Takashimaya Company (8233) Q3 2025 earnings summary

Executive summary

• Achieved record high operating and ordinary profit for two consecutive years, and record high profit attributable to owners of parent for three consecutive years on a consolidated basis.

• All profit categories outperformed the previous year, driven by strong domestic sales and record inbound traveler demand in Department Stores in Japan.

• Cost reduction measures, balanced business portfolio, and increased orders in Construction & Design and Vietnam's Overseas Commercial Property Development contributed to higher profits.

Financial highlights

• Q3 cumulative total operating revenue: ¥754.3bn, up 10.5% YoY; gross profit: ¥219.3bn, up 16.3% YoY.

• Operating profit: ¥41.5bn, up ¥8.3bn YoY; operating profit margin improved by 0.6 points to 5.5%.

• Ordinary profit: ¥41.9bn, up ¥6.0bn YoY; profit attributable to owners of parent: ¥26.1bn, up ¥1.8bn YoY.

• SG&A expenses increased 8.0% YoY to ¥177.8bn, but SG&A to revenue ratio improved by 1.3 points to 23.6%.

Outlook and guidance

• Full-year forecast unchanged from October: total operating revenue projected at ¥1,035.0bn (+8.7% YoY), operating profit at ¥55.0bn (+9.1% YoY), profit attributable to owners of parent ¥38.0bn (+6.4% YoY).

• Inbound sales target for Department Stores in Japan remains at ¥115.0bn.

• ROIC forecast at 6.2% (vs. 5.5% prior year), ROE at 8.3% (vs. 7.3%).