Takashimaya Company, Limited Fiscal Year Ending February 2026 Earnings Presentation Q&A Summary

Performance Overview

For the fiscal year ending February 2026, consolidated operating income is projected at 57.5 billion yen, an increase of 4 billion yen from the previous year. In the domestic department store business, sales to domestic customers including personal sales are expected to steadily grow, with a planned 6% year-over-year increase. Inbound sales are forecasted at 84.5 billion yen, reflecting a year-over-year decline of 11% due to exchange rate fluctuations and increased fuel surcharges. The gross profit margin is targeted to improve by 0.25 points, driven by increased sales in high-margin fashion categories such as women's apparel and miscellaneous goods. Regarding selling, general and administrative expenses, 6.4 billion yen in reductions were achieved in the fiscal year 2025 compared to the planned 5.8 billion yen, and a 4.5 billion yen reduction plan is set for fiscal year 2026.

Capital Policy and Governance Trends

The share buyback policy for fiscal year 2026 has been temporarily withdrawn in consideration of the repurchase and cancellation of Convertible Bonds (CBs). However, if free cash flow exceeds expectations, a balanced profit allocation including growth investments and shareholder returns will be implemented. Regarding financial leverage, CB repurchase and cancellation using borrowings has been carried out, and going forward, appropriate debt utilization will continue with an emphasis on capital efficiency. In terms of governance, the company has decided to transition to a company with an audit and supervisory committee, aiming to enhance management transparency and deepen discussions on growth strategy at the board of directors.