Isetan Mitsukoshi Holdings (3099) Q4 2025 earnings summary

Executive summary

• Achieved record operating profit of 76.3 billion yen for FY2024, up 40% year-over-year, marking a second consecutive record high since the merger.

• Ordinary profit rose by 28.2 billion yen to 88.1 billion yen (+47.2% YoY), while profit attributable to owners declined 5% to 52.8 billion yen due to tax adjustments and impairment losses.

• Gross sales increased 6.5% year-over-year to 1,303.6 billion yen; net sales reached 555.5 billion yen (+3.6% YoY).

• The company is transitioning from a store-based to an individual customer business model, leveraging identified customer data and digital transformation.

• Significant progress made in increasing identified customer sales and annual purchasing per person.

Financial highlights

• Gross sales: 1,303.6 billion yen (+6.5% YoY); net sales: 555.5 billion yen (+3.6% YoY); gross profit: 337.7 billion yen.

• Operating profit: 76.3 billion yen (+40% YoY); ordinary profit: 88.1 billion yen (+47.2% YoY); operating profit margin: 13.7%.

• Profit attributable to owners: 52.8 billion yen (95% YoY), impacted by tax adjustments and impairment losses.

• Isetan Shinjuku Main Store gross sales: 421.2 billion yen (+12.1% YoY); all major regional stores reported revenue growth.

• Cash flows from operating activities increased to 89.6 billion yen; cash and cash equivalents at year-end were 41.8 billion yen.

Outlook and guidance

• FY2025 targets operating profit of 78.0 billion yen (+2.2% YoY) and profit attributable to owners of 60.0 billion yen (+13.6% YoY), both record highs.

• Gross sales projected at 1,320 billion yen (+1.3% YoY); ordinary profit expected to decrease due to lower equity method investment gains.

• Annual dividend for FY2025 planned at 60 yen per share, up 6 yen from previous year; share buyback of up to 30.0 billion yen (20 million shares) announced.

• Focus on expanding identified customer base, digital transformation, and cost control under the new medium-term plan.

• Targeting a total return ratio of over 70% in the next medium-term plan phase.