Financial Results Briefing for the Fiscal Year Ending February 2026 (FY2025)

Overview of Performance

For the fiscal year ending February 2026 (FY2025), total operating revenue was 1,032.3 billion yen, nearly flat year-over-year and 1.7% above plan. Operating income was 53.5 billion yen, down 4.0 billion yen YoY but 1.0 billion yen over plan. Net loss was 8.2 billion yen due to the impact of special losses, but excluding these, net income improved by 2.3 billion yen compared to plan. Domestic department store sales were 850.2 billion yen, down 1.0% YoY but exceeding plan, with operating income of 24.9 billion yen, up 1.8 billion yen over plan. Overseas department store sales remained nearly flat at 35.2 billion yen, with operating income increasing to 8.5 billion yen. The financial business posted both increased revenue and profit, with sales of 25.2 billion yen and operating income of 5.6 billion yen.

Financial Position and Outlook

Total assets increased by 50.2 billion yen to 1,346.2 billion yen, driven by fixed asset sales and accounts receivable growth. Meanwhile, current liabilities rose by 127.2 billion yen due to increased borrowings. Shareholders' equity decreased by 31.0 billion yen, impacted by net loss, share buybacks, and dividend payments. Operating cash flow declined by 18.7 billion yen year-over-year due to special losses, whereas investing cash flow increased by 4.8 billion yen reflecting higher growth investments. Financing cash flow rose by 10.0 billion yen thanks to increased share buybacks and dividend payments. Going forward, the company aims to enhance shareholder value towards its 200th anniversary in 2031 by progressing its medium-term management plan with a focus on profit growth and evolving capital policies.