Isetan Mitsukoshi Holdings Ltd. reported first-quarter revenue of ¥128.9 billion and operating profit of ¥18.9 billion on 13 August, both higher than in the same period of the previous year, and also raised its full-year outlook. It announced a share split and changes to its dividend and shareholder benefits on the same day, while changes were also seen in the share price and technical indicators from the following day onward.
In the first-quarter results released on 13 August, revenue was ¥128.9 billion, up 3.8% year on year, while operating profit was ¥18.9 billion, up 20.6%. Following the results, full-year guidance was also raised to revenue of ¥562.0 billion and operating profit of ¥84.0 billion, highlighting earnings growth led by the department-store business. The results summary indicated that high-value customers and demand from international visitors were driving the department stores.
Revenue from the real estate business also rose 40.8% year on year, providing another factor supporting overall earnings. Meanwhile, reports on 14 August said that the highest rating had been maintained and the target price raised, but the share price moved lower to ¥3,548.
A Parabolic buy signal emerged on 13 August, and the company also appeared on the list of stocks showing reversals on 20 August, providing intermittent technical signals. The share price continued to trade in the upper ¥3,000s immediately after the results. On the same day, the company announced a 1-for-2 share split, a revision to its dividend forecast and changes to its shareholder benefit program, with the minimum holding requirement for benefits remaining at 100 shares after the split.
The simultaneous announcement of the share split and the revised shareholder return terms also drew attention to both capital policy and financial measures.