TOKYO — Japanese department store operator Takashimaya saw higher profits in the first half of the year.
The company said Tuesday its net profit for the six months ended August 31 rose 22.8 percent to 6.60 billion yen, or $82.48 million at average exchange rates for the period. This is up from 5.38 billion yen, or $66.88 million, for the same six months last year. Takashimaya benefited from a low comparative base caused by write-offs related to the closure and sale of its New York store two years ago.
Operating profit rose by 8.8 percent to 11.74 billion yen, or $146.63 million.
The retailer posted revenue of 419.83 billion yen, or $5.24 billion, over the half. This represents a year-on-year increase of 2.4 percent.
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In a release, Takashimaya reiterated what it said when it released its first-quarter earnings, stating that it has combated economic uncertainty and low corporate earnings by focusing on restructuring and strengthening its sales power.
“Furthermore, by leveraging the strengths of group companies with high earnings, we have been able to concentrate the group’s synthesis and improve our achievements,” the release said.
Takashimaya also revised its guidance for the full year ending February 28, 2013, increasing its forecasts for net profit and operating profit while lowering its revenue expectations. It now expects net profit to grow by 23.9 percent to 13.5 billion yen, or $172.17 million at current exchange rates. This is up from a previous forecast that net profit would increase by 19.3 percent to 13 billion yen, or $165.79 million.
The company is predicting operating profit will increase 18.5 percent to 25 billion yen, or $318.83 million. It previously forecast operating profit would grow 13.7 percent to 24 billion yen, or $306.08 million.
The company forecasts full-year revenue will grow 1.9 percent to 874.5 billion yen, or $11.15 billion, down from a previous forecast of 2.5 percent growth to 880 billion yen, or $11.22 billion.