J. Front Retailing (3068) Q1 2025 earnings summary

Executive summary

• Q1 revenues and profits rose, driven by strong inbound consumption and robust domestic sales.

• Business profit surged 66.8% year-over-year to ¥16.4B; net profit attributable to owners increased 76.9% to ¥11.3B.

• Upward revision to 1H and full-year forecasts based on Q1 progress; initial plan for Q2 onward remains unchanged.

• New Medium-term Business Plan (FY2024–FY2026) launched, focusing on retail, group synergies, and management foundation.

• Share buyback of up to 8 million shares (max ¥10B) commenced May 1 to improve ROE and optimize equity capital.

Financial highlights

• Q1 gross sales: ¥299.7B, up 13.6% year-over-year; revenue: ¥101.5B, up 8.6%.

• Business profit: ¥16.4B, up 66.8%; operating profit: ¥16.1B, up 58.7%.

• Net profit attributable to owners: ¥11.3B, up 76.9% year-over-year.

• Basic earnings per share rose to ¥43.11 from ¥24.39 a year earlier.

• Total assets as of May 31, 2024, were ¥1,098.5B, down ¥16.2B from February 29, 2024.

Outlook and guidance

• Full-year forecast: gross sales ¥1,215B (+5.5%), sales revenue ¥424.5B (+4.3%), operating profit ¥41.5B (–3.6%), net profit ¥26.5B (–11.4%), EPS ¥103.42.

• 1H gross sales forecast raised to ¥596B (+2.6% YoY).

• Interim dividend forecast raised to ¥20.00 per share; full-year dividend forecast to ¥40.00 per share.

• Forward-looking statements caution risks from economic conditions, interest/exchange rates, and inflation.