J. FRONT RETAILING published its second-quarter earnings summary〔IFRS〕for the fiscal year ending February 2027. The closure of sales floors associated with the renovation of Daimaru Umeda reduced revenue, while fluctuations in orders in the developer business are also undermining earnings stability.
The company, whose core businesses are the Daimaru and Matsuzakaya department stores, reported its second-quarter results together with the publication of its earnings summary. Sales to commercial customers and duty-free sales remained solid, while the closure of sales floors associated with the renovation of Daimaru Umeda has been identified as a factor behind the decline in sales.
The latest results are said to have once again exposed issues in the earnings structure of the department store business. Sales to affluent customers through commercial sales and duty-free channels were strong, but store renovations and fluctuations in orders in the developer business constrained overall profit growth.
The acquired imported wine sales business is positioned as a measure under the medium-term plan to expand high-value customer touchpoints. Expansion of commercial facility operations is also under way, including major renovations at PARCO and the opening of HAERA.
Fluctuations in orders in the developer business are said to leave issues regarding earnings stability. At the same time, the company is expected to continue its growth strategy centred on affluent customer assets, including commercial sales and duty-free sales.