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Isetan Mitsukoshi FY Net Slides 57%

The retailer suffered on a high comparative base but also missed its profit forecast.

TOKYO — Isetan Mitsukoshi Holdings said Friday that its net profit for the year ended March 31 fell 57 percent due to a high comparative base resulting from tax benefits from the previous year.

 

The retailer, which operates the Isetan and Mitsukoshi chains of department stores, posted a full-year net profit of 25.29 billion yen, or $306.03 million at average exchange rates for the period. This represented a year-on-year drop of 57.1 percent, falling short of the group’s own forecast for a 22 percent drop to 30 billion yen, or $363 million.

The company’s operating profit, on the other hand, increased 11.8 percent to 26.64 billion yen, or $322.33 million.

Sales for the year slipped 0.3 percent to 1.24 trillion yen, or $14.96 billion.

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Separately, Isetan Mitsukoshi announced Friday that it will be opening an Isetan Outlet Store at an outlet mall in Japan’s Ibaraki prefecture. This will be the company’s third outlet store, following previous openings last July and this April. The store, which is slated to open on May 17, will sell “highly original” clothing and accessories for women, but will not include any men’s, children’s or home items in its offering.

Isetan Mitsukoshi also released its guidance for the current fiscal year, ending March 31, 2014. It expects net profit to drop 13 percent to 22 billion yen, or $221.88 million at current exchange rates.

The retailer forecasts operating profit will grow by 12.6 percent to 30 billion yen, or $302.56 million. It is predicting sales growth of 3.5 percent, totaling 1.28 trillion yen, or $12.91 billion.