J. Front Retailing Co., Ltd. Revises Consolidated Earnings Guidance for the First Six Months Ended August 31, 2024 and Fiscal Year Ending February 28, 2025
September 24, 2024 at 02:00 am EDT
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J. Front Retailing Co., Ltd. revised consolidated earnings guidance for the first six months ended August 31, 2024 and fiscal year ending February 28, 2025. For the first six months, the company expects sales revenue to be JPY 209,300 million against previous guidance of JPY 207,000 million. Operating profit to be JPY 39,300 million against previous guidance of JPY 27,000 million. Profit attributable to owners of parent to be JPY 29,000 million against previous guidance of JPY 18,000 million. Basic earnings per share to be JPY 111.50 against previous guidance of JPY 69.65.
For the full year, the company expects sales revenue to be JPY 437,000 million against previous guidance of JPY 424,500 million. Operating profit to be JPY 52,000 million against previous guidance of JPY 41,500 million. Profit attributable to owners of parent to be JPY 36,500 million against previous guidance of JPY 26,500 million. Basic earnings per share to be JPY 140.33 against previous guidance of JPY 103.42. Reasons for the revision: In the second quarter of the current fiscal year, consolidated earnings were driven by strong domestic sales mainly in the core department store and shopping center businesses, while duty- free sales grew based on an increase in foreign tourists visiting Japan and other factors. As a result, sales revenue for the six months ended August 31, 2024 increased by 1.1% and business profit increased by 9.8% compared to the previous forecasts (announced on June 28, 2024). In addition, due to the acquisition of shares of Shinsaibashi Kyodo Center Building, K.K. (SCB) to make SCB a consolidated subsidiary, a gain of approximately JPY 8,500 million on the step acquisition is recorded in other operating income. As a result of the gain and the increase in business profit, operating profit increased by 45.6% compared to the previous forecasts. Regarding the consolidated earnings forecasts for the full fiscal year, the company revised upward the outlook for sales revenue and profits at each level from the previous forecasts, incorporating the sales forecast for the second half of the fiscal year, forward-looking investments, additional structural reform expenses as a risk buffer, and other factors in addition to the first six months results mentioned above.
J.Front Retailing Co., Ltd. is a holding company organized around 4 areas of activity:
- operation of department stores (57.4% of net sales): distribution of clothes, food products, household items, etc.;
- operation of commercial centers (15.6%);
- real estate development and management (12.3%);
- issuance and management of credit cards (2.2%);
- other (12.5%): wholesale distribution of electronic products, food products, construction materials, textile products, etc., design and manufacturing of furniture, direct marketing services, real estate leasing, etc.
J. Front Retailing Co., Ltd. Revises Consolidated Earnings Guidance for the First Six Months Ended August 31, 2024 and Fiscal Year Ending February 28, 2025