Takashimaya raised its earnings forecast for the fiscal year ending February 2027 and increased its annual dividend to ¥44. This article compares shareholder returns at 3 department-store companies, including Isetan Mitsukoshi Holdings and J. Front Retailing.
In its interim results for the fiscal year ending February 2027, Takashimaya reported operating revenue of ¥244.1 billion, up 3.7% year on year, operating profit of ¥27.5 billion, up 16.4%, and ordinary profit of ¥28.0 billion, up 27.5%. Inbound demand and purchases by domestic customers supported its performance. It raised its full-year ordinary profit forecast from ¥57.0 billion to ¥60.0 billion and increased its annual dividend forecast from ¥40 to ¥44. This would represent a substantial increase from the previous fiscal year's annual dividend of ¥34.
Isetan Mitsukoshi Holdings, meanwhile, reported first-quarter revenue of ¥128.9 billion and operating profit of ¥18.8 billion for the fiscal year ending March 2027, both up year on year. Operating profit reached a record high for a first quarter. The company split each share into 2 shares in October. Shareholder benefits now apply to holdings of 100 shares or more, with a 10% shopping discount for holdings of 100 shares or more but fewer than 200 shares and a ¥150,000 usage limit. The annual dividend forecast on a post-split basis is ¥40, implying an expected dividend yield of approximately 2.2%.
J. Front Retailing reported first-half revenue of ¥213.8 billion and operating profit of ¥26.8 billion for the fiscal year ending February 2027, both down year on year. The decline was affected by the pullback in Expo-related demand and renovations at the Daimaru Umeda store. Its annual dividend forecast is ¥56, implying an expected dividend yield of approximately 2.1%. Shareholders holding 100 shares or more receive a 10% discount card usable at Daimaru and Matsuzakaya stores, with an annual shopping limit of ¥500,000 for holdings of 100 shares.
Takashimaya raised its earnings forecast and dividend, Isetan Mitsukoshi Holdings delivered strong profit growth, and J. Front is distinguished by the usage limit on its shareholder benefits. When choosing department-store stocks, investors may consider not only dividend yield but also the stores they regularly use and the value of discounts available through shareholder benefits.