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Financial results presentation3086J.FRONT RETAILING Co.,Ltd.Retail

Financial Results Briefing for the Fiscal Year Ended February 2026

In FY2025, revenue increased, but operating profit and profit for the year declined due in part to the reversal of a one-off gain recorded in the previous year. For FY2026, the company aims to achieve higher revenue and profit, driven by growth in shopping centers and the developer business while factoring in the impact of department store renovations, and plans to increase the annual dividend to ¥56. It also indicated that the business profit target under its medium-term management plan is expected to be missed, and outlined measures including approximately ¥60 billion in strategic investments and share buybacks.

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Financial results presentationFY ending February 2026 (FY2025) and FY ending February 2027 (FY2026 forecast)11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,450 100 million+0.7%
Operating profit¥490 100 million-15.8%
Net income¥282 100 million-31.7%
Selling, general and administrative expenses¥1,648 100 million
Full-year earnings forecast
Fiscal year ending February 2027
Gross sales
¥13,470 100 million
Revenue
¥4,690 100 million
Gross profit
¥2,210 100 million
Selling, General and Administrative Expenses
¥1,690 100 million
Business profit
¥520 100 million
Operating profit
¥470 100 million
Profit for the period attributable to owners of the parent
¥290 100 million
Annual Dividend
¥56
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below the medium-term plan target
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Year-on-year decline in duty-free sales at department stores-¥20 billion
  • Daimaru Matsuzakaya Department Stores personnel expenses¥490 million increase year on year
  • Daimaru Matsuzakaya Department Stores advertising expenses¥846 million increase year on year
  • Daimaru Matsuzakaya Department Stores commissions¥2.9 billion increase year on year
  • Daimaru Matsuzakaya Department Stores outsourcing and subcontracting expenses¥1.4 billion increase year on year
  • Expected decline in Umeda store business profit in FY2026-¥5.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • AssumptionsStrategic Investment
    Figuresassuming approximately ¥60 billion is invested
New initiatives
  • Approximately ¥60 billion in strategic investments
  • Share buyback of up to ¥10 billion and 5 million shares
  • Integration and reorganization of the architectural interiors and building maintenance businesses as J. Front Prime Space
  • Plan to launch point exchanges between the department stores and PARCO in FY2027
  • New entry into the game publishing business
  • Establishment of a jointly funded company to operate a sweets sales business
  • Participation in a jointly funded branded-goods purchasing business
  • Introduction of PARCO at the South Building of Matsuzakaya Nagoya
  • Fukuoka PARCO to cease operations in February 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Daimaru Matsuzakaya Department Stores duty-free sales¥1,046 100 million
    Year on year against the same period last year-13.4%
  • Total department store duty-free sales¥1,105 100 million
    Year on year against the same period last year-15.3%
  • Total sales at directly operated Daimaru Matsuzakaya Department Stores0.5 % year on year
  • PARCO existing-store tenant sales7.9 % year on year
  • Number of Group ID customers (FY2026)600 More than 10,000 people
  • Consolidated ROE6.9 ％
    Year on year against the same period last year3.6 percentage-point decline
  • Consolidated ROIC5.9 ％
    Year on year against the same period last year0.3 percentage-point decline
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of duty-free customers1Q＋14.2%、2Q＋5.8%、3Q＋15.4%、4Q△22.2%
  • Average duty-free spend per customer1Q△33.4%、2Q△24.9%、3Q△0.5%、4Q＋8.0%
Segment results
Department stores
Revenue
¥2,681 100 million+1.7%
Business profit
¥309 100 million-9.1%
Operating profit
¥298 100 million+0.6%
SC
Revenue
¥672 100 million+4.4%
Business profit
¥140 100 million+9.9%
Operating profit
¥136 100 million+6.4%
Developer
Revenue
¥813 100 million-10.2%
Business profit
¥73 100 million-11.6%
Operating profit
¥70 100 million-14.2%
Payments and finance
Revenue
¥135 100 million+2.8%
Business profit
¥9 100 million-41.2%
Operating profit
¥9 100 million-37.0%
Other
Revenue
¥579 100 million+14.3%
Business profit
¥5 100 million-35.2%
Operating profit
¥4 100 million-45.4%
Medium-term management plan targets
Business profit
Target value¥560 100 million
Target fiscal yearFiscal 2026
Fiscal 2026 outlook
¥520 100 million
ROE
Actuals and outlook6.9 ％
Financial targets
ROE
FY2025 actual6.9 ％
FY2026 forecast6.9 ％
ROIC
FY2025 actual5.9 ％
FY2026 forecast5.7 ％
Equity ratio
FY2025 actual36.4 ％
FY2026 forecast32.3 ％
Annual Dividend
Annual dividend per share
FY2025¥54
FY2026 forecast¥56
Breakdown
FY2025
Interim27
End of period27
FY2026 forecast
Interim28
End of period28
Acquisition of treasury shares
Buyback limit
¥100 100 million
Number of Shares5,000,000
Share unitShares (maximum)
Period15 April 2026 to 26 June 2026
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY ending February 2026 (FY2025) and FY ending February 2027 (FY2026 forecast)
Net Sales¥4,450 100 million (YoY +0.7%)
Operating profit¥490 100 million (YoY -15.8%)
Net income¥282 100 million (YoY -31.7%)
Selling, general and administrative expenses¥1,648 100 million
Full-year earnings forecastFiscal year ending February 2027 Gross sales ¥13,470 100 million / Revenue ¥4,690 100 million / Gross profit ¥2,210 100 million / Selling, General and Administrative Expenses ¥1,690 100 million / Business profit ¥520 100 million / Operating profit ¥470 100 million / Profit for the period attributable to owners of the parent ¥290 100 million / Annual Dividend ¥56
Self-assessment against the planBelow the medium-term plan target
Segment resultsDepartment stores Revenue ¥2,681 100 million (YoY +1.7%) / Business profit ¥309 100 million (YoY -9.1%) / Operating profit ¥298 100 million (YoY +0.6%) / SC Revenue ¥672 100 million (YoY +4.4%) / Business profit ¥140 100 million (YoY +9.9%) / Operating profit ¥136 100 million (YoY +6.4%) / Developer Revenue ¥813 100 million (YoY -10.2%) / Business profit ¥73 100 million (YoY -11.6%) / Operating profit ¥70 100 million (YoY -14.2%) / Payments and finance Revenue ¥135 100 million (YoY +2.8%) / Business profit ¥9 100 million (YoY -41.2%) / Operating profit ¥9 100 million (YoY -37.0%) / Other Revenue ¥579 100 million (YoY +14.3%) / Business profit ¥5 100 million (YoY -35.2%) / Operating profit ¥4 100 million (YoY -45.4%)
Breakdown of Factors Affecting the ChangeFactors Year-on-year decline in duty-free sales at department stores / Amount -¥20 billion, Factors Daimaru Matsuzakaya Department Stores personnel expenses / Amount ¥490 million increase year on year, Factors Daimaru Matsuzakaya Department Stores advertising expenses / Amount ¥846 million increase year on year, Factors Daimaru Matsuzakaya Department Stores commissions / Amount ¥2.9 billion increase year on year, Factors Daimaru Matsuzakaya Department Stores outsourcing and subcontracting expenses / Amount ¥1.4 billion increase year on year, Factors Expected decline in Umeda store business profit in FY2026 / Amount -¥5.0 billion
Key KPIsIndicator name Daimaru Matsuzakaya Department Stores duty-free sales / Value ¥1,046 100 million / Year on year against the same period last year ¥-13.4 100 million, Indicator name Total department store duty-free sales / Value ¥1,105 100 million / Year on year against the same period last year ¥-15.3 100 million, Indicator name Total sales at directly operated Daimaru Matsuzakaya Department Stores / Value 0.5 % year on year / Year on year against the same period last year Not disclosed, Indicator name PARCO existing-store tenant sales / Value 7.9 % year on year / Year on year against the same period last year Not disclosed, Indicator name Number of Group ID customers (FY2026) / Value 600 More than 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Consolidated ROE / Value 6.9 ％ / Year on year against the same period last year 3.6 percentage-point decline, Indicator name Consolidated ROIC / Value 5.9 ％ / Year on year against the same period last year 0.3 percentage-point decline
Unit price and quantity metricsIndicator name Number of duty-free customers / Value 1Q＋14.2%、2Q＋5.8%、3Q＋15.4%、4Q△22.2%, Indicator name Average duty-free spend per customer / Value 1Q△33.4%、2Q△24.9%、3Q△0.5%、4Q＋8.0%
Assumptions Underlying the Business OutlookAssumptions Strategic Investment / Figures assuming approximately ¥60 billion is invested
Medium-term management plan targetsBusiness profit Target value ¥560 100 million / Target fiscal year Fiscal 2026 / Fiscal 2026 outlook Value ¥520 100 million / ROE Target value Not disclosed / Actuals and outlook 6.9 ％
Financial targetsROE FY2025 actual 6.9 ％ / FY2026 forecast 6.9 ％ / ROIC FY2025 actual 5.9 ％ / FY2026 forecast 5.7 ％ / Equity ratio FY2025 actual 36.4 ％ / FY2026 forecast 32.3 ％
Annual DividendAnnual dividend per share FY2025 ¥54 / FY2026 forecast ¥56 / Breakdown FY2025 Interim 27 / End of period 27 / FY2026 forecast Interim 28 / End of period 28
Acquisition of treasury sharesBuyback limit Amount ¥100 100 million / Number of Shares ¥5,000,000 100 million / Share unit Shares (maximum) / Period 15 April 2026 to 26 June 2026
New initiativesApproximately ¥60 billion in strategic investments, Share buyback of up to ¥10 billion and 5 million shares, Integration and reorganization of the architectural interiors and building maintenance businesses as J. Front Prime Space, Plan to launch point exchanges between the department stores and PARCO in FY2027, New entry into the game publishing business, Establishment of a jointly funded company to operate a sweets sales business, Participation in a jointly funded branded-goods purchasing business, Introduction of PARCO at the South Building of Matsuzakaya Nagoya, Fukuoka PARCO to cease operations in February 2027
Items this document does not state (13)
Ordinary incomeGross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, department store revenue increased on strong spending by affluent customers and the effect of Expo 2025 Osaka, Kansai, but profit declined due to higher costs, including price increases. The decline in operating profit and profit for the year was affected by the reversal of a gain on a step acquisition recorded in the previous year. For FY2026, the renovation of the Umeda store and the fading of the Expo effect are expected to weigh on profit, while the company aims for higher revenue and profit through growth in department store sales to corporate and high-net-worth customers, the effects of renovations, the effects of shopping center renovations, and property sales by the developer business.

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Financial Results Briefing for the Fiscal Year Ended February 2026 | J.FRONT RETAILING Co.,Ltd. (3086) timely disclosure | Komori