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Earnings presentation3099Isetan Mitsukoshi Holdings Ltd.Retail

Financial Results Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

Revenue and profit exceeded the year-earlier levels in the first half, with operating profit of ¥37.5 billion and net income of ¥37.1 billion, both setting records for a first half and second quarter. Following the strong first half, the full-year forecasts were revised upward to total revenue of ¥1.37 trillion, operating profit of ¥86.0 billion and net income of ¥65.5 billion.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
860
¥ billion (full-year operating profit plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,632 100 million+3.7%
Operating profit¥375 100 million+19.4%
Ordinary income¥400 100 million+20.9%
Net income¥371 100 million+26.4%
Gross Profit Margin62.4%
Operating profit margin14.2%
Selling, general and administrative expenses¥1,267 100 million
Results for the three months of the current quarter
Gross sales
¥3,149 100 million+6.8%
Net Sales
¥1,343 100 million+3.6%
Operating profit
¥186 100 million+18.2%
Ordinary income
¥201 100 million+25.4%
Net income
¥148 100 million+40.5%
Full-year earnings forecast
Total transaction value
¥14,150 100 million
Gross sales
¥13,700 100 million
Net Sales
¥5,630 100 million
Gross profit
¥3,490 100 million
Selling, General and Administrative Expenses
¥2,630 100 million
Operating profit
¥860 100 million
Ordinary income
¥870 100 million
Profit attributable to owners of the parent
¥655 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales-linked expenses¥-23 100 million
  • Expense structure reforms¥-23 100 million
  • Strategic expenses¥10 100 million
  • Impact on prices¥7 100 million
  • Newly consolidated companies¥23 100 million
  • Other¥4 100 million
  • Year-on-year change in total selling, general and administrative expenses¥21 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Domestic customer sales
    Assumption104.0% year on year for the full year
  • Overseas customer revenue
    Assumption116.4% year on year for the full year
  • Overseas customer revenue in the second half
    Assumption110.1% year on year
New initiatives
  • Launch of the premium MICARD⁺ THE ONE card in February 2027
  • Introduction of a two-tier points system from February 2027
  • Launch of an AI assistant for searching store information from the second half of fiscal 2026
  • Redevelopment of a hotel and company offices is planned in Shinjuku 5-chome, with opening scheduled for 2032
  • Opening scheduled for 17 March 2027 of a collaboration brand with French chocolatier Bernachon
  • Promotion of remodeling at 3 flagship stores, fragrance, VIP salons, immersive events and other initiatives
Key KPIsA metric the company considers important as a management benchmark.
  • Number of identifiable customers867 10,000 people
    Year on year against the same period last year109%
  • Number of Gold Card members32 10,000 people
    Year on year against the same period last year103%
  • Number of Basic Card members17 10,000 people
    Year on year against the same period last year217%
  • Number of overseas app members128 10,000 people
  • Number of visitors to domestic department stores101%
  • Operating margin5.4%
    Year on year against the same period last yearYear-on-year change: +0.6 pt
  • SG&A expenses as a percentage of net sales21.2%
    Year on year against the same period last yearYear-on-year change: -1.2 pt
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Comparison of first-half spending per domestic and overseas customer by customer category. Specific amounts: Not disclosed.
Segment results
  • Department store business
    Gross sales5,869
    Net Sales2,138
    Operating profit308
    Year-on-Year Change in Operating Profit53
  • Credit, financial services and membership clubs
    Gross sales188
    Net Sales176
    Operating profit35
    Year-on-Year Change in Operating Profit6
  • Real Estate
    Gross sales154
    Net Sales154
    Operating profit23
    Year-on-Year Change in Operating Profit4
  • Other
    Gross sales143
    Net Sales163
    Operating profit7
    Year-on-Year Change in Operating Profit-3
Medium-term management plan targets
  • TargetOperating profit of ¥85.0 billion
    Target fiscal yearFiscal year ending March 2027 (fiscal 2027)
    Comparison with actual results¥86.0 billion is expected to be achieved in fiscal 2026
  • TargetROE of 12%
    Target fiscal yearMedium term
    Comparison with actual resultsFiscal 2026 plan: 10.7%
Financial targets
  • ROE
    TargetMedium-term target of 12%
    Actual and forecastFiscal 2026 plan: 10.7%
  • Consolidated ROIC
    Actual and forecast8.7%
  • DOE
    TargetAt least 5% from fiscal 2027
    Actual and forecastFiscal 2026 forecast: 5.0%
Capital expenditures
¥442 100 million fiscal 2026 plan
Annual Dividend
Annual dividend per share¥44
Breakdown
Interim22
End of period22
Acquisition of treasury shares
Acquisition cost¥27.0 billion (fiscal 2026 forecast)
Remaining planned acquisition amountApproximately ¥8 billion
PeriodNovember 2026 onward
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥2,632 100 million (YoY +3.7%)
Operating profit¥375 100 million (YoY +19.4%)
Ordinary income¥400 100 million (YoY +20.9%)
Net income¥371 100 million (YoY +26.4%)
Gross Profit Margin62.4%
Operating profit margin14.2%
Selling, general and administrative expenses¥1,267 100 million
Results for the three months of the current quarterGross sales ¥3,149 100 million (YoY +6.8%) / Net Sales ¥1,343 100 million (YoY +3.6%) / Operating profit ¥186 100 million (YoY +18.2%) / Ordinary income ¥201 100 million (YoY +25.4%) / Net income ¥148 100 million (YoY +40.5%)
Full-year earnings forecastTotal transaction value ¥14,150 100 million / Gross sales ¥13,700 100 million / Net Sales ¥5,630 100 million / Gross profit ¥3,490 100 million / Selling, General and Administrative Expenses ¥2,630 100 million / Operating profit ¥860 100 million / Ordinary income ¥870 100 million / Profit attributable to owners of the parent ¥655 100 million
Segment resultsSegment Department store business / Gross sales ¥5,869 100 million / Net Sales ¥2,138 100 million / Operating profit ¥308 100 million / Year-on-Year Change in Operating Profit ¥53 100 million, Segment Credit, financial services and membership clubs / Gross sales ¥188 100 million / Net Sales ¥176 100 million / Operating profit ¥35 100 million / Year-on-Year Change in Operating Profit ¥6 100 million, Segment Real Estate / Gross sales ¥154 100 million / Net Sales ¥154 100 million / Operating profit ¥23 100 million / Year-on-Year Change in Operating Profit ¥4 100 million, Segment Other / Gross sales ¥143 100 million / Net Sales ¥163 100 million / Operating profit ¥7 100 million / Year-on-Year Change in Operating Profit ¥-3 100 million
Breakdown of Factors Affecting the ChangeItem Sales-linked expenses / Amount ¥-23 100 million, Item Expense structure reforms / Amount ¥-23 100 million, Item Strategic expenses / Amount ¥10 100 million, Item Impact on prices / Amount ¥7 100 million, Item Newly consolidated companies / Amount ¥23 100 million, Item Other / Amount ¥4 100 million, Item Year-on-year change in total selling, general and administrative expenses / Amount ¥21 100 million
Key KPIsIndicator name Number of identifiable customers / Value 867 10,000 people / Year on year against the same period last year 109%, Indicator name Number of Gold Card members / Value 32 10,000 people / Year on year against the same period last year 103%, Indicator name Number of Basic Card members / Value 17 10,000 people / Year on year against the same period last year 217%, Indicator name Number of overseas app members / Value 128 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Number of visitors to domestic department stores / Value 101% / Year on year against the same period last year Not disclosed, Indicator name Operating margin / Value 5.4% / Year on year against the same period last year Year-on-year change: +0.6 pt, Indicator name SG&A expenses as a percentage of net sales / Value 21.2% / Year on year against the same period last year Year-on-year change: -1.2 pt
Unit price and quantity metricsComparison of first-half spending per domestic and overseas customer by customer category. Specific amounts: Not disclosed.
Assumptions Underlying the Business OutlookItem Domestic customer sales / Assumption 104.0% year on year for the full year, Item Overseas customer revenue / Assumption 116.4% year on year for the full year, Item Overseas customer revenue in the second half / Assumption 110.1% year on year
Medium-term management plan targetsTarget Operating profit of ¥85.0 billion / Target fiscal year Fiscal year ending March 2027 (fiscal 2027) / Comparison with actual results ¥86.0 billion is expected to be achieved in fiscal 2026, Target ROE of 12% / Target fiscal year Medium term / Comparison with actual results Fiscal 2026 plan: 10.7%
Financial targetsIndicator ROE / Target Medium-term target of 12% / Actual and forecast Fiscal 2026 plan: 10.7%, Indicator Consolidated ROIC / Target Not disclosed / Actual and forecast 8.7%, Indicator DOE / Target At least 5% from fiscal 2027 / Actual and forecast Fiscal 2026 forecast: 5.0%
Annual DividendAnnual dividend per share ¥44 / Breakdown Interim 22 / End of period 22
Acquisition of treasury sharesAcquisition cost ¥27.0 billion (fiscal 2026 forecast) / Remaining planned acquisition amount Approximately ¥8 billion / Period November 2026 onward
Capital expenditures¥442 100 million (fiscal 2026 plan)
New initiativesLaunch of the premium MICARD⁺ THE ONE card in February 2027, Introduction of a two-tier points system from February 2027, Launch of an AI assistant for searching store information from the second half of fiscal 2026, Redevelopment of a hotel and company offices is planned in Shinjuku 5-chome, with opening scheduled for 2032, Opening scheduled for 17 March 2027 of a collaboration brand with French chocolatier Bernachon, Promotion of remodeling at 3 flagship stores, fragrance, VIP salons, immersive events and other initiatives
Items this document does not state (9)
Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders 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.

Revenue increased due to deeper relationships with domestic customers, greater diversity in the areas from which overseas customers visit, and CRM initiatives. Profit increased as the company continued to control expenses and reform its expense structure despite the increase in revenue.

How to read this page

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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 Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | Isetan Mitsukoshi Holdings Ltd. (3099) timely disclosure | Komori