This week, it emerged that activist investor 3D Investment Partners had become involved in J. FRONT RETAILING as a major shareholder. In its latest first-half results, revenue was ¥213.821 billion and operating profit was ¥26.813 billion, representing lower revenue and profit year on year.
J. FRONT RETAILING is a major department-store group that operates Daimaru and Matsuzakaya, with a nationwide presence centered on the Kansai region and Nagoya. The market has focused on the emergence of Singapore-based fund 3D Investment Partners, known as an activist investor, as a major shareholder in the company, and its involvement has also affected the direction of the share price.
In the latest first-half results for March-August, revenue was ¥213.821 billion, down 2.8% year on year, and operating profit was ¥26.813 billion, down 10.5%. Performance was affected by the lack of repeat demand related to the Osaka-Kansai Expo and the closure of sales floors during renovations at Daimaru Umeda, while the company also recorded a loss on business restructuring. Strong performance at Shibuya PARCO and the new HAERA commercial facility provided support, and the company aims to increase revenue and profit for the full year.
In the latest shareholder developments, 3D Investment Partners increased its stake from the initial 5.10% to 12.73%. Kabutan News notes that the fund has continued to increase its holdings. The margin trading ratio was in the 0.7x range, indicating a short-heavy position.