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Financial results presentation3099Isetan Mitsukoshi Holdings Ltd.Retail

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, although net sales fell below the previous year, operating profit reached ¥80.0 billion as a result of SG&A cost reductions, marking a record high for the third consecutive year. Operating profit is planned to increase to ¥81.5 billion for the fiscal year ending March 2027, while net profit is expected to decline to ¥61.5 billion due to the absence of gains on the sale of shares in affiliates and other factors recorded in the previous year.

Worth reading
81Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
37
Year-on-year change in operating profit (¥100 million)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,456 100 million+98.2%
Operating profit¥800 100 million+104.9%
Ordinary income¥865 100 million+98.3%
Net income¥760 100 million+144.1%
Selling, general and administrative expenses¥2,567 100 million
Operating profit margin6.2%; year-on-year change: Not disclosed
Results for the three months of the current quarter
Gross sales
¥3,388 100 million
Net Sales
¥1,392 100 million
Gross profit
¥870 100 million
Selling, General and Administrative Expenses
¥651 100 million
Operating profit
¥219 100 million
Ordinary income
¥227 100 million
Net income
¥248 100 million
Full-year earnings forecast
Total transaction value
¥13,950 100 million
Gross sales
¥13,500 100 million
Net Sales
¥5,600 100 million
Gross profit
¥3,445 100 million
Selling, General and Administrative Expenses
¥2,630 100 million
Operating profit
¥815 100 million
Ordinary income
¥800 100 million
Net income
¥615 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Selling, general and administrative expenses
Expense structure reforms-¥7.1 billion
Sales-linked expenses-¥400 million
Strategic expenses+¥0.0 billion
Impact on prices+¥2.7 billion
Other+¥100 million
By expense category
Personnel Expenses-¥1.6 billion
Advertising expenses-¥600 million
Rent-¥1.6 billion
Outsourcing expenses−¥900 million
Depreciation and amortization+¥200 million
Utilities expenses−¥0.2 billion
Other+¥200 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The plan assumes growth in sales to domestic customers based on identifiable customers, while sales to overseas customers are planned at the previous year's level given the uncertain environment. Numerical assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed
New initiatives
  • Establishment and launch of the Zero-MD Group
  • Promotion of the premium card strategy
  • Integration of customer IDs for related businesses into the Mitsukoshi Isetan ID
  • Design of a sales support tool for personal shopping services
  • Promotion of the ONE Group personal shopping organization
  • Introduction of DOE
Key KPIsA metric the company considers important as a management benchmark.
  • Number of purchases by identifiable domestic customers102 Year-on-year %
  • Number of identifiable customers835 10,000 people
    Year on year against the same period last year110%
  • Overseas customer app and WeChat members88 10,000 people
  • Sales from remodeling the 3 core stores¥206 100 million
    Year on year against the same period last year126%
  • Online sales¥553 100 million
    Year on year against the same period last year120%
  • Total transaction value from nationwide personal shopping customers¥2,491 100 million
    Year on year against the same period last year107%
  • Total transaction value from overseas sales customers¥203 100 million
    Year on year against the same period last year153%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average spend per identified domestic customer
¥225 thousand
Year on year against the same period last year104%
Average spend per domestic customer
47〜948
Average spend per overseas customer
140〜763
Segment results
Department store business
Gross sales12,051
Net Sales4,497
Operating profit655
Operating profit margin5.4%
Year-on-year change in gross sales99.6%
Year-on-year change in operating income+¥900 million
Credit, financial services and membership clubs
Gross sales380
Net Sales355
Operating profit63
Operating profit margin16.6%
Year-on-year change in gross sales103.0%
Year-on-year change in operating income+¥500 million
Real Estate Business
Gross sales271
Net Sales271
Operating profit46
Operating profit margin17.2%
Year-on-year change in gross sales92.0%
Year-on-year change in operating income+¥1 billion
Other
Gross sales291
Net Sales331
Operating profit34
Operating profit margin12.0%
Year-on-year change in gross sales107.2%
Year-on-year change in operating income+¥1 billion
Medium-term management plan targets
Consolidated operating profitMore than ¥100 billion thereafter
Number of identifiable customers9.5 million in fiscal 2027 and approximately 11.0 million in fiscal 2030
Financial targets
ROEStabilize at 10% or higher
ROIC8.3% planned for fiscal 2026 and 7.8% planned for fiscal 2027 (as of the formulation of the medium-term management plan)
Cost of shareholders’ equityAssumed at 8–9%
Capital expenditures
¥440 100 million; plan for the fiscal year ending March 2027
Annual Dividend
Annual dividend per share¥80 per share (planned for the fiscal year ending March 2027)
Payout ratio
Total payout ratio of at least 70% (cumulative for fiscal 2025–2027); DOE of at least 5% from fiscal 2027
Acquisition of treasury shares
Buyback limit¥30 billion
Planned purchases this fiscal year¥27.0 billion
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥5,456 100 million (YoY +98.2%)
Operating profit¥800 100 million (YoY +104.9%)
Ordinary income¥865 100 million (YoY +98.3%)
Net income¥760 100 million (YoY +144.1%)
Operating profit margin6.2%; year-on-year change: Not disclosed
Selling, general and administrative expenses¥2,567 100 million
Results for the three months of the current quarterGross sales ¥3,388 100 million / Net Sales ¥1,392 100 million / Gross profit ¥870 100 million / Selling, General and Administrative Expenses ¥651 100 million / Operating profit ¥219 100 million / Ordinary income ¥227 100 million / Net income ¥248 100 million
Full-year earnings forecastTotal transaction value ¥13,950 100 million / Gross sales ¥13,500 100 million / Net Sales ¥5,600 100 million / Gross profit ¥3,445 100 million / Selling, General and Administrative Expenses ¥2,630 100 million / Operating profit ¥815 100 million / Ordinary income ¥800 100 million / Net income ¥615 100 million
Segment resultsDepartment store business Gross sales 12,051 / Net Sales 4,497 / Operating profit 655 / Operating profit margin 5.4% / Year-on-year change in gross sales 99.6% / Year-on-year change in operating income +¥900 million / Credit, financial services and membership clubs Gross sales 380 / Net Sales 355 / Operating profit 63 / Operating profit margin 16.6% / Year-on-year change in gross sales 103.0% / Year-on-year change in operating income +¥500 million / Real Estate Business Gross sales 271 / Net Sales 271 / Operating profit 46 / Operating profit margin 17.2% / Year-on-year change in gross sales 92.0% / Year-on-year change in operating income +¥1 billion / Other Gross sales 291 / Net Sales 331 / Operating profit 34 / Operating profit margin 12.0% / Year-on-year change in gross sales 107.2% / Year-on-year change in operating income +¥1 billion
Breakdown of Factors Affecting the ChangeSelling, general and administrative expenses Expense structure reforms -¥7.1 billion / Sales-linked expenses -¥400 million / Strategic expenses +¥0.0 billion / Impact on prices +¥2.7 billion / Other +¥100 million / By expense category Personnel Expenses -¥1.6 billion / Advertising expenses -¥600 million / Rent -¥1.6 billion / Outsourcing expenses −¥900 million / Depreciation and amortization +¥200 million / Utilities expenses −¥0.2 billion / Other +¥200 million
Key KPIsIndicator name Number of purchases by identifiable domestic customers / Value 102 Year-on-year % / Year on year against the same period last year Not disclosed, Indicator name Number of identifiable customers / Value 835 10,000 people / Year on year against the same period last year 110%, Indicator name Overseas customer app and WeChat members / Value 88 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Sales from remodeling the 3 core stores / Value ¥206 100 million / Year on year against the same period last year 126%, Indicator name Online sales / Value ¥553 100 million / Year on year against the same period last year 120%, Indicator name Total transaction value from nationwide personal shopping customers / Value ¥2,491 100 million / Year on year against the same period last year 107%, Indicator name Total transaction value from overseas sales customers / Value ¥203 100 million / Year on year against the same period last year 153%
Unit price and quantity metricsAverage spend per identified domestic customer ¥225 thousand / Average spend per domestic customer 47〜948 / Average spend per overseas customer 140〜763
Assumptions Underlying the Business OutlookThe plan assumes growth in sales to domestic customers based on identifiable customers, while sales to overseas customers are planned at the previous year's level given the uncertain environment. Numerical assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed
Medium-term management plan targetsConsolidated operating profit More than ¥100 billion thereafter / Number of identifiable customers 9.5 million in fiscal 2027 and approximately 11.0 million in fiscal 2030
Financial targetsROE Stabilize at 10% or higher / ROIC 8.3% planned for fiscal 2026 and 7.8% planned for fiscal 2027 (as of the formulation of the medium-term management plan) / Cost of shareholders’ equity Assumed at 8–9%
Annual DividendAnnual dividend per share ¥80 per share (planned for the fiscal year ending March 2027) / Interim and Year-End Breakdown Not disclosed
Payout ratioTotal payout ratio of at least 70% (cumulative for fiscal 2025–2027); DOE of at least 5% from fiscal 2027
Acquisition of treasury sharesBuyback limit ¥30 billion / Planned purchases this fiscal year ¥27.0 billion / Period Not disclosed
Capital expenditures¥440 100 million; plan for the fiscal year ending March 2027
New initiativesEstablishment and launch of the Zero-MD Group, Promotion of the premium card strategy, Integration of customer IDs for related businesses into the Mitsukoshi Isetan ID, Design of a sales support tool for personal shopping services, Promotion of the ONE Group personal shopping organization, Introduction of DOE
Items this document does not state (9)
Gross Profit MarginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

Growth in sales to domestic customers offset the decline in sales to overseas customers, while reforms to the expense structure and reductions in SG&A expenses, mainly personnel expenses and rent, contributed to the increase in operating profit. The decline in net profit projected for the fiscal year ending March 2027 is attributed to the absence of the gains on the sale of shares in affiliates and tax effects recorded in the previous fiscal year.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | Isetan Mitsukoshi Holdings Ltd. (3099) timely disclosure | Komori