1%	591.3%	78.2%	160.2%	29.4%
	Recurring profit margin	3.8%	12.8%	9.3%	14.7%	16.5%	15.7%	16.0%
Net income		205	843	1,048	1,131	1,596	2,727	3,300
	YoY	-39.4%	873.8%	146.4%	450.9%	89.3%	160.1%	21.0%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.
Note: Net income refers to net income attributable to owners of the parent.

In FY12/22, the company forecasts sales of JPY32.7bn (+27.2% YoY), operating profit of JPY5.2bn (+37.0% YoY), recurring profit of JPY5.2bn (+29.4% YoY), and net income attributable to owners of the parent of JPY3.3bn (+21.0% YoY).

The company intends to focus on the following three areas in FY12/22

Creating customer acquisition opportunities by bolstering the channels (wholesale, experience-based locations) focused on creating new customers.

Using in-person and online strategies to encourage existing customers to become loyal customers

Maintaining product strategies focused on fire pits and strengthening the lineup of entry-level products, while simultaneously developing products, including furniture and high-end products, that meet the increasingly diverse needs of the company's customers. Through these efforts, the company aims to increase the number of new customers as well as the LTV of existing customers.

By region, the company will advance the following strategies.

In Japan, the company will continue to implement measures aimed at strengthening its sales channels, including building experience locations for its directly managed stores and expanding the wholesale store network. It will also work to increase the number of new customers and encourage existing customers to become loyal customers by strengthening its experiences network, which includes its partners, and by making effective use of the membership system launched in 2021.

In South Korea and Taiwan, the company will leverage the brand recognition it has built up to strengthen its sales channels, including by building experience locations for directly managed stores and expanding its wholesale store network.

In the US, the company on the wholesale side will leverage the strategic partnerships established in FY12/21 to develop store networks, camping-related product lineups, and communities. On the directly managed store side, the company will work to build its brand by advancing the engagement of loyal customers and expanding brand awareness through in-person and online strategies.

In the UK, the company will use its wholesale channels and online store to advance its development of the European market from FY12/22.

In China, the company will work to cement its customer base and business by expanding its existing sales channels (cross-border e-commerce and wholesale sales).

While noting the potential for skyrocketing material costs and ongoing yen depreciation to increase its cost of sales ratio, the company expects that ratio to remain at the same level shown in FY12/21 (45.0%) thanks to the positive effects from production transfers and product price hikes. In terms of SG&A expenses, the company expects an increase in depreciation and personnel expenses in line with the launch of new DX systems, the bolstering of its global organization, and an increase in locations, including spa resorts.

Snow Peak 7816