Takashimaya Company (8233) Q2 2026 earnings summary

Executive summary

• Consolidated profits declined due to a sharp drop in operating profit from Japanese department stores, but net profit rose on gains from non-core asset sales and cost reductions, with all profit categories exceeding the June forecast.

• Operating revenue for the six months ended August 31, 2025, was ¥235,362 million, down 3.3% year-over-year; operating profit fell 17.8% to ¥23,653 million; business profit dropped 20.2% to ¥25,153 million; ordinary profit decreased 27.2% to ¥22,010 million; profit attributable to owners of parent rose 11.2% to ¥21,219 million.

• Domestic customer sales remained strong, but inbound traveler sales fell sharply year-over-year, though both exceeded forecasts due to a partial recovery and cost-cutting.

• Finance and Construction & Design segments posted higher revenue and profit, exceeding forecasts.

• Comprehensive income declined 31.3% year-over-year to ¥17,393 million.

Financial highlights

• H1 total operating revenue: ¥487.2bn (down 3.9% YoY, up 0.5% vs. forecast); operating profit: ¥23.7bn (down 5.1% YoY, up ¥2.7bn vs. forecast); net profit: ¥21.2bn (up ¥2.1bn YoY, up ¥0.7bn vs. forecast).

• Gross profit: ¥143.5bn (down 3.4% YoY, up ¥3.6bn vs. forecast); SG&A expenses: ¥119.8bn (up ¥1.7bn YoY, up ¥0.9bn vs. forecast).

• Business profit: ¥25.2bn (down 6.4% YoY, up ¥1.6bn vs. forecast); ordinary profit: ¥22.0bn (down 8.2% YoY, up ¥1.5bn vs. forecast).

• Total assets as of August 31, 2025, were ¥1,299,285 million; net assets were ¥508,368 million; equity ratio improved to 37.1%.

• Net cash provided by operating activities was ¥14,560 million, a significant decrease from the previous year; cash and cash equivalents at period-end were ¥74,207 million, down ¥14,352 million.

Outlook and guidance

• Full-year operating profit forecast revised upward by ¥2.5bn to ¥52.5bn; business profit, ordinary profit, and net profit unchanged.

• Full-year forecast for FY2026: total operating revenue ¥1,015,000 million (down 1.7% YoY), operating profit ¥52,500 million (down 8.7%), profit attributable to owners of parent ¥40,000 million (up 1.2%), EPS ¥133.94.

• Domestic customer net sales expected to rise 3% YoY; inbound traveler net sales forecast at ¥84.0bn (down from ¥116.0bn last year).

• SG&A expenses for the full year to increase by ¥0.5bn YoY, but improved by ¥4.5bn vs. previous forecast due to cost reductions.

• Dividend forecast for FY2026 is ¥34.00 per share.