J. Front Retailing (3068) Q2 2026 earnings summary

Executive summary

• H1 FY2025 saw strong performance in SC and Developer segments, but Department Store profits declined due to a sharp slowdown in inbound and duty-free sales despite robust gaisho sales.

• Operating profit was roughly in line with plan, supported by increased other operating income, but overall profit fell due to higher costs and lower Department Store revenue.

• Profit attributable to owners of parent decreased 36.9% YoY to ¥18.3 billion.

• The company executed strategic initiatives, including large-scale store renovations, new content launches, and a ¥15 billion share buyback.

Financial highlights

• H1 FY2025 gross sales rose 2.0% YoY to ¥622.5 billion; revenue increased 5.0% YoY to ¥219.9 billion.

• Business profit dropped 13.2% YoY to ¥28.1 billion; operating profit fell 23.9% YoY to ¥29.9 billion.

• Profit attributable to owners of parent decreased 36.9% YoY to ¥18.3 billion.

• Basic earnings per share declined to ¥72.80 from ¥111.86 YoY.

• Interim dividend per share increased by ¥5 YoY to ¥27.

Outlook and guidance

• Full-year sales revenue forecast revised downward to ¥452.0 billion (down 1.5% from previous forecast).

• Operating profit forecast at ¥44.0 billion (−24.4% YoY); profit attributable to owners of parent at ¥26.0 billion (−37.2% YoY).

• Basic earnings per share forecast reduced to ¥103.13.

• Annual dividend per share expected to rise by ¥2 to ¥54.