Financial Results Briefing for Fiscal Year Ending March 2026

Overview of Performance for FY2026

In the fiscal year ending March 2026, consolidated total sales were 1.1624 trillion yen, remaining flat compared to the previous year. Operating income declined by 7% YoY to 32.4 billion yen, and net income attributable to owners of the parent decreased by 14% YoY to 30.0 billion yen. The primary factors for the decline in operating income were increased costs and a decrease in inbound sales in the department store business. Although domestic sales in the department store segment remained steady, the segment experienced a decline due to the rebound from a surge in inbound sales in the previous year. Meanwhile, the food business experienced steady same-store sales growth, resulting in increased revenue and profit, achieving its first-ever operating income of 10 billion yen.

FY2027 Performance Outlook and Dividend Plan

For FY2027, total sales are forecasted to reach 1.245 trillion yen (YoY +7%), with operating income at 32.5 billion yen (YoY +0%), and net income attributable to owners of the parent at 23.0 billion yen (YoY ▲23%). The department store segment is expected to see sales growth due to the renovation of Hankyu's main store, but costs such as labor expenses will increase, and the continued decline in Chinese duty-free sales is expected. Investment costs in growth areas will also rise, limiting profit increases to a slight margin. The annual dividend is planned to increase by 2 yen from the FY2025 level to 46 yen, and a further increase of 2 yen to 48 yen is planned for FY2026.