Takashimaya Company (8233) Q2 2025 earnings summary

Executive summary

• Achieved record-high operating and ordinary profit for the second consecutive year, with all profit categories surpassing forecasts on a consolidated basis.

• Growth driven by strong domestic and inbound sales at Japanese department stores, robust overseas property development, and improved finance and construction segments.

• 2-for-1 stock split effective September 1, 2024, and segment reporting revised to enhance ROIC management.

• Overseas Department Stores and Commercial Property Development in Vietnam showed robust growth.

• Construction & Design segment significantly outperformed forecasts due to increased large-scale project orders.

Financial highlights

• H1 operating revenue: ¥506.7bn (+13.2% YoY); operating profit: ¥28.8bn (+38.2% YoY); ordinary profit: ¥30.2bn (+36.3% YoY).

• Profit attributable to owners: ¥19.1bn (+27.5% YoY); EPS: ¥60.47 (pre-split basis).

• Gross profit: ¥146.9bn (+¥13.3bn YoY); SG&A expenses: ¥118.2bn (+¥5.3bn YoY); operating profit margin: 5.7% (+1.0pt YoY).

• Equity ratio: 36.6%; total assets: ¥1,298.6bn; net assets: ¥500.9bn.

• Net cash provided by operating activities: ¥32.2bn; cash and cash equivalents: ¥99.2bn at period end.

Outlook and guidance

• Full-year forecast unchanged for record-high profits; operating revenue projected at ¥1,035.0bn (+8.7% YoY), but segment guidance revised downward for inbound sales.

• Operating profit forecast: ¥55.0bn (+19.7% YoY); ordinary profit: ¥58.0bn (+8.8bn YoY); net profit: ¥38.0bn (+20.2% YoY); EPS: ¥121.28 (post-split).

• ROIC forecast at 6.2% (vs. 5.5% previous year); ROE at 8.3% (vs. 7.3%).

• Annual dividend forecast: ¥46 per share (pre-split), ¥23 (post-split); dividend policy adjusted for split.

• Construction & Design forecast revised upward due to H1 order growth.