Takashimaya revises earnings forecast amid shifting consumer trends

Takashimaya has revised its earnings forecast for the fiscal year ending February 2026, citing a slowdown in high-end purchases by inbound tourists and domestic consumers impacted by inflationary pressures. While inbound sales surged in the prior year due to a weak JPY, the company now anticipates a more moderate pace. The company has lowered its sales forecast for the first quarter but maintains a positive outlook for sales excluding store closures and accounting changes, emphasizing steady performance. Takashimaya plans to enhance customer loyalty programs and strengthen key partnerships to boost sales. Regarding capital allocation, the company plans to monetize non-core assets and return the proceeds to shareholders through share repurchases. Takashimaya's full-year sales in fiscal year 2025 were JPY90 billion lower than expected, with domestic department stores only seeing a JPY5 billion decrease. Domestic department stores saw increased costs from higher utility bills. The next earnings guidance update is expected during the second-quarter report.