Executive Summary

• At the analyst briefing in Hong Kong on March 31, Golden Eagle’s management team discussed the FY16 results and outlined the group’s future strategy, which is to focus on lifestyle concepts, expand its store network and enhance its omnichannel offering.
• Total gross sales proceeds was ¥16,399.3 million for FY16, up 0.7% year over year. By product category, athleisure and consumer appliances outperformed, while menswear and womenswear underperformed.
• Gross margin from concessionaire sales and direct sales increased by 0.1% to 17.8% in FY16. The modest margin improvement was attributable to management’s focus on product sales with favorable margins, which was partially offset by an increase in the sales contribution from younger stores that have lower commission rates.