~ Speed Up the Change. ~
Presentation of Results for Interim Period of
Fiscal Year Ending February 28, 2025
October 8, 2024
J. Front Retailing Co., Ltd.
Create and Bring to Life "New Happiness."
Today's Agenda
I. H1 FY2024 Results and Full FY2024 Forecast
II. Progress of FY2024-2026Medium-term Business Plan
1
H1 FY2024 Results and Full FY2024 Forecast
WAKABAYASHI Hayato
Director and Managing Executive Officer
Senior Executive General Manager, Financial Strategy Unit
J. Front Retailing Co., Ltd.
Create and Bring to Life "New Happiness."
2
Consolidated Performance PL (IFRS)
Spending by the wealthy and inbound tourists continued to drive business performance. Business profit increased by approx. 60% in H1.
With the addition of gain on step acquisition of shares (approx. ¥8.5 billion), profits exceeded June forecast and reached a record high.
Interim dividend is ¥22 as announced in September, an increase of ¥6 per share from the same period last year.
(Millions of yen, unless otherwise stated)
Interim period of | Q1 | Q2 | H1 | ||||||
fiscal year ending | Results | % YoY | Results | % YoY | Results | % YoY | vs. June | ||
February 28, 2025 | forecast | ||||||||
Gross sales | 299,707 | 13.6) | 310,761 | 12.5) | 610,469 | 13.0) | 14,469 | ||
Revenue | 101,469 | 8.6) | 107,898 | 9.9) | 209,368 | 9.3) | 2,368 | ||
Gross profit | 53,294 | 16.3) | 55,152 | 16.0) | 108,446 | 16.1) | 3,246 | ||
SGA | 36,891 | 2.5) | 39,079 | 5.1) | 75,970 | 3.8) | 270 | ||
Business profit | 16,403 | 66.8) | 16,072 | 55.1) | 32,476 | 60.8) | 2,976 | ||
Other operating income | 277 | (73.8) | 8,628 | 1,042.8) | 8,906 | 390.1) | ― | ||
545 | (24.7) | 1,473 | (8.2) | 2,018 | (13.4) | ― | |||
Other operating expenses | |||||||||
Operating profit | 16,136 | 58.7) | 23,228 | 144.1) | 39,364 | 100.0) | 12,364 | ||
Profit attributable to | 11,316 | 76.9) | 17,777 | 173.4) | 29,094 | 125.5) | 11,094 | ||
owners of parent | |||||||||
Dividend per share (Yen) | - | - | - | - | 22 | (Yen) 6) | 2 | ||
3
Segment Performance (IFRS)
(Millions of yen, unless otherwise stated) | ||||||||
Interim period of fiscal year | Q1 | Q2 | H1 | |||||
ending February 28, 2025 | Results | % YoY | Results | % YoY | Results | % YoY | ||
Gross sales | 197,240 | 16.2) | 201,529 | 12.2) | 398,770 | 14.2) | ||
Department | Revenue | 62,606 | 15.6) | 64,687 | 11.1) | 127,293 | 13.3) | |
Store | Business profit | 10,623 | 118.6) | 9,531 | 39.8) | 20,154 | 72.6) | |
Operating profit | 10,386 | 130.6) | 9,062 | 61.8) | 19,449 | 92.4) | ||
Gross sales | 80,003 | 14.9) | 82,854 | 15.6) | 162,857 | 15.3) | ||
SC | Revenue | 15,868 | 11.0) | 15,943 | 13.2) | 31,811 | 12.1) | |
Business profit | 4,002 | 61.7) | 3,834 | 60.4) | 7,836 | 61.0) | ||
Operating profit | 3,950 | 25.7) | 3,167 | 20.1) | 7,118 | 23.1) | ||
Gross sales | 16,726 | 1.3) | 20,286 | 21.3) | 37,013 | 11.4) | ||
Developer | Revenue | 16,726 | 1.3) | 20,286 | 21.3) | 37,013 | 11.4) | |
Business profit | 1,638 | 17.2) | 2,571 | 332.3) | 4,210 | 111.3) | ||
Operating profit | 1,632 | 0.3) | 2,543 | 321.0) | 4,176 | 87.1) | ||
Gross sales | 3,188 | (1.5) | 3,301 | (5.6) | 6,489 | (3.6) | ||
Payment and | Revenue | 3,188 | (1.5) | 3,301 | (5.6) | 6,489 | (3.6) | |
Finance | Business profit | 386 | (47.2) | 675 | (18.9) | 1,062 | (32.1) | |
Operating profit | 344 | (49.8) | 556 | (31.9) | 900 | (40.1) | ||
Gross sales | 11,863 | (13.6) | 13,411 | (5.6) | 25,275 | (9.5) | ||
Other | Revenue | 11,574 | (13.8) | 13,111 | (5.5) | 24,686 | (9.6) | |
Business profit | 258 | (45.8) | 193 | (5.2) | 451 | (33.6) | ||
Operating profit | 271 | (61.4) | 150 | (52.2) | 422 | (58.5) | 4 | |
H1 Segment Information (IFRS) Main Reasons for Changes
Department Store Business
- Backed by increasing spending by the wealthy and inbound tourists, investment proved successful, and sales of luxury goods further increased.
- Gaisho sales exceeded the plan, mainly due to more brisk spending by young affluent consumers. Inbound sales expanded mainly in 7 key areas.
SC Business
- Shibuya PARCO and Shinsaibashi PARCO saw significant revenue increase due to growing popularity among foreign tourists to Japan.
- Thanks to the renovations of key stores such as Nagoya PARCO, both customer traffic and transaction volume increased, leading to increased rental income.
Developer Business
- J. Front City Development recorded a gain on sale of assets held (approx. ¥1.7 billion) in Q2.
- J. Front Design & Construction increased profits mainly due to an increase in orders for hotel interior construction and department store renovation work.
Payment and Finance Business
- While merchant fees increased due to higher transaction volume, revenue decreased due to higher point costs and other factors.
- Profits decreased due to an Increase in upfront costs for strengthening organization and recruitment to consolidate the Group cards.
Other
- Daimaru Kogyo's profits fell due to struggles in the automotive department and other areas.
5
Daimaru Matsuzakaya Department Stores Major Store Sales
Maintained double-digit growth in total sales of directly managed stores.
Double-digit growth even compared to pre-COVID-19 levels.
In H1, sales at Kyoto and Nagoya stores grew by double digits compared to pre-COVID-19 levels. Nagoya store continued to perform well despite the impact of sales floor closures for major renovations this fall.
(% change) | |||||||
Interim period of | YoY | vs. FY2019 | vs. FY2018 | ||||
fiscal year ending | Q1 | Q2 | H1 | Q1 | Q2 | H1 | H1 |
February 28, 2025 | |||||||
results | results | results | results | results | results | results | |
Shinsaibashi | 44.7 | 19.4 | 30.9 | 27.2) | 29.6) | 28.4) | 38.2) |
Umeda | 8.1 | 9.4 | 8.8 | (11.4) | (6.9) | (9.1) | (9.1) |
Tokyo | 10.3 | 9.4 | 9.8 | 4.9) | 2.6) | 3.7) | 5.4) |
Kyoto | 27.5 | 15.7 | 21.4 | 23.6) | 16.5) | 20.0) | 20.0) |
Kobe | 10.5 | 8.4 | 9.4 | 26.5) | 32.8) | 29.6) | 25.5) |
Sapporo | 17.8 | 23.7 | 20.8 | 22.0) | 32.1) | 27.1) | 27.6) |
Nagoya | 7.5 | 6.4 | 6.9 | 11.3) | 14.4) | 12.9) | 12.0) |
Total | |||||||
15.9 | 11.7 | 13.7 | 11.5) | 13.9) | 12.7) | 12.9) | |
directly managed stores | |||||||
*Total is on a comparable store basis. (Comparisons to FY2019 and FY2018 exclude Yamashina, Shimonoseki, and Toyota stores.)
6
Daimaru Matsuzakaya Department Stores Inbound Sales Trends
With the weak yen and a recovery in Chinese tourists, sales reached a record high of over ¥60.0 billion.
The pace of revenue growth slowed down in August due to the impact of the rapid appreciation of the yen and other factors. Strategies such as expanding contact points with overseas customers will be accelerated and promoted in H2 and beyond.
Duty-free sales trends (directly managed stores)
(Millions of yen) | FY2019 | FY2023 | FY2024 | |||
15,000
10,000
5,000
Duty-free sales share (by country)
China Taiwan Hong Kong Korea Other
(%)
FY2024 | 64.2 | 8.0 6.6 5.9 | 15.3 |
FY2023 | 47.3 | 16.2 | 8.9 | 6.4 | 21.2 |
0
Mar | Apr | May | Jun | Jul | Aug | 7 |
Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)
H1 FY2024 | (Millions of yen) | |||||||||||||
SGA analysis | ||||||||||||||
Increase in | ||||||||||||||
Increase in | Decrease in | personnel | ||||||||||||
Increase in | Decrease in ad | expenses | ||||||||||||
operation Decrease in | ||||||||||||||
other SGA | ||||||||||||||
expenses | ||||||||||||||
other SGA | 178 | |||||||||||||
264 | costs | depreciation | ||||||||||||
(34) | (105) | |||||||||||||
Decrease in | ||||||||||||||
Increase in | (323) | (27) Decrease in | ||||||||||||
Decrease in | operation | |||||||||||||
personnel | Decrease in | costs | 1,534 | packing and | ||||||||||
expenses | ad expenses | |||||||||||||
74 | depreciation | transportation | ||||||||||||
777 | (145) Increase in | (149) | costs | |||||||||||
(255) | ||||||||||||||
packing and | ・Reclassification | |||||||||||||
transportation | ||||||||||||||
costs
- Event planning expenses (down ¥200 mn)
・Salaries and bonuses (¥500 mn)
・Commissions (¥1,000 mn) ・Repair expenses (¥200 mn) and others
57,15357,200
55,318
Up ¥1,835 million YoY | ¥47 million below June forecast | |
H1 LY | H1 FY2024 | June |
results | results | forecast |
8 |
PARCO Major Store Tenant Transaction Volume Percentage Change
Shibuya and Shinsaibashi PARCO saw a significant YoY increase in revenue mainly due to growing popularity among foreign tourists to Japan.
Total comparable store transaction volume also continued to be strong, with double-digit
increases continuing from last year. | (% change) | |||||||
Interim period of | YoY | vs. FY2019 | vs. FY2018 | |||||
fiscal year ending | Q1 | Q2 | H1 | Q1 | Q2 | H1 | H1 | |
February 28, 2025 | ||||||||
results | results | results | results | results | results | results | ||
Sapporo PARCO | 25.7 | 22.0 | 23.7 | 8.2) | 32.2 | 19.6) | 17.0 | |
Urawa PARCO | 14.4 | 11.0 | 12.7 | 13.0) | 16.5 | 14.7) | 21.4 | |
Ikebukuro PARCO | 19.4 | 16.3 | 17.8 | 0.8) | 13.7 | 7.1) | 4.9 | |
Shibuya PARCO | 41.7 | 35.9 | 38.7 | 2,878.0) | 3,110.9 | 2,991.5) | 3,050.0 | |
Chofu PARCO | 3.1 | 4.2 | 3.6 | (0.5) | 8.6 | 3.8) | 7.6 | |
Nagoya PARCO | 20.3 | 17.0 | 18.6 | (4.1) | 3.4 | (0.5) | 0.6 | |
Shinsaibashi PARCO | 47.6 | 54.0 | 50.9 | ― | ― | ― | ― | |
Fukuoka PARCO | 12.2 | 15.5 | 13.9 | 11.5) | 23.2 | 17.2) | 20.3 | |
Total all stores | 14.8 | 15.1 | 14.9 | 17.9) | 31.5 | 24.5) | 29.9 | |
Total | ||||||||
17.9 | 18.0 | 18.0 | 0.4) | 9.5 | 4.8) | 5.4 | ||
comparable stores | ||||||||
* Kinshicho PARCO opened on March 16, 2019, Shibuya PARCO on November 22, 2019, and Shinsaibashi PARCO on November 20, 2020. |
*Utsunomiya PARCO closed on May 31, 2019, Kumamoto PARCO on February 29, 2020, Tsudanuma PARCO on February 28, 2023, and Shintokorozawa | 9 |
PARCO on February 29, 2024. |
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Disclaimer
J.FRONT Retailing Co. Ltd. published this content on November 01, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 01, 2024 at 09:15:33.657.