| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥5456.3B | ¥5555.2B | -1.8% |
| Operating Income / Operating Profit | ¥800.2B | ¥763.1B | +4.9% |
| Ordinary Income | ¥865.9B | ¥881.2B | -1.7% |
| Net Income / Net Profit | ¥339.9B | ¥175.6B | +93.5% |
| ROE | 5.5% | 2.9% | - |
For the fiscal year ended March 2026, Revenue was ¥5456.3B (YoY -¥98.9B -1.8%) with Operating Income of ¥800.2B (YoY +¥37.1B +4.9%), Ordinary Income of ¥865.9B (YoY -¥15.3B -1.7%), and Net Income of ¥339.9B (YoY +¥164.3B +93.5%). The top-line decline was primarily due to lower sales in the Department Store Business, but at the operating level SG&A ratio improved to 47.0% (prior 47.1%), lifting the operating margin to 14.7% (prior 13.7%), up 1.0pt. Ordinary Income decreased slightly due to reduced equity-method investment income (¥62.9B, prior ¥122.6B), while Special Gains of ¥117.0B (including ¥106.5B gain on sale of subsidiary shares) contributed materially to Net Income, which nearly doubled year-over-year.
【Revenue】 Revenue totaled ¥5456.3B (YoY -1.8%). By segment, the core Department Store Business was weak at ¥4497.2B (YoY -2.5%), accounting for 82.4% of the total. Real Estate was ¥271.7B (YoY -8.0%) and declined, while Credit & Financial Services grew to ¥355.9B (YoY +3.4%), and Other was ¥981.3B (YoY +2.1%). The department store decline is likely due to changes in consumer behavior and a more competitive environment. Gross margin improved to 61.7% (prior 60.8%), up 0.9pt, likely reflecting better product mix and a higher share of high-margin tenants.
【Profitability】 Operating Income rose to ¥800.2B (YoY +4.9%). SG&A decreased by ¥46.6B to ¥2567.0B (prior ¥2613.6B), bringing the SG&A ratio down to 47.0%. Rent expense improved to ¥303.1B (prior ¥320.1B) and advertising expense declined to ¥87.9B (prior ¥94.4B), while depreciation was largely stable at ¥228.8B (prior ¥226.7B). Ordinary Income slightly decreased to ¥865.9B (YoY -1.7%), mainly due to a large drop in equity-method investment income to ¥62.9B from ¥122.6B. Net special items were +¥92.1B (prior -¥72.5B), including a ¥106.5B gain on sale of subsidiary shares and a significant reduction in impairment losses to ¥11.9B (prior ¥112.3B). Income taxes were ¥197.1B (effective tax rate 20.6%), substantially below prior-year ¥281.0B (34.8%), supporting Net Income of ¥339.9B (YoY +93.5%). In summary, despite revenue decline, cost optimization and special gains drove significant profit growth.
The Department Store Business reported Revenue ¥4497.2B (YoY -2.5%) and Operating Income ¥655.2B (YoY +1.5%), a segment margin of 14.6%. As the core business contributing ~82% of group operating income, it secured profit growth through cost efficiency despite weaker sales. Credit & Financial Services reported Revenue ¥355.9B (YoY +3.4%) and Operating Income ¥63.4B (YoY +10.3%), with a high segment margin of 17.8%. Real Estate Revenue was ¥271.7B (YoY -8.0%) but Operating Income increased significantly to ¥46.8B (YoY +29.5%), improving the segment margin to 17.2%. Other recorded Revenue ¥981.3B (YoY +2.1%) and Operating Income ¥30.2B (YoY +45.4%), margin 3.1% and improving. High-margin Credit & Financial and Real Estate segments underpin overall profitability.
【Profitability】Operating margin 14.7% (prior 13.7%, +1.0pt), Net margin 6.2% (prior 3.2%, +3.0pt) showed marked improvement. Gross margin 61.7% and SG&A ratio 47.0% indicate expense efficiency supporting margin expansion. ROE 5.5% (prior 8.8%) fell despite higher Net Income, due to an increase in Equity (prior ¥5533.8B → current ¥5731.1B). 【Cash Quality】Operating Cash Flow (OCF) ¥906.5B equals 2.67x Net Income ¥339.9B, indicating high quality. OCF/EBITDA ratio 0.87x is slightly below the benchmark (0.9x), with increases in Accounts Receivable (+¥87.1B) and Inventory (+¥14.6B) pressuring working capital. Days Sales Outstanding (DSO) is about 110 days and trending longer, indicating scope to improve working capital management. 【Investment Efficiency】Total Asset Turnover 0.45x (prior 0.46x) slightly declined. Capital expenditure was ¥248.3B, roughly in line with depreciation ¥244.3B, reflecting maintenance-style investment. Free Cash Flow (FCF) ¥1122.9B is ample, covering dividends (estimated ¥215.5B) and share buybacks (¥351.1B). 【Financial Soundness】Equity Ratio 50.9% (prior 50.0%) improved. Interest-bearing debt totaled ¥682.3B (short-term borrowings ¥170.3B, long-term borrowings ¥312.0B, corporate bonds ¥200.0B), reduced from prior ¥793.3B. Debt/EBITDA 0.65x and interest coverage 94x indicate very sound leverage. Current ratio 80.5% and quick ratio 73.9% flag short-term liquidity concerns, but contract liabilities ¥1021.3B and gift certificates ¥261.5B provide a prepaid structure that supports cash circulation.
OCF was ¥906.5B (YoY +1.2%), demonstrating solid cash generation against pretax income of ¥958.0B. In working capital, Accounts Receivable increased ¥98.98B, Inventory increased ¥15.08B, and Accounts Payable increased ¥58.04B, with net working capital flows exerting cash outflow pressure. Income tax payments were ¥144.2B (prior ¥109.7B). Investing Cash Flow was +¥216.3B, driven mainly by proceeds from sale of subsidiary shares ¥506.2B. Capital expenditure totaled ¥248.3B and investment in intangible assets was ¥58.6B. Financing Cash Flow was -¥769.2B, reflecting repayment of long-term borrowings ¥333.0B, share buybacks ¥351.1B, dividend payments ¥214.8B (¥21.5B of which are effectively considered dividends), and a reduction of short-term borrowings by ¥250B. FCF of ¥1122.9B comfortably covered total shareholder returns of ¥432.3B (dividends + buybacks), and Cash & Deposits increased 92% to ¥743.99B. While cash generation is strong, prolonged AR DSO is reducing cash conversion efficiency and working capital improvement is a priority next fiscal year.
Operating Income ¥800.2B reflects core earning power, with improved gross margin and SG&A efficiency enhancing quality. Ordinary Income ¥865.9B includes equity-method income ¥62.9B, about half prior-year ¥122.6B, slightly reducing quality at the ordinary level. Net Income ¥339.9B was materially supported by Special Gains ¥117.0B (including ¥106.5B gain on sale of subsidiary shares), indicating prominent one-off effects. Prior year special losses of ¥122.4B (impairment ¥112.3B, etc.) had suppressed Net Income, while current year special losses contracted to ¥24.9B, aiding Net Income recovery. OCF/Net Income ratio 2.67x is high and accrual quality is good; however, excluding special gains, sustainable Net Income should be evaluated based on operating and ordinary earnings. Comprehensive Income was ¥737.6B, affected by an increase in unrealized gains on securities of ¥76.2B and a decline in OCI attributable to equity-method affiliates of -¥112.3B; the gap between comprehensive income and net income stems from valuation changes in investment assets.
The full-year forecast for FY2027 (year ending March 2027) is Revenue ¥5600.0B (YoY +2.6%), Operating Income ¥815.0B (YoY +1.8%), Ordinary Income ¥800.0B (YoY -7.6%). Net Income is not disclosed, but EPS is projected at ¥184.27 (current ¥213.96, -13.9%), implying lower profit. Revenue is expected to recover moderately, but operating profit growth is modest, and Ordinary Income is conservatively planned to fall due to the prior-year special gains normalization and expected equity-method income normalization. Year-to-date progress rates are Revenue 97.4%, Operating Income 98.2% (near plan), while Ordinary Income is 108.2% (exceeding forecast). Dividend forecast is ¥40 per share; this implies a reduction from the current total dividend of ¥70 (interim ¥30 + year-end ¥40) and is interpreted as normalization of the payout.
Current fiscal year dividends were interim ¥30 and year-end ¥40, totaling ¥70, with a Payout Ratio of 37.9%. Prior year dividend was ¥24 (Payout Ratio 37.9%), representing a substantial increase this year. Share buybacks totaled ¥351.1B, resulting in a Total Return Ratio of 129.2% (dividends estimated ¥81.2B + buybacks ¥351.1B / Net Income ¥339.9B), a high level. Against FCF ¥1122.9B, total shareholder returns ¥432.3B (dividends + buybacks) equate to an FCF coverage of 2.6x, indicating strong capacity. Next fiscal year dividend forecast ¥40 implies a reduction, suggesting a return to a sustainable level after a one-time increase reflecting this year's profit. Cash & Deposits ¥744.0B and OCF ¥906.5B provide ample liquidity, making continued dividends and buybacks feasible.
Short-term liquidity risk: Current ratio 80.5% and quick ratio 73.9% indicate short-term liquidity at a cautionary level. Current liabilities ¥3711.4B versus current assets ¥2987.9B leave a gap of ¥723.5B. Contract liabilities ¥1021.3B and gift certificates ¥261.5B support cash circulation, but prolonged Accounts Receivable DSO of 110 days makes working capital management urgent. Short-term borrowings have been reduced to ¥170.3B, but refinancing/tight liquidity risk remains.
Revenue concentration in Department Stores: The Department Store Business accounts for 82.4% of Revenue and is sensitive to economic/consumer trends, inbound demand swings, and intensified e-commerce competition. Department store sales were soft at -2.5%, and changes in in-store traffic or demand for high-ticket items can materially affect earnings. Growth recovery in the core business is critical, although Credit & Financial (+3.4%) and Real Estate (maintained high margins) provide some diversification.
Dependence on one-off gains and Ordinary Income quality: Of Net Income ¥339.9B, Special Gains ¥117.0B (gain on sale of subsidiary shares ¥106.5B) was a major contributor; sustainable earnings should be assessed at the operating and ordinary levels. Ordinary Income ¥865.9B decreased slightly (YoY -1.7%) due to lower equity-method income, and the plan for next year assumes Ordinary Income -7.6%. While the operating base is solid, fluctuations in non-operating items pose challenges to stability of ordinary and net profits.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 14.7% | 4.6% (1.7%–8.2%) | +10.1pt |
| Net Margin | 6.2% | 3.3% (0.9%–5.8%) | +2.9pt |
The company's operating margin exceeds the industry median by +10.1pt, positioning it among the top profitability performers in retail.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | -1.8% | 4.3% (2.2%–13.0%) | -6.1pt |
Revenue growth lags the industry median by -6.1pt, indicating a phase of underperformance relative to peers.
※Source: Company compilation
Despite revenue decline, Operating Margin improved to 14.7%, demonstrating resilient core earnings. SG&A efficiencies and contributions from high-margin segments (Credit & Financial, Real Estate) sustain top-tier margins in the industry. Next fiscal year plans assume revenue growth, supporting the potential sustainability of operating profit increases.
Net Income rose +93.5% largely due to Special Gains (gain on sale of subsidiary shares ¥106.5B). Next year anticipates normalization with Ordinary Income -7.6% and EPS -13.9% in a conservative plan. Sustainable profit should be assessed at operating and ordinary levels, with the stability of the operating base being key.
Strong FCF generation (¥1122.9B) sufficiently supports dividends and buybacks. Short-term liquidity ratios (current ratio 80.5%) are cautionary, but interest-bearing debt is very low (Debt/EBITDA 0.65x), indicating high financial soundness. Improving AR DSO of 110 days and optimizing working capital are crucial to improve cash conversion next fiscal year.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company from public financial disclosures. Investment decisions are your responsibility; please consult a professional advisor as necessary.