Quarterly trends and results

Cumulative		FY12/21				FY12/22				FY12/22
(JPYmn)		Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4	% of Est.	FY Est.
Sales		5,046	11,673	18,393	25,714	7,084	15,696	22,931	30,774	96.8%	31,800
	YoY	62.5%	77.6%	61.0%	53.4%	40.4%	34.5%	24.7%	19.7%		23.7%
Gross profit		2,723	6,402	10,115	14,139	3,774	8,804	12,753	16,824
	YoY	60.3%	75.7%	61.7%	52.4%	38.6%	37.5%	26.1%	19.0%
	Gross profit margin	54.0%	54.8%	55.0%	55.0%	53.3%	56.1%	55.6%	54.7%
SG&A expenses		2,163	4,788	7,558	10,319	2,839	6,245	9,643	13,149
	YoY	27.7%	41.6%	38.4%	32.6%	31.3%	30.4%	27.6%	27.4%
	SG&A ratio	42.9%	41.0%	41.1%	40.1%	40.1%	39.8%	42.1%	42.7%
Operating profit		560	1,613	2,557	3,819	935	2,559	3,110	3,675	95.5%	3,850
	YoY	-	513.5%	222.1%	155.8%	67.0%	58.6%	21.6%	-3.8%		0.8%
	Operating profit margin	11.1%	13.8%	13.9%	14.9%	13.2%	16.3%	13.6%	11.9%		12.1%
Recurring profit		630	1,714	2,696	4,035	976	2,586	3,162	3,607	92.6%	3,897
	YoY	-	591.3%	236.4%	160.2%	54.9%	50.9%	17.3%	-10.6%		-3.4%
	Recurring profit margin	12.5%	14.7%	14.7%	15.7%	13.8%	16.5%	13.8%	11.7%		12.3%
Net income		410	1,131	1,767	2,727	642	1,712	2,078	1,946	78.5%	2,480
	YoY	330.4%	450.9%	214.5%	160.1%	56.4%	51.4%	17.6%	-28.6%		-9.1%
	Net margin	8.1%	9.7%	9.6%	10.6%	9.1%	10.9%	9.1%	6.3%		7.8%
Quarterly		FY12/21				FY12/22
(JPYmn)		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales		5,046	6,627	6,720	7,320	7,084	8,612	7,234	7,843
	YoY	62.5%	91.0%	38.6%	37.0%	40.4%	30.0%	7.7%	7.1%
Gross profit		2,723	3,679	3,713	4,024	3,774	5,029	3,949	4,071
	YoY	60.3%	89.1%	42.1%	33.3%	38.6%	36.7%	6.4%	1.2%
	Gross profit margin	54.0%	55.5%	55.3%	55.0%	53.3%	58.4%	54.6%	51.9%
SG&A expenses		2,163	2,625	2,770	2,761	2,839	3,405	3,399	3,506
	YoY	27.7%	55.6%	33.0%	19.0%	31.3%	29.7%	22.7%	27.0%
	SG&A ratio	42.9%	39.6%	41.2%	37.7%	40.1%	39.5%	47.0%	44.7%
Operating profit		560	1,053	943	1,263	935	1,624	551	565
	YoY	-	308.3%	77.7%	80.5%	67.0%	54.2%	-41.6%	-55.2%
	Operating profit margin	11.1%	15.9%	14.0%	17.2%	13.2%	18.9%	7.6%	7.2%
Recurring profit		630	1,084	983	1,339	976	1,610	577	445
	YoY	-	314.5%	77.5%	78.6%	54.9%	48.5%	-41.3%	-66.8%
	Recurring profit margin	12.5%	16.4%	14.6%	18.3%	13.8%	18.7%	8.0%	5.7%
Net income		410	721	635	961	642	1,070	366	-132
	YoY	330.4%	555.3%	78.3%	97.4%	56.4%	48.5%	-42.5%	-
	Net margin	8.1%	10.9%	9.5%	13.1%	9.1%	12.4%	5.1%	-

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			FY12/21				FY12/22
(JPYmn)			Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4
SG&A expenses			2,163	4,788	7,558	10,319	2,839	6,245	9,643	13,149
	YoY		27.7%	41.6%	38.4%	32.6%	31.3%	30.4%	27.6%	27.4%
	Personnel expenses		944	2,153	3,316	4,528	1,271	2,771	4,213
		YoY	21.2%	38.7%	36.5%	33.3%	34.6%	28.7%	27.1%
	Rents		203	410	643	874	212	454	690
		YoY	17.4%	33.1%	9.1%	8.5%	4.6%	10.8%	7.4%
	Depreciation		162	334	514	703	206	471	742
		YoY	40.8%	34.7%	28.6%	21.7%	27.3%	41.1%	44.3%
	Other		854	1,891	3,085	4,213	1,150	2,549	3,998
		YoY	36.3%	48.6%	50.9%	40.4%	34.6%	34.8%	29.6%
Quarterly			FY12/21				FY12/22
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SG&A expenses			2,163	2,625	2,770	2,761	2,839	3,405	3,399	3,506
	YoY		27.7%	55.6%	33.0%	19.0%	31.3%	29.7%	22.7%	27.0%
	Personnel expenses		944	1,210	1,163	1,212	1,271	1,500	1,442
		YoY	21.2%	56.3%	32.7%	25.2%	34.6%	24.0%	24.0%
	Rents		203	207	233	232	212	242	236
		YoY	17.4%	53.3%	-17.1%	6.7%	4.6%	16.8%	1.4%
	Depreciation		162	172	180	189	206	265	271
		YoY	40.8%	29.5%	18.7%	6.0%	27.3%	54.1%	50.1%
	Other		854	1,037	1,194	1,128	1,150	1,399	1,449
		YoY	36.3%	60.6%	54.5%	18.1%	34.6%	34.9%	21.4%

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

Number of stores

		FY12/21				FY12/22
		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Directly managed stores		39	41	43	43	42	45	45	-
	Japan	31	33	33	33	32	35	35	35
	Overseas	8	8	10	10	10	10	10	-
In-store		73	73	71	71	74	79	78
	Japan	73	73	71	71	72	77	76	74
Shop-in-shop		210	219	228	235	236	241	246	-
	Japan	187	193	200	206	208	213	216	226
	Overseas	23	26	28	29	28	28	30	-
Entry stores		252	256	256	259	260	260	258	-

Source: Shared Research based on company data

Sales by business (including overseas sales)

Cumulative			FY12/21				FY12/22
(JPYmn)			Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4
Total sales			5,046	11,673	18,393	25,714	7,084	15,696	22,931	30,774
	YoY		62.5%	77.6%	61.0%	53.4%	40.4%	34.5%	24.7%	19.7%
	Outdoor		3,950	9,620	15,190	20,980	5,790	13,090	18,780
		YoY	64.6%	80.8%	65.8%	59.5%	46.6%	36.1%	23.6%
	Apparel		620	1,120	1,780	2,590	770	1,420	2,220
		YoY	51.2%	57.7%	38.0%	23.3%	24.2%	26.8%	24.7%
	Urban Outdoor		60	130	220	290	50	130	190
		YoY	100.0%	62.5%	120.0%	61.1%	-16.7%	0.0%	-13.6%
	Regional Revitalization		90	120	130	210	40	50	110
		YoY	125.0%	100.0%	85.7%	16.7%	-55.6%	-58.3%	-15.4%
	Business Solutions		220	460	710	990	290	570	850
		YoY	37.5%	43.8%	42.0%	35.6%	31.8%	23.9%	19.7%
	Campground		40	100	180	260	50	170	330
		YoY	0.0%	66.7%	5.9%	4.0%	25.0%	70.0%	83.3%
	Snow Peak EAT		60	120	180	370	100	260	450
		YoY	100.0%	140.0%	38.5%	68.2%	66.7%	116.7%	150.0%
Quarterly			FY12/21				FY12/22
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Total sales			5,046	6,627	6,720	7,320	7,084	8,612	7,234	7,843
	YoY		62.5%	91.0%	38.6%	37.0%	40.4%	30.0%	7.7%	7.1%
	Outdoor		3,950	5,670	5,570	5,790	5,790	7,300	5,690
		YoY	64.6%	94.2%	45.1%	45.1%	46.6%	28.7%	2.2%
	Apparel		620	500	660	810	770	650	800
		YoY	51.2%	66.7%	13.8%	0.0%	24.2%	30.0%	21.2%
	Urban Outdoor		60	70	90	70	50	80	60
		YoY	100.0%	40.0%	350.0%	-12.5%	-16.7%	14.3%	-33.3%
	Regional Revitalization		90	30	10	80	40	10	60
		YoY	125.0%	50.0%	0.0%	-27.3%	-55.6%	-66.7%	500.0%
	Business Solutions		220	240	250	280	290	280	280
		YoY	37.5%	50.0%	38.9%	21.7%	31.8%	16.7%	12.0%
	Campground		40	60	80	80	50	120	160
		YoY	0.0%	200.0%	-27.3%	0.0%	25.0%	100.0%	100.0%
	Snow Peak EAT		60	60	60	190	100	160	190
		YoY	100.0%	200.0%	-25.0%	111.1%	66.7%	166.7%	216.7%

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			FY12/21				FY12/22
(JPYmn)			Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4
Sales			5,046	11,673	18,393	25,714	7,084	15,696	22,931	30,774
	YoY		62.5%	77.6%	61.0%	53.4%	40.4%	34.5%	24.7%	19.7%
	Japan		3,950	8,980	14,120	19,560	5,210	11,240	16,050
		YoY	54.3%	73.7%	55.3%	45.5%	31.9%	25.2%	13.7%
	US		350	800	1,300	1,850	600	1,450	2,150
		YoY	118.8%	90.5%	80.6%	74.5%	71.4%	81.3%	65.4%
	South Korea		370	1,080	1,720	2,430	680	1,780	2,830
		YoY	105.6%	89.5%	72.0%	81.3%	83.8%	64.8%	64.5%
	Taiwan		180	360	530	780	270	560	820
		YoY	38.5%	38.5%	47.2%	52.9%	50.0%	55.6%	54.7%
	UK		90	200	330	500	160	320	520
		YoY	350.0%	400.0%	312.5%	284.6%	77.8%	60.0%	57.6%
Quarterly			FY12/21				FY12/22
(JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales			5,046	6,627	6,720	7,320	7,084	8,612	7,234	7,843
	YoY		62.5%	91.0%	38.6%	37.0%	40.4%	30.0%	7.7%	7.1%
	Japan		3,950	5,030	5,140	5,440	5,210	6,030	4,810
		YoY	54.3%	92.7%	31.1%	25.1%	31.9%	19.9%	-6.4%
	US		350	450	500	550	600	850	700
		YoY	118.8%	73.1%	66.7%	61.8%	71.4%	88.9%	40.0%
	South Korea		370	710	640	710	680	1,100	1,050
		YoY	105.6%	82.1%	48.8%	108.8%	83.8%	54.9%	64.1%
	Taiwan		180	180	170	250	270	290	260
		YoY	38.5%	38.5%	70.0%	66.7%	50.0%	61.1%	52.9%
	UK		90	110	130	170	160	160	200
		YoY	350.0%	450.0%	225.0%	240.0%	77.8%	45.5%	53.8%

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				FY12/21				FY12/22
(JPYmn)				Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4
Sales				3,950	8,980	14,120	19,560	5,210	11,240	16,050
	YoY			54.3%	73.7%	55.3%	45.5%	31.9%	25.2%	13.7%
	Directly managed stores			810	1,810	2,870	4,150	860	2,090	3,130
		YoY		30.6%	70.8%	47.2%	35.6%	6.2%	15.5%	9.1%
		% of total		20.5%	20.2%	20.3%	21.2%	16.5%	18.6%	19.5%
	Snow Peak online store			280	630	990	1,380	320	790	1,320
		YoY		115.4%	31.3%	39.4%	42.3%	14.3%	25.4%	33.3%
		% of total		7.1%	7.0%	7.0%	7.1%	6.1%	7.0%	8.2%
	In-store			850	2,020	3,070	4,250	880	2,360	340
		YoY		44.1%	60.3%	33.5%	25.0%	3.5%	16.8%	-88.9%
		% of total		21.5%	22.5%	21.7%	21.7%	16.9%	21.0%	2.1%
	Wholesale to dealers (includes e-commerce [wholesale])			1,740	4,010	6,440	8,660	2,850	5,460	7,550
		YoY		64.2%	94.7%	79.9%	68.2%	63.8%	36.2%	17.2%
		% of total		44.1%	44.7%	45.6%	44.3%	54.7%	48.6%	47.0%
		E-commerce (wholesale)		360	850	1,270	1,690
			YoY	125.0%	123.7%	76.4%	67.3%
			% of total	9.1%	9.5%	9.0%	8.6%
		Wholesale to dealers		1,380	3,160	5,170	6,970
			YoY	53.3%	88.1%	80.8%	68.4%
			% of total	34.9%	35.2%	36.6%	35.6%
Quarterly				FY12/21				FY12/22
(JPYmn)				Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales				3,950	5,030	5,140	5,440	5,210	6,030	4,810
	YoY			54.3%	92.7%	31.1%	25.1%	31.9%	19.9%	-6.4%
	Directly managed stores			810	1,000	1,060	1,280	860	1,230	1,040
		YoY		30.6%	127.3%	19.1%	15.3%	6.2%	23.0%	-1.9%
		% of total		20.5%	19.9%	20.6%	23.5%	16.5%	20.4%	21.6%
	Snow Peak online store			280	350	360	390	320	470	530
		YoY		115.4%	0.0%	56.5%	50.0%	14.3%	34.3%	47.2%
		% of total		7.1%	7.0%	7.0%	7.2%	6.1%	7.8%	11.0%
	In-store			850	1,170	1,050	1,180	880	1,480	-2,020
		YoY		44.1%	74.6%	1.0%	7.3%	3.5%	26.5%	-292.4%
		% of total		21.5%	23.3%	20.4%	21.7%	16.9%	24.5%	-42.0%
	Wholesale to dealers (includes e-commerce [wholesale])			1,740	2,270	2,430	2,220	2,850	2,610	2,090
		YoY		64.2%	127.0%	59.9%	41.4%	63.8%	15.0%	-14.0%
		% of total		44.1%	45.1%	47.3%	40.8%	54.7%	43.3%	43.5%
		E-commerce (wholesale)		360	490	420	420
			YoY	125.0%	122.7%	23.5%	44.8%
			% of total	9.1%	9.7%	8.2%	7.7%
		Wholesale to dealers		1,380	1,780	2,010	1,800
			YoY	53.3%	128.2%	70.3%	40.6%
			% of total	34.9%	35.4%	39.1%	33.1%

Source: Shared Research based on company data
Notes: Figures may differ from company data due to differences in rounding methods.
Sales previously (until FY12/21) disclosed as e-commerce (wholesale) will be included in wholesale dealers from FY12/22.

Full-year FY12/22 results

Sales: JPY30.8bn (+19.7% YoY)
Operating profit: JPY3.7bn (-3.8% YoY)
Recurring profit: JPY3.6bn (-10.6% YoY)
Net income attributable to owners of the parent: JPY1.9bn (-28.6% YoY)

The company applied the Accounting Standard for Revenue Recognition from the beginning of Q1 FY03/22. As a result of the change in accounting policy, sales, CoGS, and SG&A expenses in FY12/22 decreased by JPY266mn, JPY89mn, and JPY200mn, respectively, while operating profit, recurring profit, and net income attributable to owners of the parent each increased by JPY23mn.

In the outdoor industry, leisure activities that avoid close-contact settings continued to enjoy great popularity both in Japan and overseas in 2022. The company believes that the number of people enjoying the outdoors is on the rise, especially in the form of family camping.

Snow Peak is maintaining its focus on attracting new customers and developing loyalty among its current customers, both in Japan and overseas.

Domestic market: While focusing on attracting new customers through efforts such as opening new stores and developing spas, the company will continue working to boost customer engagement and encourage experience-based spending through its campgrounds and events.

Overseas market: To help raise brand awareness in each of its operating areas, the company is focused on strengthening its sales channels and enhancing the value of its experience-based programs.

Sales increased in FY12/22. Strong ongoing camping demand led to greater demand for the company's products, with robust 1H sales that were up 34.5% YoY. However, camping demand for summer 2022 was lower YoY; along with extremely hot weather, it was the first summer in three years with no COVID-19 related restrictions on activities, so people had more options for non-camping leisure activities like travel. As a result, sales grew only 7.4% YoY in 2H, largely due to backed up inventory at wholesalers of brands other than Snow Peak. Sales of Snow Peak’s products also declined due to lackluster success with sell-ins.

Operating profit declined due to higher CoGS resulting from the weaker yen, as well as an increase in SG&A expenses from factors including investment in human resources with future growth in mind. Net income attributable to owners of the parent was also down. This was due to factors including the decline in operating profit; foreign exchange losses of JPY265mn (versus foreign exchange gains of JPY46mn in FY12/21); and impairment losses of JPY776mn on fixed assets, including JPY643mn on stores in Japan and JPY132mn on its subsidiary in the UK.

Sales: Domestic business

In Japan, customer traffic visiting directly managed stores increased as the COVID-19 pandemic ebbed, demonstrating that camping is still much in demand. Increasing the number of stores resulted in the company’s point card system having more, mostly entry-level members. Even so, the camping market environment has changed since the summer of 2022, and the company plans to continue attracting new campers while developing customer loyalty.

Sales: Overseas business

In the overseas business, consumer activity picked up, and sales exceeded FY12/21 in all regions Snow Peak operates. Sales by country or region were as follows.

In South Korea, sales were strong. Outdoor culture has taken root in the society and Snow Peak’s brand awareness is growing. Sales in China, where the company operates from Korea through cross-border e-commerce, exceeded those of FY12/21. In October 2022, the company established joint venture Snow Peak Nature (Beijing) Cultural Development Co., Ltd. in China with local companies.

In Taiwan, which has an established culture of hiking and camping, sales were strong. Snow Peak is looking to raise its brand profile and accelerate the expansion of its operations there, with the aim of further growing sales in the Taiwanese market over the long term. Toward this end, in January 2023 the company established a locally incorporated subsidiary (Snow Peak Taiwan, Inc.) to oversee its various businesses in Taiwan.

Sales in the US were robust. In October 2022, the company moved its directly managed store in New York City from Manhattan to Brooklyn (Snow Peak Brooklyn). This store is larger than the previous one, making displays of items that take up more space like tents and tarps possible.

Sales in the UK were robust. Snow Peak is expanding its wholesale business in the UK, and is also considering expanding into the EU.

Full-year company forecast

		FY12/21			FY12/22			FY12/23
(JPYmn)		1H Act.	2H Act.	FY Act.	1H Act.	2H Act.	FY Act.	FY Est.
Sales		11,673	14,040	25,714	15,696	15,078	30,774	36,000
	YoY	77.6%	37.8%	53.4%	34.5%	7.4%	19.7%	17.0%
Cost of goods sold		5,271	6,303	11,575	6,893	7,057	13,950
Gross profit		6,402	7,737	14,139	8,804	8,020	16,824
	YoY	75.7%	37.4%	52.4%	37.5%	3.7%	19.0%
	Gross profit margin	54.8%	55.1%	55.0%	56.1%	53.2%	54.7%
SG&A expenses		4,788	5,531	10,319	6,245	6,904	13,149
	SG&A ratio	41.0%	39.4%	40.1%	39.8%	45.8%	42.7%
Operating profit		1,613	2,206	3,819	2,559	1,116	3,675	5,000
	YoY	513.5%	79.3%	155.8%	58.6%	-49.4%	-3.8%	36.1%
	Operating profit margin	13.8%	15.7%	14.9%	16.3%	7.4%	11.9%	13.9%
Recurring profit		1,714	2,322	4,035	2,586	1,021	3,607	4,930
	YoY	591.3%	78.2%	160.2%	50.9%	-56.0%	-10.6%	36.7%
	Recurring profit margin	14.7%	16.5%	15.7%	16.5%	6.8%	11.7%	13.7%
Net income		1,131	1,596	2,727	1,712	234	1,946	2,849
	YoY	450.9%	89.3%	160.1%	51.4%	-85.3%	-28.6%	46.4%

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.

For FY12/23, the company forecasts sales of JPY36.0bn (+17.0% YoY), operating profit of JPY5.0bn (+36.1% YoY), recurring profit of JPY4.9bn (+36.7% YoY), and net income attributable to owners of the parent of JPY2.8bn (+46.4% YoY).

In FY12/23, Snow Peak plans to focus on its growth strategy and on enhancing its management foundation under a theme of "growth without excess."

Growth strategy: To attract new campers while developing customer loyalty, in Japan the company plans to develop campgrounds, expand its involvement in experience-based events, and further build its customer community. In the US and China, the company plans to establish brand positioning through raising the profile of Snow Peak’s camping style while building and further developing its sales and logistics networks.

Enhance the management foundation: Snow Peak is considering the following initiatives to help it achieve a robust management structure.

Optimize the global supply chain: This effort would optimize supply capacity and logistics networks while expanding areas of production.

Strengthen the management system: This effort would build and reinforce a multifaceted, global system with aims of improving profitability and strengthening the company’s system of governance.

Bolster the HR strategy: Through developing a human resources strategy with the “power of camping” at its core, this effort would help Snow Peak deliver its unique brand of value and customer service. It would also improve the work environment by reinforcing Snow Peak’s human resources development system and reviewing its approach to compensation.

Review sales networks: This effort would improve profitability through measures like a review of low-margin stores and changing the format of its restaurant business. It would also involve restructuring its strategies regarding retail and wholesale sales channels.

In terms of expenses and cost of goods sold, although the company expects factors like soaring raw material prices and fluctuating exchange rates to continue pushing up the cost ratio, it also anticipates that measures like reviewing costs, revising prices, and establishing forward exchange contracts will help improve the situation over that of FY12/22. The company expects SG&A expenses to rise due to personnel expenses related to across-the-board base pay increases.

Snow Peak 7816