Worth reading
79Important
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
1870
Millions of yen (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter (first half) of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥333,338 million+0.1%
Operating profit¥13,725 million+15.8%
Ordinary income¥14,812 million+19.3%
Net income¥14,890 million+115.5%
Selling, general and administrative expenses¥139,869 million
Results for the three months of the current quarter
Gross sales
¥295,268 million+4.7%
Net Sales
¥168,797 million-0.3%
Gross profit
¥77,321 million+2.6%
Selling, general and administrative expenses
¥70,874 million+2.7%
Operating profit
¥6,447 million+1.5%
Ordinary income
¥6,743 million+7.5%
Profit attributable to owners of the parent
¥4,625 million+47.8%
Full-year earnings forecast
Gross sales
¥1,230,500 million
Net Sales
¥695,000 million
Operating profit
¥33,500 million
Ordinary income
¥34,000 million
Profit attributable to owners of the parent
¥23,500 million
Dividend per share
¥48
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Overseas VIP members102% of the full-year target
VIP customer sales57% target progress
Inbound salesProgress is on track against the full-year target of ¥115 billion
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit exceeded the initial forecastBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Department storesTotal-store sales increase +¥32.5 billion, domestic sales increase +¥22.0 billion, inbound sales increase +¥10.5 billion, gross profit increase from higher sales +¥6.8 billion, gross profit margin decline -¥1.5 billion, increase in sales-linked expenses +¥1.3 billion
FoodsSales decline -¥2.4 billion, gross profit margin improvement +¥1.1 billion, restraint of external labor costs, increase in transportation expenses +¥0.3 billion, increase in system costs +¥0.2 billion
Commercial facilitiesNingbo Hankyu +¥0.6 billion, Oi development -¥0.1 billion, H2O commercial development -¥0.2 billion, Hankyu commercial development +¥0.1 billion, other and intersegment adjustments +¥0.1 billion
OtherH2O revenue decline -¥1.4 billion, H2O expense increase -¥0.7 billion, other subsidiaries total -¥0.2 billion, other and intersegment adjustments -¥0.1 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Department store renovation benefits are in line with expectations, inbound sales are progressing well, and the food business forecast incorporates the impact of consumers refraining from purchases ahead of the March tax cut and the effects of converting store formats. Numerical assumptions for foreign exchange rates, raw material prices and other factors: Not disclosedNew initiatives
- Release of an app equipped with a customer program and other features
- Acceleration of business-format conversions and the introduction of new store formats at food supermarkets
- App development for personalized customer outreach
- Expansion of the Machi-uma and Machi-Ken customer service apps and a pilot project for a third Machi service
- Expansion of retail media using signage in food supermarkets
- The next medium-term management plan is scheduled to be announced in May 2027
Key KPIsA metric the company considers important as a management benchmark.
- Domestic sales (department stores)+9% year on yearYear on year against the same period last year+9%
- Hankyu Main Store domestic salesYear-on-year +13%Year on year against the same period last year+13%
- Hanshin Umeda Main Store domestic salesYear-on-year +13%Year on year against the same period last year+13%
- Inbound sales¥297 100 millionYear on year against the same period last year+21%
- VIP sales share47 %Year on year against the same period last year+13pt
- Number of VIP members6.1 10,000 peopleYear on year against the same period last year+18,000 people
- Sales of ¥5 million or more per transaction+57% year on yearYear on year against the same period last year+57%
- Same-store sales at food supermarkets▲1.4% year on yearYear on year against the same period last year▲1.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Food Supermarket Same-Store OperationsCustomer count -2.7%, spend per customer +1.4%, items purchased per customer -0.6%, spend per item +2.0%
Chinese customersCustomer count -29% year on year, exceeding the previous year due to higher spend per customer
Segment results
Department stores
Gross sales
¥317,757 million+10.9%
Operating profit
¥11,564 million+40.4%
Foods
Gross sales
¥205,052 million-3.7%
Operating profit
¥3,287 million-29.0%
Commercial facilities
Gross sales
¥42,804 million+18.8%
Operating profit
¥2,844 million+19.8%
Other
Gross sales
¥20,350 million+2.9%
Operating profit
¥6,152 million-28.2%
Medium-term management plan targets
Medium-Term Management Plan 2024-2026
Operating profit¥32,000 million
Actual and forecast¥33,500 million
Medium-Term Management Plan 2027-2030
Operating profit¥35–40 billion or more
ROE8% or higher
Target fiscal yearFY2030
Financial targets
ROEMedium-term plan target of 6.6% or higher, fiscal 2026 forecast of 7.5%, future target of 8% or higher
ROICMedium-term plan target of 5.9%, fiscal 2026 forecast of 5.9%
Equity ratio46%
Number of stores and locations
13 food supermarkets introduced the new store format. Number of stores at period-end and store openings/closures: Not disclosedCapital expenditures
10,202 Million yen first-half actual
Full-year forecast34,081
Annual Dividend
Annual dividend per share¥48
Acquisition of treasury shares
Buyback limitApproximately ¥30 billion over 3 years
Actual purchases¥301 100 million
Period3 years
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter (first half) of the fiscal year ending March 2027 |
| Net Sales | ¥333,338 million (YoY +0.1%) |
| Operating profit | ¥13,725 million (YoY +15.8%) |
| Ordinary income | ¥14,812 million (YoY +19.3%) |
| Net income | ¥14,890 million (YoY +115.5%) |
| Selling, general and administrative expenses | ¥139,869 million |
| Results for the three months of the current quarter | Gross sales ¥295,268 million (YoY +4.7%) / Net Sales ¥168,797 million (YoY -0.3%) / Gross profit ¥77,321 million (YoY +2.6%) / Selling, general and administrative expenses ¥70,874 million (YoY +2.7%) / Operating profit ¥6,447 million (YoY +1.5%) / Ordinary income ¥6,743 million (YoY +7.5%) / Profit attributable to owners of the parent ¥4,625 million (YoY +47.8%) |
| Full-year earnings forecast | Gross sales ¥1,230,500 million / Net Sales ¥695,000 million / Operating profit ¥33,500 million / Ordinary income ¥34,000 million / Profit attributable to owners of the parent ¥23,500 million / Dividend per share ¥48 |
| Progress against full-year forecast | Overseas VIP members 102% of the full-year target / VIP customer sales 57% target progress / Inbound sales Progress is on track against the full-year target of ¥115 billion |
| Self-assessment against the plan | Operating profit exceeded the initial forecast |
| Segment results | Department stores Gross sales ¥317,757 million (YoY +10.9%) / Operating profit ¥11,564 million (YoY +40.4%) / Foods Gross sales ¥205,052 million (YoY -3.7%) / Operating profit ¥3,287 million (YoY -29.0%) / Commercial facilities Gross sales ¥42,804 million (YoY +18.8%) / Operating profit ¥2,844 million (YoY +19.8%) / Other Gross sales ¥20,350 million (YoY +2.9%) / Operating profit ¥6,152 million (YoY -28.2%) |
| Breakdown of Factors Affecting the Change | Department stores Total-store sales increase +¥32.5 billion, domestic sales increase +¥22.0 billion, inbound sales increase +¥10.5 billion, gross profit increase from higher sales +¥6.8 billion, gross profit margin decline -¥1.5 billion, increase in sales-linked expenses +¥1.3 billion / Foods Sales decline -¥2.4 billion, gross profit margin improvement +¥1.1 billion, restraint of external labor costs, increase in transportation expenses +¥0.3 billion, increase in system costs +¥0.2 billion / Commercial facilities Ningbo Hankyu +¥0.6 billion, Oi development -¥0.1 billion, H2O commercial development -¥0.2 billion, Hankyu commercial development +¥0.1 billion, other and intersegment adjustments +¥0.1 billion / Other H2O revenue decline -¥1.4 billion, H2O expense increase -¥0.7 billion, other subsidiaries total -¥0.2 billion, other and intersegment adjustments -¥0.1 billion |
| Key KPIs | Indicator name Domestic sales (department stores) / Value +9% year on year / Year on year against the same period last year +9%, Indicator name Hankyu Main Store domestic sales / Value Year-on-year +13% / Year on year against the same period last year +13%, Indicator name Hanshin Umeda Main Store domestic sales / Value Year-on-year +13% / Year on year against the same period last year +13%, Indicator name Inbound sales / Value ¥297 100 million / Year on year against the same period last year +21%, Indicator name VIP sales share / Value 47 % / Year on year against the same period last year +13pt, Indicator name Number of VIP members / Value 6.1 10,000 people / Year on year against the same period last year +18,000 people, Indicator name Sales of ¥5 million or more per transaction / Value +57% year on year / Year on year against the same period last year +57%, Indicator name Same-store sales at food supermarkets / Value ▲1.4% year on year / Year on year against the same period last year ▲1.4% |
| Unit price and quantity metrics | Food Supermarket Same-Store Operations Customer count -2.7%, spend per customer +1.4%, items purchased per customer -0.6%, spend per item +2.0% / Chinese customers Customer count -29% year on year, exceeding the previous year due to higher spend per customer |
| Number of stores and locations | 13 food supermarkets introduced the new store format. Number of stores at period-end and store openings/closures: Not disclosed |
| Assumptions Underlying the Business Outlook | Department store renovation benefits are in line with expectations, inbound sales are progressing well, and the food business forecast incorporates the impact of consumers refraining from purchases ahead of the March tax cut and the effects of converting store formats. Numerical assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed |
| Medium-term management plan targets | Medium-Term Management Plan 2024-2026 Operating profit ¥32,000 million / Actual and forecast ¥33,500 million / Medium-Term Management Plan 2027-2030 Operating profit ¥35–40 billion or more / ROE 8% or higher / Target fiscal year FY2030 |
| Financial targets | ROE Medium-term plan target of 6.6% or higher, fiscal 2026 forecast of 7.5%, future target of 8% or higher / ROIC Medium-term plan target of 5.9%, fiscal 2026 forecast of 5.9% / Equity ratio 46% |
| Annual Dividend | Annual dividend per share ¥48 / Interim and Year-End Breakdown Not disclosed |
| Acquisition of treasury shares | Buyback limit Approximately ¥30 billion over 3 years / Actual purchases ¥301 100 million / Period 3 years |
| Capital expenditures | 10,202 Million yen (first-half actual) |
| New initiatives | Release of an app equipped with a customer program and other features, Acceleration of business-format conversions and the introduction of new store formats at food supermarkets, App development for personalized customer outreach, Expansion of the Machi-uma and Machi-Ken customer service apps and a pilot project for a third Machi service, Expansion of retail media using signage in food supermarkets, The next medium-term management plan is scheduled to be announced in May 2027 |
Items this document does not state (8)
Gross Profit MarginOperating profit marginNumber 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.Domestic sales and inbound sales grew as a result of the renovations at Hankyu Main Store and Hanshin Umeda Main Store, with the department store business driving overall performance. The food business reported lower revenue and lower profit due to the pullback from the rice demand surge last year, weather conditions and changes in promotional activities, but this was offset by strong performance in the department store and commercial facilities businesses. The full-year forecast revisions reflect progress in each business, the impact of changes to the department stores' tax-free shopping system and the second-half forecast for the food business.
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