J. Front Retailing (3068) Q3 2026 earnings summary

Executive summary

• 3Q (September–November) saw steady sales and business profit growth, slightly exceeding plan, despite uncertainties from declining Chinese visitors.

• Sales revenue for the nine months ended November 30, 2025, rose 3.8% year-over-year to ¥328,127 million, driven by domestic customer sales in the Department Store and SC Businesses, despite a sharp drop in duty-free sales and a reactionary decrease from prior year one-time gains.

• Business profit declined 7.4% year-over-year to ¥41,511 million, and operating profit fell 20.4% to ¥40,692 million, mainly due to the absence of last year's gain on step acquisition and increased operating expenses.

• Profit attributable to owners of parent dropped 33.4% year-over-year to ¥24,684 million.

• Group reorganization in September 2024 led to retroactive adjustments in prior-year results.

Financial highlights

• 3Q gross sales were ¥317.7B (+4.6% YoY), revenue ¥108.2B (+1.5% YoY), and business profit ¥13.3B (+¥0.9B YoY).

• Gross sales for the nine months were ¥940,365 million, up 2.9% year-over-year.

• Basic earnings per share for the period was ¥98.33, down from ¥143.04 in the prior year.

• Free cash flow remained positive at ¥40B, despite a ¥13.7B YoY decrease.

• Cash and cash equivalents at period end were ¥32,610 million, a decrease of ¥22,365 million from the previous fiscal year-end.

Outlook and guidance

• Full-year sales revenue forecast is ¥452,000 million (+2.3% year-over-year), with profit attributable to owners of parent projected at ¥26,000 million (-37.2% year-over-year).

• Second-half outlook aims to meet October’s forecast, though the impact of fewer Chinese visitors remains uncertain.

• No changes to previously announced earnings or dividend forecasts.