Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
70
% (share repurchase policy with a focus on the total payout ratio during the next medium-term management plan period)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFiscal year ended February 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit575 Hundreds of millions of yen
Selling, general and administrative expenses¥45 100 million FY2026 reduction plan
Full-year earnings forecast
Domestic customer sales+6% year on year (FY2026 plan)
Inbound sales¥84.5 billion (down 11% year on year)
Consolidated operating profit¥57.5 billion (¥4.0 billion increase in operating profit year on year)
Business profit from domestic department store operations¥2.8 billion increase in business profit year on year
Business profit from overseas department store operations¥1.1 billion increase in business profit year on year
Business profit from domestic commercial development operations¥8.3 billion
Merchandise profit marginImprovement of 0.25 percentage points from the previous year
Selling, general and administrative expense reductions¥4.5 billion
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues FY2026 plan for domestic customer sales / Summary of response While carefully assessing the external environment, the company will steadily implement sales initiatives, including strengthening its customer base and product offering
- Issues Planned decline in inbound sales / Summary of response The plan incorporates the impact of foreign exchange fluctuations and higher fuel surcharges, while the company aims to mitigate the impact by creating experiential value and improving repeat rates
- Issues Improvement in merchandise profit margin / Summary of response The company will expand sales in the high-margin fashion category, develop products and make use of sales channels including e-commerce
- Issues Selling, general and administrative expense reductions / Summary of response The company will continue rigorous expense controls and labor-saving measures in back-office operations through digital transformation, while managing costs overall
- Issues Increase in profit from overseas department store operations / Summary of response Singapore is expected to achieve higher revenue and profit by strengthening its customer base and product offering; Shanghai and Siam are expected to return to profitability following renovations; and Vietnam is expected to post a slight decline in profit due to foreign exchange effects
- Issues Growth in domestic commercial development operations / Summary of response Profit growth at shopping centers will be moderate because customer attraction is being prioritized in the shift to next-generation shopping centers, but the company places greater importance on the strategic value to the group as a whole
- Issues Share-repurchase policy / Summary of response The policy was temporarily withdrawn in light of the purchase and cancellation of the CBs. If free cash flow exceeds expectations, the company will allocate earnings appropriately
- Issues Financial Leverage / Summary of response The company will gradually shift from prioritizing debt reduction to using debt, and will consider the appropriate use of leverage while monitoring interest rate trends
- Issues Governance change / Summary of response The company will transition to a company with an audit and supervisory committee to enhance transparency and objectivity and secure time for discussions on its growth strategy
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Domestic department stores¥2.8 billion increase in profit
- Overseas department stores¥1.1 billion increase in profit
- FY2025 selling, general and administrative expense reductions¥6.4 billion reduction versus the planned ¥5.8 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- AssumptionsForeign-exchange volatility
- AssumptionsHigher fuel surcharges
- AssumptionsExternal Environment RisksFiguresFactored in to a certain extent
New initiatives
- Transition to a company with an Audit & Supervisory Committee
- Shift to next-generation shopping centers
- Labor-saving measures in back-office operations using digital transformation
- Creation of experiential value and improvement of inbound customer repeat rates
- Product development and sourcing in high-margin fashion categories, including women's apparel and miscellaneous goods
Key KPIsA metric the company considers important as a management benchmark.
- Domestic customer sales+6% year-on-year growth plannedYear on year against the same period last year+6%
- Inbound sales845 Hundreds of millions of yenYear on year against the same period last year△11%
- In-store merchandise profit marginIncrease of 0.25 percentage points from the previous year plannedYear on year against the same period last year+0.25 percentage points
- Total Payout Ratio70 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The impact on inbound customer numbers and spending per customer is discussed, but the figures are not disclosedMedium-term management plan targets
- Target fiscal yearFiscal 2031Target¥10.0 billion in business profit from domestic commercial development operations
- Target fiscal yearFiscal 2026Target¥8.3 billion in business profit from domestic commercial development operations
- Target fiscal yearFY2027–FY2029TargetShare repurchases with a focus on a 70% total payout ratio
Financial targets
The company discussed an increase in the D/E ratio and the use of financial leverage, but target and actual figures are not disclosedPayout ratio
The company discussed a share repurchase policy with a focus on a 70% total payout ratio. However, the policy has been temporarily withdrawnAcquisition of treasury shares
The policy on share repurchases from FY2026 onward has been temporarily withdrawn. The amount, number of shares and period covered by the repurchase authorization are not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ended February 2026 |
| Operating profit | 575 Hundreds of millions of yen |
| Selling, general and administrative expenses | ¥45 100 million (FY2026 reduction plan) |
| Full-year earnings forecast | Domestic customer sales +6% year on year (FY2026 plan) / Inbound sales ¥84.5 billion (down 11% year on year) / Consolidated operating profit ¥57.5 billion (¥4.0 billion increase in operating profit year on year) / Business profit from domestic department store operations ¥2.8 billion increase in business profit year on year / Business profit from overseas department store operations ¥1.1 billion increase in business profit year on year / Business profit from domestic commercial development operations ¥8.3 billion / Merchandise profit margin Improvement of 0.25 percentage points from the previous year / Selling, general and administrative expense reductions ¥4.5 billion |
| Breakdown of Factors Affecting the Change | Factors Domestic department stores / Amount ¥2.8 billion increase in profit, Factors Overseas department stores / Amount ¥1.1 billion increase in profit, Factors FY2025 selling, general and administrative expense reductions / Amount ¥6.4 billion reduction versus the planned ¥5.8 billion |
| Key KPIs | Indicator Domestic customer sales / Value +6% year-on-year growth planned / Year on year against the same period last year +6%, Indicator Inbound sales / Value 845 Hundreds of millions of yen / Year on year against the same period last year △11%, Indicator In-store merchandise profit margin / Value Increase of 0.25 percentage points from the previous year planned / Year on year against the same period last year +0.25 percentage points, Indicator Total Payout Ratio / Value 70 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The impact on inbound customer numbers and spending per customer is discussed, but the figures are not disclosed |
| Assumptions Underlying the Business Outlook | Assumptions Foreign-exchange volatility / Figures Not disclosed, Assumptions Higher fuel surcharges / Figures Not disclosed, Assumptions External Environment Risks / Figures Factored in to a certain extent |
| Medium-term management plan targets | Target fiscal year Fiscal 2031 / Target ¥10.0 billion in business profit from domestic commercial development operations, Target fiscal year Fiscal 2026 / Target ¥8.3 billion in business profit from domestic commercial development operations, Target fiscal year FY2027–FY2029 / Target Share repurchases with a focus on a 70% total payout ratio |
| Financial targets | The company discussed an increase in the D/E ratio and the use of financial leverage, but target and actual figures are not disclosed |
| Payout ratio | The company discussed a share repurchase policy with a focus on a 70% total payout ratio. However, the policy has been temporarily withdrawn |
| Acquisition of treasury shares | The policy on share repurchases from FY2026 onward has been temporarily withdrawn. The amount, number of shares and period covered by the repurchase authorization are not disclosed |
| Key points of the Q&A | Issues FY2026 plan for domestic customer sales / Summary of response While carefully assessing the external environment, the company will steadily implement sales initiatives, including strengthening its customer base and product offering, Issues Planned decline in inbound sales / Summary of response The plan incorporates the impact of foreign exchange fluctuations and higher fuel surcharges, while the company aims to mitigate the impact by creating experiential value and improving repeat rates, Issues Improvement in merchandise profit margin / Summary of response The company will expand sales in the high-margin fashion category, develop products and make use of sales channels including e-commerce, Issues Selling, general and administrative expense reductions / Summary of response The company will continue rigorous expense controls and labor-saving measures in back-office operations through digital transformation, while managing costs overall, Issues Increase in profit from overseas department store operations / Summary of response Singapore is expected to achieve higher revenue and profit by strengthening its customer base and product offering; Shanghai and Siam are expected to return to profitability following renovations; and Vietnam is expected to post a slight decline in profit due to foreign exchange effects, Issues Growth in domestic commercial development operations / Summary of response Profit growth at shopping centers will be moderate because customer attraction is being prioritized in the shift to next-generation shopping centers, but the company places greater importance on the strategic value to the group as a whole, Issues Share-repurchase policy / Summary of response The policy was temporarily withdrawn in light of the purchase and cancellation of the CBs. If free cash flow exceeds expectations, the company will allocate earnings appropriately, Issues Financial Leverage / Summary of response The company will gradually shift from prioritizing debt reduction to using debt, and will consider the appropriate use of leverage while monitoring interest rate trends, Issues Governance change / Summary of response The company will transition to a company with an audit and supervisory committee to enhance transparency and objectivity and secure time for discussions on its growth strategy |
| New initiatives | Transition to a company with an Audit & Supervisory Committee, Shift to next-generation shopping centers, Labor-saving measures in back-office operations using digital transformation, Creation of experiential value and improvement of inbound customer repeat rates, Product development and sourcing in high-margin fashion categories, including women's apparel and miscellaneous goods |
Items this document does not state (16)
Net SalesOrdinary incomeNet incomeGross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendCapital expendituresOrders received and order backlogMarket Size / Share
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.Because the company completed the purchase and cancellation of the CBs, it temporarily withdrew its policy on share repurchases from FY2026 onward. Going forward, if free cash flow generated exceeds expectations, the company plans to allocate earnings with a focus on balancing the interests of multiple stakeholders, including shareholder returns, while prioritizing growth investment and human capital investment.
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.