Takashimaya Company (8233) investor relations material

Executive summary

• H1 total operating revenue rose 6.2% to ¥517,465m; operating profit increased ¥3.9bn to ¥27,521m, and profits at every level exceeded April forecasts.

• Domestic department stores, overseas operations and Finance supported growth; full-year operating, business and ordinary profit forecasts were raised.

• Priorities include next-generation shopping centers, overseas expansion, Finance, integrated in-store and online offerings, digital transformation, ESG and human-capital management. FY2031 business-profit targets: ¥31.0bn, ¥10.0bn and ¥10.0bn for the three growth areas.

Financial highlights

• H1 total operating revenue was ¥517,465m, up 6.2% under the previous revenue-recognition standard; operating revenue was ¥244,131m, up 3.7%. Gross profit was ¥152.0bn, up 8.5%, and SG&A was ¥124.4bn, up 4.6%.

• Operating profit reached ¥27,521m, up 16.4% and ¥3.9bn; business profit was ¥30,474m, up 21.2%, and ordinary profit ¥28,066m, up 27.5%.

• Profit attributable to owners of parent declined 24.5% to ¥16,014m, ¥0.7bn above April forecast; prior-year asset-sale gains drove the decline. EPS was ¥54.65 versus ¥70.14.

• Operating cash flow was ¥48,555m versus ¥14,560m a year earlier; cash and cash equivalents rose ¥13,976m from FY-end to ¥91,417m.

• Comprehensive income increased to ¥18,253m from ¥17,393m YoY.

Outlook and guidance

• FY2026 forecasts: total operating revenue ¥1,080,000m, operating profit ¥59,000m, business profit ¥66,000m and ordinary profit ¥60,000m; operating profit was raised ¥1.5bn and ordinary profit ¥3.0bn from April.

• Profit attributable to owners of parent remains forecast at ¥38,000m; expected asset-sale gains are set to offset a one-time extraordinary loss. EPS forecast remains ¥129.68.

• Japan department-store revenue forecast was raised to ¥885.4bn; full-year domestic customer sales are forecast up 6% and inbound sales up 7%. Overseas department stores and Finance forecasts increased; Construction & Design was revised down.

• Annual dividend guidance rose ¥4 to ¥44 per share, comprising ¥22 interim and ¥22 year-end; FY2026 payout ratio is 33.9% and DOE 2.75%.