Isetan Mitsukoshi Holdings (3099) investor relations material

Executive summary

• Achieved record first-quarter operating profit and profit, driven by increased per customer spending, strong cost control, and robust domestic and inbound demand, with both domestic and overseas gross sales exceeding projections.

• Strengthened relationships with identified customers and expanded digital engagement, resulting in higher sales per customer and successful business model transition initiatives.

• Overseas customer diversity and app-driven engagement contributed to robust sales recovery.

Financial highlights

• Net sales for Q1 FY2026 rose 3.8% year-on-year to ¥128,912 million, with operating profit up 20.6% to ¥18,877 million and profit attributable to owners of parent up 18.5% to ¥22,316 million.

• Gross profit increased to ¥81,402 million from ¥76,952 million year-on-year.

• Ordinary profit rose 16.7% year-on-year to ¥19,927 million.

• Comprehensive income nearly doubled to ¥9,903 million, up 98.6% year-on-year.

• SG&A expenses increased by 2.0% year-over-year, but remained below the gross sales growth rate.

Outlook and guidance

• Full-year gross sales forecast revised upward to 1,360 billion yen (+10 billion yen from initial plan), with operating profit forecast at 84 billion yen (+2.5 billion yen).

• Full-year FY2027 net sales forecast revised up to ¥562,000 million (+3.0% year-on-year), with operating profit expected at ¥84,000 million (+5.0%).

• Profit attributable to owners of parent forecast at ¥63,000 million (-17.2% year-on-year), with basic EPS at ¥92.48, reflecting the impact of a stock split and share repurchase.

• Domestic department store gross sales projected to grow 4.6% year-over-year, with overseas customer sales expected to rise 8.0%.

• SG&A expenses for the full year planned at 262 billion yen, a reduction of 1 billion yen from the initial plan.