[J. Front Retailing FY2026 Q2 Earnings Briefing] Business profit declines in the first half, but full-year profit is set to reach a record ¥53.5 billion, with group transaction volume up 15% following the opening of HAERA

J. Front Retailing announced its financial results for the interim period of the fiscal year ending February 2027. Gross sales rose 2.5% year on year to ¥638.2 billion, while business profit fell 5.6% to ¥26.5 billion, operating profit fell 10.5% to ¥26.8 billion, and interim profit fell 5.3% to ¥17.3 billion. The main factors cited were the closure of selling space due to major renovations at Daimaru Umeda and the decline following the boost from Osaka-Kansai Expo-related sales in the previous year.

The impact of the HAERA opening was pronounced, with group-wide transaction value running approximately 15% above the previous year from June through August. Visitor numbers at Matsuzakaya Nagoya and Nagoya PARCO also increased 5% and 7%, respectively, year on year, due to the HAERA effect.

By segment, department stores slowed, with revenue of ¥128.3 billion (down 1.0% year on year) and business profit of ¥15.5 billion (down 2.6%). Shopping centers increased profit, with revenue of ¥35.5 billion (up 7.3%) and business profit of ¥8.4 billion (up 1.3%). The developer business declined, with sales of ¥39.0 billion (down 9.8%) and profit of ¥3.6 billion (down 18.4%). Payment and financial services, however, saw profit surge 75.7% despite flat sales.

The full-year forecast was revised upward to business profit of ¥53.5 billion and gross sales of ¥1.36 trillion. The operating profit forecast was revised downward to ¥46.0 billion, while profit for the year was left unchanged at ¥29.0 billion. Duty-free sales are expected to reach ¥53.4 billion, and sales across all stores excluding Daimaru Umeda are expected to remain firm in the second half. The company plans an interim dividend of ¥28 and a full-year dividend of ¥56, and stated its policy of achieving an ROE of 8% at an early date.