Isetan Mitsukoshi Holdings (3099) investor relations material

Executive summary

• Achieved record operating profit of 80.0 billion yen and profit of 76.0 billion yen for FY2025, marking the third consecutive year of record highs.

• Domestic customer sales growth and cost optimization offset declines in overseas sales, keeping gross sales flat year-over-year.

• The company advanced its transition from a traditional store-based model to an individual customer business, leveraging digital and in-store initiatives to deepen customer relationships.

• Net sales declined 1.8% year-over-year to 545.6 billion yen, but operating profit rose 4.9% to 80.0 billion yen and profit attributable to owners of parent surged 44.1% to 76.0 billion yen.

• Fiscal year ended March 31, 2026 saw a moderate recovery in Japan, with robust corporate earnings and wage growth supporting consumer sentiment despite persistent high prices and global uncertainties.

Financial highlights

• Operating profit rose 4.9% year-over-year to 80.0 billion yen; Q4 operating profit reached a record 21.9 billion yen.

• Profit attributable to owners of parent surged 44.1% year-over-year to 76.0 billion yen, aided by gains from share sales.

• Net sales declined 1.8% year-over-year to 545.6 billion yen.

• Comprehensive income was 73.76 billion yen, up 21.7% year-over-year.

• Cash and cash equivalents at year-end were 77.34 billion yen, up from 41.83 billion yen previous year.

Outlook and guidance

• FY2026 targets operating profit of 81.5 billion yen, aiming for a fourth consecutive record.

• Gross sales planned to rise 3.9% year-over-year to 1,350.0 billion yen; net sales to increase 2.6%.

• Profit is expected to decline to 61.5 billion yen due to absence of prior year’s one-time gains.

• Annual dividend forecast for FY2026 is 80.00 yen per share, up 10.00 yen from previous year.

• Total return policy targets a cumulative total return ratio of 70% or more for Phase I (FY2025–FY2027), combining dividends and treasury share acquisitions.