Takashimaya Company (8233) Q3 2025 earnings summary

Executive summary

• Operating revenue for the nine months ended November 30, 2024, rose 8.2% year-over-year to ¥361,729 million, with operating profit up 25.0% to ¥41,523 million and profit attributable to owners of parent up 7.5% to ¥26,075 million.

• Achieved record high operating and ordinary profit for two consecutive years, and record high profit attributable to owners of parent for three consecutive years on a consolidated basis.

• Growth was driven by strong domestic department store sales, robust inbound demand, and expansion in commercial property and finance segments.

• Cost reduction measures and increased orders in Construction & Design and Vietnam's Overseas Commercial Property Development contributed to higher profits.

• Segment reporting was revised to better reflect business portfolio optimization and ROIC management.

Financial highlights

• Operating revenue: ¥361,729 million (+8.2% YoY); operating profit: ¥41,523 million (+25.0% YoY); ordinary profit: ¥41,850 million (+16.8% YoY).

• Net income attributable to owners of parent: ¥26,075 million (+7.5% YoY); EPS: ¥82.75 (¥70.32 diluted, post-stock split).

• Gross profit increased to ¥142,440 million from ¥131,206 million YoY.

• SG&A expenses rose to ¥177.8bn (+¥8.0bn YoY), but SG&A to revenue ratio improved to 23.6% (-1.3pt YoY).

• Total assets: ¥1,306,548 million; net assets: ¥494,861 million; equity ratio: 35.9%.

Outlook and guidance

• Full-year forecast (ending Feb 28, 2025): operating revenue ¥495,000 million (+6.2% YoY), operating profit ¥55,000 million (+19.7% YoY), net income attributable to owners of parent ¥38,000 million (+20.2% YoY), EPS ¥121.28 (post-stock split).

• Full-year forecast unchanged from October: total operating revenue ¥1,035.0bn (+8.7% YoY), operating profit ¥55.0bn (+9.1% YoY), profit attributable to owners of parent ¥38.0bn (+6.4% YoY).

• ROIC forecast at 6.2% (FY2023: 5.5%), ROE at 8.3% (FY2023: 7.3%).

• Inbound sales target for Department Stores in Japan remains at ¥115.0bn.

• No change to previously announced earnings or dividend forecasts.