Fiscal Year Ending February 2026 (FY2025) Q3 Earnings Presentation

Q3 Performance Highlights

Cumulatively, revenue declined due to a year-on-year correction in inbound sales within the domestic department store segment, but Q3 secured increases in both revenue and profit. Business profit and ordinary income for Q3 increased, and net income rose cumulatively. The domestic department store business shifted to operating income growth in Q3 driven by steady domestic customer sales and implementation of cost reduction measures. Each segment performed roughly in line with expectations.

Consolidated Financial Performance

For the cumulative Q3, total operating revenue was 744.2 billion yen (YoY △1.3%), operating income was 37.3 billion yen (YoY △4.3 billion yen), business profit was 40.0 billion yen (YoY △5.0 billion yen), ordinary income was 35.9 billion yen (YoY △5.9 billion yen), and net income was 29.7 billion yen (YoY +3.6 billion yen). While revenue declined due to the year-on-year correction in inbound sales, profit increased thanks to a rise in equity-method investment income and reduced foreign exchange losses.

Segment Performance

The domestic department store business posted net sales of 613.6 billion yen (YoY △2.2%) and operating income of 16.3 billion yen (YoY △4.4 billion yen), with steady domestic customer sales but impacted by decreased inbound shoppers. The overseas department store business recorded operating revenue of 24.8 billion yen (YoY △1.4%) and operating income of 5.6 billion yen (YoY +0.1 billion yen), affected by sluggish consumption in Singapore but with growth in the Vietnam operations. The commercial development business achieved 38.8 billion yen (YoY +1.8%) but recorded a profit decline.