TAKASHIMAYA COMPANY, LIMITED Financial Results for the First Quarter of the Fiscal Year
Ending February 28, 2025 (FY2024)
June 28, 2024
Takashimaya Co., Ltd.
Agenda
- Financial Results for Q1 of FY Ending Feb 2025 (FY2024)
- Full Year Forecasts for FY Ending Feb 2025 (FY2024)
2
Financial Results for Q1 of FY Ending Ⅰ . Feb 2025 (FY2024)
- Key Points of Performance
- Consolidated Performance
- Business-specificResults
3
1. Key Points of Q1 Performance
○On a consolidated basis, all profit categories outperformed assumptions in April forecasts
Since disclosing quarterly results, we have achieved record highs for operating profit and ordinary profit for two consecutive years
○The scope of growth in operating profit from Department Stores in
Japan was particularly significant. In addition to strong net sales
from customers in Japan, higher-than-expected sales from
inbound tourists also contributed to increased performance
○Overseas business profit was propelled by the continued trend
towards yen depreciation
○Commercial Property Development in Japan, Finance, and Others
trended on par with assumptions
4
2. Consolidated Performance
- Operating revenue grew significantly from the previous year thanks to Department Stores in Japan
- SG&A ratio improved. After concluding the cost-optimization program, we continued to implement cost reduction measures
- Since disclosing quarterly results, we have achieved record highs for operating profit and ordinary profit for two consecutive years
(billion JPY) | Q1 | YoY | ||
Change | ||||
Total operating revenue | 255.8 | +17.6% | ||
Operating revenue | 120.1 | +13.8% | ||
SG&A expenses | 56.7 | +3.0 | ||
SG&A to total operating | 22.2% | (2.5) | ||
revenue ratio | ||||
Operating profit | 17.3 | +6.3 | ||
Operating profit to total operating | 6.8% | +1.7 | ||
revenue ratio | ||||
Ordinary profit | 17.8 | +6.2 | ||
Profit attributable to | 12.8 | +4.3 | ||
owners of parent
- We apply the Accounting Standard for Revenue Recognition from FY2022. As such, operating revenue based on recording methods applied through FY2021 are indicated as total operating revenue.
5
3-1.Business-specific Performance (Overview)
- All business recorded increased revenue and profit excluding Finance, which recorded a minor decrease in profits due to the impact of forward-looking investments
- Department Stores in Japan, our core business, recorded revenue and profit growth that significantly outperformed assumptions
- Overseas Department Stores and Overseas Commercial Property Development saw performance shored up by continued yen depreciation
*Top row : Operating revenue, Bottom row : Operating profit
(billion JPY)
Department Stores in Japan
Overseas Department Stores
Commercial Property Development in Japan
Overseas Commercial Property Development
YoY
Q1
Change
- +11.3%
- + 4.8
8.5 +8.1%
- + 0.1
- +5.4%
- + 0.2
4.0 +22.2%
1.6 + 0.4
(billion JPY)
Finance
Others
Consolidated Total
YoY
Q1
Change
5.5 +3.3%
1.2 (0.0)
5.2 +270.1%
- + 0.8
- +13.8%
- + 6.3
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3-2 (1). [Department Stores in Japan] Performance
- Net sales from customers in Japan was strong and net sales from inbound travelers significantly outperformed assumptions
- Store gross margin ratio worsened due to changes to merchandise composition but profit increased
- For SG&A expenses, we implemented our cost-optimization program to minimize increases in variable costs, etc.
(billion JPY) | Q1 | YoY |
Change | ||
Total operating revenue | 216.1 | +17.3% |
Total sales | 212.1 | +17.5% |
Gross margin ratio | 22.00% | (0.52) |
[% of in-store Total sales] | ||
Gross margin of in-store Total sales | 43.9 | +16.5% |
SG&A expenses | 40.2 | +1.5 |
SG&A to total operating | 18.6% | (2.4) |
revenue ratio | ||
Operating profit | 9.0 | +4.8 |
Operating profit ratio | 4.2% | +1.9 |
[% of Total operating revenue] | ||
*We apply the Accounting Standard for Revenue Recognition as of FY2022. As such, operating revenue and net sales based on the recording method used through FY2021 are indicated as total operating revenue and total sales, respectively.
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3-2 (2). [Department Stores in Japan] In-Store Net Sales
(Total and domestic net sales)
- Total net sales increased roughly 20% YoY thanks to a boost from sales from inbound travelers
- Domestic net sales were strong with results outperforming the previous year
- Growth in domestic net sales accelerated even after the correction in consumption during the previous year after COVID-19 was designated a Class 5 infectious disease
(vs. Previous FY) Trends Before and After COVID-19 Designation as a Class 5
Infectious Disease (from May 8, 2023)
1Q Cumulative
+19.3%
1Q Cumulative
+6.6%
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3-2 (3). [Department Stores in Japan] Domestic Net Sales
(by store, area)
- By store sales to customers in Japan were driven by urban stores while sales at regional suburban stores were also steady
- By area, there was no significant difference as a well-balanced store mix contribute to performance
(vs. Previous FY) Trends Before and After COVID-19 Designation as a Class 5
Infectious Disease (from May 8, 2023)
+15.0% | Urban stores | Regional suburban stores | |||
+12.4% | +8.9% | ||||
+10.0% | +7.3% | +3.8% | +4.8% | ||
+5.0% | +3.2% | ||||
+0.0% | (5.0%) | ||||
(2.7%) | |||||
(5.0%) | |||||
(10.0%) | |||||
March | April | May 1 to 7 | May 8 to 31 | ||
+15.0% | Kansai | Kanto | |||
+13.5% | (Kansai: Includes Okayama Store, Gifu Store) | +10.6% | |||
+10.0% | +7.5% | (Kanto: Includes Takasaki Store) | |||
+5.0% | +2.9% | +4.0% | +2.8% | ||
+0.0% | +1.7% | ||||
(5.0%) | (0.1%) | ||||
March | April | May 1 to 7 | May 8 to 31 | ||
9 |
1Q Cumulative
Urban stores +8.1% Regional suburban stores +2.0%
1Q Cumulative
Kansai +4.2% Kanto +8.1%
3-2 (4). [Department Stores in Japan] Domestic Net Sales
(by customer type, product)
- By customer type in Japan, the growth rate for VIP customers was high but sales to non-VIP customers, which account for the majority, were also firm
- By product, in addition to high-ticket items, fashion, which saw a major correction the previous year, outperformed assumptions
(vs. Previous FY) Trends Before and After COVID-19 designation as a Class 5 Infectious Disease (from May 8, 2023)
Net sales from VIP customers | ||||
+20.0% | Net sales from Non-VIP customers | |||
+15.0% | +14.6% | +10.4% | +19.8% | +10.5% |
+10.0% | ||||
+9.9% | +5.8% | |||
+5.0% | ||||
+0.0% | (1.5%) | |||
(2.3%) | ||||
(5.0%) | ||||
March | April | May 1 to 7 | May 8 to 31 | |
High-ticket items | Fashion | |||
+25.0% +22.9% | (High-ticket items: Luxury brands, etc.) | +20.3% | ||
+20.0% | (Fashion: Men's/women's clothing, cosmetics, | |||
etc.) | ||||
+15.0% | ||||
+10.0% +6.3% | +7.1% | +4.1% | ||
+2.2% | ||||
+5.0% | +1.6% | |||
+0.0% | ||||
(0.9%) | ||||
(5.0%) | ||||
March | April | May 1 to 7 | May 8 to 31 | |
10 |
1Q Cumulative
VIP +12.4%
Non-VIP +4.2%
1Q Cumulative
High-ticket items
+15.6%
Fashion +3.2%
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Takashimaya Co. Ltd. published this content on 28 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2024 12:16:22 UTC.
