Change to net income amid declines in net sales and operating profit

「◆ Secured higher operating income and ordinary income Interim net income 3,580 2,220 △1,359 △38.0」

「As a result, revenue for the current interim consolidated period was ¥57,362 million, down 8.3% year on year, operating profit was ¥3,014 million, up 15.0%, and ordinary profit was ¥3,052 million, up 16.0%. While amounts received for construction cost-sharing and gains on sales of cross-shareholdings were recorded as extraordinary income, losses on the reduction of fixed asset book values and impairment losses on store renovations and other items were recorded as extraordinary losses. After deducting income taxes, interim net income attributable to owners of the parent was ¥2,220 million, down 38.0%.」

「◆ Higher revenue and income from opening an Expo 2025 Osaka, Kansai, Japan official store」

「As a result, revenue for the current interim consolidated period was ¥62,546 million, up 12.1% year on year, operating profit was ¥2,620 million, up 32.2%, and ordinary profit was ¥2,630 million, up 44.5%. While compensation received in connection with the closure of the Nagoya store was recorded as extraordinary income, store closure losses related to the closure of the Nagoya store and impairment losses on store renovations and other items were recorded as extraordinary losses. After deducting income taxes, interim net income attributable to owners of the parent was ¥3,580 million, up 151.5%.」

「As a result, the Group's revenue was ¥115,107 million, up 1.4% from the previous fiscal year, operating profit was ¥5,353 million, up 37.2%, and ordinary profit was ¥5,148 million, up 33.2%. After recording gains on sales of investment securities as extraordinary income, impairment losses on compensation payments, store renovations and other items as extraordinary losses, and deducting income taxes, net income attributable to owners of the parent was ¥3,484 million, up 25.4%.」

「As a result, revenue for the current interim consolidated period was ¥55,785 million, down 0.3% year on year, operating profit was ¥1,983 million, up 31.7%, and ordinary profit was ¥1,820 million, up 30.3%. After recording impairment losses on store renovations and other items as extraordinary losses and deducting income taxes, interim net income attributable to owners of the parent was ¥1,423 million, up 20.3%.」

「As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥27,622 million, up 4.0% year on year, operating profit was ¥1,010 million, up 320.9% year on year, and ordinary profit was ¥954 million, up 587.8% year on year. After recording impairment losses on store renovations and other items as extraordinary losses and deducting income taxes, quarterly net income attributable to owners of the parent was ¥789 million, up 339.3% year on year.」

「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥82,207 million, up 7.3% year on year, operating profit was ¥1,987 million, compared with an operating loss of ¥433 million in the same period of the previous year, and ordinary profit was ¥1,903 million, compared with an ordinary loss of ¥70 million in the same period of the previous year. After recording impairment losses on store renovations and other items as extraordinary losses and deducting income taxes, quarterly net income attributable to owners of the parent was ¥1,537 million, up 464.2% year on year.」

「As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥55,981 million, up 9.0% year on year, operating profit was ¥1,505 million, compared with an operating loss of ¥127 million in the same period of the previous year, and ordinary profit was ¥1,397 million, up 695.7% year on year. After recording impairment losses on store renovations and other items as extraordinary losses and deducting income taxes, quarterly net income attributable to owners of the parent was ¥1,182 million, up 180.3% year on year.」

「As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥26,562 million, up 7.9% year on year, operating profit was ¥240 million, compared with an operating loss of ¥219 million in the same period of the previous year, and ordinary profit was ¥138 million, compared with an ordinary loss of ¥167 million in the same period of the previous year. After recording impairment losses on store renovations and other items as extraordinary losses and deducting income taxes, quarterly net income attributable to owners of the parent was ¥179 million, up 377.2% year on year.」

「As a result, the Group's revenue was ¥107,848 million, up 9.9% from the previous fiscal year, and operating profit was ¥1,566 million, compared with an operating loss of ¥1,399 million in the previous fiscal year. Ordinary profit was ¥1,945 million, compared with an ordinary loss of ¥572 million in the previous fiscal year, due to the recording of employment adjustment subsidies and other items as non-operating income. After accounting for income taxes and other adjustments, net income attributable to owners of the parent was ¥1,893 million, compared with a net loss attributable to owners of the parent of ¥775 million in the previous fiscal year.」

「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥76,587 million, up 10.6% year on year, operating loss was ¥433 million, compared with an operating loss of ¥2,674 million in the same period of the previous year, and ordinary loss was ¥70 million, compared with an ordinary loss of ¥2,063 million in the same period of the previous year, due to the recording of employment adjustment subsidies and other items as non-operating income. An adjustment of negative ¥590 million in income taxes deferred was recorded, among other factors, resulting in quarterly net income attributable to owners of the parent of ¥272 million, compared with a quarterly net loss attributable to owners of the parent of ¥1,666 million in the same period of the previous year.」

「As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥51,360 million, up 8.6% year on year, operating loss was ¥127 million, compared with an operating loss of ¥1,435 million in the same period of the previous year, and ordinary profit was ¥175 million, compared with an ordinary loss of ¥976 million in the same period of the previous year, due to the recording of employment adjustment subsidies and other items as non-operating income. An adjustment of negative ¥411 million in income taxes deferred was recorded, among other factors, resulting in quarterly net income attributable to owners of the parent of ¥422 million, compared with a quarterly net loss attributable to owners of the parent of ¥881 million in the same period of the previous year.」

「As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥24,614 million, up 13.2% year on year, operating loss was ¥219 million, compared with an operating loss of ¥666 million in the same period of the previous year, and ordinary loss was ¥167 million, compared with an ordinary loss of ¥426 million in the same period of the previous year. An adjustment of negative ¥247 million in income taxes deferred was recorded, among other factors, resulting in quarterly net income attributable to owners of the parent of ¥37 million, compared with a quarterly net loss attributable to owners of the parent of ¥1,018 million in the same period of the previous year.」

「As a result, revenue for the current consolidated fiscal year was ¥98,146 million, compared with ¥218,351 million in the previous fiscal year. Despite substantial efforts by each company to reduce expenses, operating loss was ¥1,399 million, compared with an operating loss of ¥2,020 million in the previous fiscal year, and ordinary loss was ¥572 million, compared with an ordinary loss of ¥1,293 million in the previous fiscal year. Cooperation payments for business suspensions and employment adjustment subsidies totaling ¥951 million were recorded as extraordinary income, while store closure losses and other items totaling ¥1,286 million were recorded as extraordinary losses. After accounting for income taxes and other adjustments, net loss attributable to owners of the parent was, regrettably, ¥775 million, compared with a net loss attributable to owners of the parent of ¥4,949 million in the previous fiscal year.」

「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥69,270 million, compared with ¥153,352 million in the same period of the previous year, operating loss was ¥2,674 million, compared with an operating loss of ¥3,055 million in the same period of the previous year, and ordinary loss was ¥2,063 million, compared with an ordinary loss of ¥2,668 million in the same period of the previous year. Cooperation payments for business suspensions and employment adjustment subsidies during the suspension period totaling ¥951 million were recorded as extraordinary income. Store closure losses of ¥1,264 million were recorded as extraordinary losses in connection with temporary closures implemented in response to the state of emergency declared over the spread of COVID-19, and an adjustment of negative ¥768 million in income taxes deferred was recorded, among other factors, resulting in a quarterly net loss attributable to owners of the parent of ¥1,666 million, compared with a quarterly net loss attributable to owners of the parent of ¥5,423 million in the same period of the previous year.」

「As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥47,285 million, compared with ¥98,747 million in the same period of the previous year, operating loss was ¥1,435 million, compared with an operating loss of ¥2,188 million in the same period of the previous year, and ordinary loss was ¥976 million, compared with an ordinary loss of ¥1,951 million in the same period of the previous year.」

「As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥21,750 million, compared with ¥39,056 million in the same period of the previous year, operating loss was ¥666 million, compared with an operating loss of ¥2,287 million in the same period of the previous year, and ordinary loss was ¥426 million, compared with an ordinary loss of ¥2,334 million in the same period of the previous year. Although ¥1,200 million in store closure losses was recorded as an extraordinary loss in connection with temporary closures implemented in response to the state of emergency declared over the spread of COVID-19, an adjustment of negative ¥616 million in income taxes deferred was recorded, among other factors, resulting in a quarterly net loss attributable to owners of the parent of ¥1,018 million, compared with a quarterly net loss attributable to owners of the parent of ¥6,435 million in the same period of the previous year.」

「As a result, revenue for the current consolidated fiscal year was ¥218,351 million, down 23.0% from the previous fiscal year. Despite substantial efforts by each company to reduce expenses, the significant impact of lower department store revenue resulted in an operating loss of ¥2,020 million, compared with operating profit of ¥4,529 million in the previous fiscal year, and an ordinary loss of ¥1,293 million, compared with ordinary profit of ¥4,479 million in the previous fiscal year.」

「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥153,352 million, down 25.8% year on year, operating loss was ¥3,055 million, compared with operating profit of ¥2,373 million in the same period of the previous year, and ordinary loss was ¥2,668 million, compared with ordinary profit of ¥2,359 million in the same period of the previous year. Although ¥361 million in employment adjustment subsidies was recorded as extraordinary income, store closure losses of ¥2,015 million and impairment losses on investment securities of ¥114 million were recorded as extraordinary losses in connection with temporary closures implemented in response to the state of emergency declared over the spread of COVID-19. In addition, an adjustment of ¥928 million in income taxes deferred was recorded due to the reversal of deferred tax assets, resulting in a quarterly net loss attributable to owners of the parent of ¥5,423 million, compared with quarterly net income attributable to owners of the parent of ¥1,749 million in the same period of the previous year.」

「As a result, net sales for the second quarter cumulative period were ¥98,747 million, down 29.1% year on year, operating loss was ¥2,188 million, compared with operating profit of ¥2,147 million in the same period of the previous year, and ordinary loss was ¥1,951 million, compared with ordinary profit of ¥2,071 million. Although ¥361 million in employment adjustment subsidies was recorded as extraordinary income, store closure losses of ¥2,060 million were recorded as extraordinary losses resulting from temporary closures implemented in response to the state of emergency declared following the spread of COVID-19, along with ¥1,205 million in income tax adjustments arising from the reversal of deferred tax assets and other items. As a result, loss attributable to owners of the parent was ¥4,953 million, compared with profit attributable to owners of the parent of ¥1,622 million in the same period of the previous year.」

「Net sales for the first quarter cumulative period were ¥39,056 million, down 44.7% year on year, operating loss was ¥2,287 million, compared with operating profit of ¥1,153 million in the same period of the previous year, and ordinary loss was ¥2,334 million, compared with ordinary profit of ¥1,077 million. After recording ¥2,058 million in store closure losses as extraordinary losses resulting from temporary closures implemented in response to the state of emergency declared following the spread of COVID-19, and recording ¥2,031 million in income tax adjustments arising from the reversal of deferred tax assets and other items, loss attributable to owners of the parent was ¥6,435 million, compared with profit attributable to owners of the parent of ¥915 million in the same period of the previous year.」

「As a result, net sales for the fiscal year were ¥283,466 million, up 0.3% year on year, but operating profit was ¥4,529 million, down 23.0%, and ordinary profit was ¥4,479 million, down 18.2%, because of the increased depreciation burden associated with the core system upgrade in the department store business. After deducting extraordinary losses of ¥880 million, including losses on disposal of fixed assets, as well as income taxes, profit attributable to owners of the parent was ¥3,225 million, down 33.6%.」

「As a result, net sales for the third quarter cumulative period were ¥206,808 million, up 0.9% year on year, while operating profit was ¥2,373 million, down 23.8%, and ordinary profit was ¥2,359 million, down 15.5%. After recording ¥483 million in losses on disposal of fixed assets and other items and ¥141 million in impairment losses as extraordinary losses, and adjusting for income taxes, profit attributable to owners of the parent was ¥1,749 million, down 27.4%.」

「As a result, net sales for the second quarter cumulative period were ¥139,298 million, down 0.2% year on year, operating profit was ¥2,147 million, down 13.6%, and ordinary profit was ¥2,071 million, down 6.0%. After recording ¥270 million in losses on disposal of fixed assets and other items and ¥141 million in impairment losses as extraordinary losses, and adjusting for income taxes, profit attributable to owners of the parent was ¥1,622 million, down 15.0%.」

「As a result, net sales for the first quarter cumulative period were ¥70,573 million, down 0.1% year on year, operating profit was ¥1,153 million, down 10.6%, and ordinary profit was ¥1,077 million, down 8.4%. After recording ¥206 million in losses on disposal of fixed assets and other items as extraordinary losses and adjusting for income taxes, profit attributable to owners of the parent was ¥915 million, down 21.6%.」

「As a result, net sales for the fiscal year were ¥282,700 million, up 0.2% year on year, operating profit was ¥5,884 million, up 20.4%, and ordinary profit was ¥5,478 million, up 23.9%. After deducting extraordinary losses of ¥798 million, including losses on disposal of fixed assets and losses on sales of investment securities, as well as income taxes, profit attributable to owners of the parent was ¥4,853 million, up 231.9%.」

「As a result, net sales for the third quarter cumulative period were ¥204,878 million, up 1.4% year on year, operating profit was ¥3,114 million, up 86.2%, and ordinary profit was ¥2,793 million, up 108.0%. After recording ¥374 million in losses on disposal of fixed assets and other items as extraordinary losses and adjusting for income taxes, profit attributable to owners of the parent was ¥2,409 million, up 66.8%.」

「As a result, net sales for the second quarter cumulative period were ¥139,509 million, up 2.9% year on year, operating profit was ¥2,485 million, up 34.3%, and ordinary profit was ¥2,202 million, up 33.3%. After recording ¥275 million in losses on disposal of fixed assets and other items as extraordinary losses and adjusting for income taxes, profit attributable to owners of the parent was ¥1,909 million, up 7.3%.」

「As a result, net sales for the first quarter cumulative period were ¥70,614 million, up 5.5% year on year, operating profit was ¥1,290 million, up 25.5%, and ordinary profit was ¥1,175 million, up 27.5%. After recording ¥116 million in losses on disposal of fixed assets and other items as extraordinary losses and adjusting for income taxes, profit attributable to owners of the parent was ¥1,167 million, up 23.3%.」

「As a result, net sales for the fiscal year were ¥282,211 million, up 5.9% year on year, operating profit was ¥4,887 million, up 59.6%, and ordinary profit was ¥4,420 million, up 63.8%. However, following a review of asset grouping under the accounting standard for impairment of fixed assets in formulating the company's future store renovation policy, impairment losses were recorded on the assets used in the Ikoma store business, including land and buildings, where indications of impairment were identified because of a significant decline in fair value. As a result, profit attributable to owners of the parent was ¥1,462 million, down 14.8%.」

「As a result, net sales for the third quarter cumulative period were ¥202,068 million, up 5.3% year on year, operating profit was ¥1,671 million, compared with ¥66 million in the same period of the previous year, and ordinary profit was ¥1,342 million, compared with an ordinary loss of ¥131 million. After recording a ¥340 million gain on the sale of fixed assets and a ¥100 million reversal of environmental protection expenses as extraordinary income, and ¥72 million in losses on disposal of fixed assets and other items as extraordinary losses, and adjusting for income taxes, profit attributable to owners of the parent was ¥1,444 million, up 470.6%.」

「As a result, net sales for the second quarter cumulative period were ¥135,565 million, up 3.3% year on year, operating profit was ¥1,851 million, up 105.2%, and ordinary profit was ¥1,652 million, up 119.2%. After recording a ¥340 million gain on the sale of fixed assets and a ¥101 million reversal of environmental protection expenses as extraordinary income, and ¥64 million in losses on disposal of fixed assets and other items as extraordinary losses, and deducting income taxes, profit attributable to owners of the parent was ¥1,779 million, up 92.1%.」

「As a result, net sales for the first quarter cumulative period were ¥66,926 million, up 1.7% year on year, operating profit was ¥1,028 million, up 22.8%, and ordinary profit was ¥922 million, up 22.0%. After recording a ¥340 million gain on the sale of fixed assets as extraordinary income and deducting income taxes, profit attributable to owners of the parent was ¥947 million, up 79.0%.」

「As a result, net sales for the fiscal year were ¥266,477 million, down 1.6% year on year, operating profit was ¥3,062 million, down 0.8%, and ordinary profit was ¥2,698 million, up 6.4%. After adding extraordinary income of ¥660 million, including settlement proceeds, and deducting extraordinary losses of ¥1,688 million, including impairment losses, as well as income taxes, profit attributable to owners of the parent was ¥1,715 million, up 62.7%.」

「As a result, net sales for the third quarter cumulative period were ¥191,907 million, down 1.7% year on year, operating profit was ¥66 million, down 82.6%, and ordinary loss was ¥131 million, compared with an ordinary loss of ¥95 million in the same period of the previous year. After recording a ¥496 million settlement gain received from mediation over a reduction in overpaid rent and ¥163 million in proceeds from construction cost contributions as extraordinary income, ¥593 million in losses on disposal of fixed assets and other items, ¥67 million in compensation paid and ¥18 million in provision for losses on dissolution of the employees' pension fund as extraordinary losses, and adjusting for income taxes, profit attributable to owners of the parent was ¥253 million, compared with a loss attributable to owners of the parent of ¥643 million in the same period of the previous year.」

「As a result, net sales for the second quarter cumulative period were ¥131,205 million, down 1.0% year on year, while operating profit was ¥902 million, up 5.1%, and ordinary profit was ¥753 million, up 33.3%, owing partly to improved gross margins at 株式会社近創. After recording a ¥496 million settlement gain received from mediation over a reduction in overpaid rent and ¥111 million in proceeds from construction cost contributions as extraordinary income, ¥419 million in losses on disposal of fixed assets and other items, ¥67 million in compensation paid and ¥18 million in provision for losses on dissolution of the employees' pension fund as extraordinary losses, and deducting income taxes, profit attributable to owners of the parent was ¥926 million, up 145.2%.」

「As a result, net sales for the first quarter cumulative period were ¥65,835 million, down 0.3% year on year, while operating profit was ¥837 million, up 14.1%, and ordinary profit was ¥755 million, up 43.7%, owing partly to improved gross margins at 株式会社近創. After recording ¥111 million in proceeds from construction cost contributions and other items as extraordinary income, ¥267 million in losses on disposal of fixed assets and other items and ¥18 million in provision for losses on dissolution of the employees' pension fund as extraordinary losses, and deducting income taxes, profit attributable to owners of the parent was ¥528 million, up 137.5%.」