Takashimaya revises forecasts, boosts shareholder returns

Takashimaya Company, Limited has revised its FY2025 financial plan, adjusting the year-on-year growth rate for Japanese customers in the second half from +6% to +4%, while maintaining net sales to inbound travelers at 40 billion yen. This revision reflects weaker fashion trends for non-VIP customers in Q1, offset by recovery signs in Q2 and solid high-ticket item spending. The company anticipates steady net sales growth from the previous year, supported by product appeal measures and continued strong inbound sales.

Operating profit for FY2025 was upwardly revised by 2.0 billion yen from the initial plan, despite a 2.5 billion yen downward revision in operating gross profit. This gross profit adjustment is primarily due to the impact of net operating revenue. For FY2026, the final year of the current Medium-term Management Plan, the company projects a 1.6 billion yen increase in operating profit for Department Stores in Japan, driven by increased net sales from high-profit fashion products and cost reductions through digital technologies and improved logistics.

Takashimaya also announced a strategic shift in its capital policy, moving towards increased shareholder returns by utilizing debt, aiming for a total payout ratio of 70% in the next Medium-term Management Plan. This decision stems from a re-evaluation of the "impact expected" from new lease accounting systems starting FY2028, and positive results from growth investments in finance and overseas businesses. The company plans to secure funds through operating cash flow, non-core asset utilization, and diverse financing methods to balance financial soundness and shareholder returns.