Isetan Mitsukoshi Holdings (3099) Q2 2025 earnings summary

Executive summary

• Gross and net sales rose sharply, with Q2 net sales at ¥264.1 billion (+6.3%) and operating profit at ¥34.9 billion (+72.8%), driven by strong domestic department store performance, inbound demand, and successful marketing events.

• All major business segments, including department store, credit & finance, and real estate, reported revenue and profit growth.

• Cost structure reforms and scientific analysis led to lower SG&A expenses year-over-year, despite higher sales-linked costs.

• Operating, recurring, and net income all reached record highs since the group's integration.

• Growth was supported by increased identified customers, robust tax-free sales, and strong inbound and domestic demand.

Financial highlights

• Q2 gross sales: ¥619.1 billion (+10.3%); net sales: ¥264.0 billion (+6.3%).

• Operating income: ¥34.8 billion (+72.8%); net income: ¥25.3 billion (+70.8%).

• Major flagship stores, especially Ginza (+25.8%) and Shinjuku (+16.4%), saw significant sales growth.

• Basic EPS increased to ¥67.94 from ¥38.92 year-on-year.

• SG&A expenses reduced by ¥800 million year-over-year due to ongoing cost reforms.

Outlook and guidance

• Full-year gross sales forecast unchanged at ¥1,320 billion (+7.8%), with operating income of ¥72 billion (+32.4%).

• Net income projected at ¥58 billion (+4.4%), EPS at ¥155.18, with continued focus on cost control and strategic investments.

• Flagship stores' sales plans revised upward; Shinjuku expected to exceed ¥424 billion, Ginza ¥130 billion.

• Inbound sales expected to grow 63% year-over-year, reflecting robust tourism demand.

• No changes to previously announced guidance; gross sales forecast (pre-revenue recognition standard) is ¥1,320,000 million (+7.8%).