FY2026 February Period Earnings Presentation Materials J. Front Retailing Consolidated Financial Results [IFRS]

Performance Overview

In the consolidated financial results for the fiscal year ending February 2026, total gross sales amounted to 1,290,489 million yen (up 1.7% YoY), and revenue was 445,094 million yen (up 0.7% YoY). Meanwhile, operating income decreased to 49,015 million yen (down 15.8% YoY), and net income attributable to owners of parent dropped to 28,282 million yen (down 31.7% YoY). The gross profit margin on revenue improved by 0.29 points to 48.40% compared to the previous year; however, increased selling, general and administrative expenses contributed to the decline in profitability. Total assets increased to 1,141,567 million yen compared to the prior year, and the equity ratio attributable to owners of parent also improved to 36.4%.

Segment Performance and Outlook for Next Fiscal Year

Detailed revenue and business profit figures are provided for the Department Store, Shopping Center (SC), Developer, and Payment/Finance business segments. The Department Store segment’s revenue was approximately 267,744 million yen, remaining flat year on year. The SC segment showed a growth trend, whereas the Developer segment experienced a revenue decline. For the next fiscal year ending February 2027, consolidated earnings guidance forecasts revenue of 469,000 million yen (up 5.4% YoY), operating income of 44,000 million yen (expected to decline), and net income attributable to owners of parent of 26,000 million yen (expected decrease). Despite anticipated increases in capital expenditures and selling expenses, a cautious outlook on profitability is presented.