Isetan Mitsukoshi Holdings (3099) Q1 2026 earnings summary

Executive summary

• Domestic customer sales exceeded expectations, driven by increased per customer spending and identification initiatives.

• Overseas customer sales declined year-over-year due to lower per customer spending, following a strong prior year.

• Net sales for the quarter ended June 30, 2025, were ¥124,193 million, down 4.2% year-over-year; operating profit was ¥15,650 million, down 17.1% year-over-year.

• Ordinary profit declined 19.5% year-over-year to ¥17,079 million, while profit attributable to owners of parent rose 37.5% to ¥18,838 million, driven by extraordinary income from a share transfer.

• The company is executing a new medium-term plan focused on transitioning from a mass-market store business to an individual customer business and urban community development.

Financial highlights

• Q1 gross sales: ¥301.2 billion (94.8% YoY), net sales: ¥124.1 billion (95.8% YoY), gross profit: ¥76.9 billion (95.6% YoY).

• Operating profit: ¥15.6 billion (82.9% YoY), ordinary profit: ¥17.0 billion (80.5% YoY).

• Profit attributable to owners: ¥18.8 billion (137.5% YoY), boosted by sale of affiliated company shares.

• Basic earnings per share increased to ¥51.86 from ¥36.55 year-over-year.

• Total assets at June 30, 2025, were ¥1,172,178 million, down ¥33,548 million from March 31, 2025, mainly due to a decrease in investment securities.

Outlook and guidance

• Full-year plan unchanged: operating profit ¥78.0 billion, profit ¥60.0 billion.

• Full-year net sales forecast is ¥557,000 million (+0.3% YoY), with operating profit of ¥78,000 million (+2.2%) and profit attributable to owners of parent of ¥60,000 million.

• Basic earnings per share for the full year is projected at ¥173.71.

• Annual dividend forecast is ¥60.00 per share, up from ¥54.00 in the previous year.

• Flexible cost control to be implemented in line with sales trends from Q2 onward.