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TOKYO — Japanese department store operator Takashimaya said Tuesday that its net profit for the year ended February 28 jumped 51.8 percent on a low base.
The retailer’s net profit totaled 16.54 billion yen, or $202.45 million at average exchange rates for the period.
Operating profit increased 20.7 percent year-on-year to 25.48 billion yen, or $311.83 million.
Sales for the period rose 1.4 percent to 870.33 billion yen, or $10.65 billion. A spokesman for the company said that while Takashimaya’s department stores in Japan accounted for over 85 percent of the company’s sales, they made up only 33 percent of the profit, which came largely from other group companies including international department stores, a credit company and others. He said this disconnect was largely responsible for the relatively significant increase in operating profit compared with sales.
“We had a favorable start from last March due to the stock price rise and reaction to the previous year’s earthquake,” Takashimaya said in a release, adding that it had seen success in the early part of the fiscal year with big-ticket items such as luxury clothing and accessories and artworks. “However from May onwards, the financial crisis in Europe and the appreciation of the yen, accompanied by declining stock prices, led to uncertainty regarding consumer spending.”
Takashimaya also released its guidance for the current fiscal year, ending February 28, 2014. It expects net profit to grow by 1 percent to 16.7 billion yen, or $169.17 million at current exchange rates.
The company predicts a 9.9 percent increase in operating profit, to total 28 billion yen, or $283.65 million.
It is forecasting sales will grow by 3.1 percent to 897 billion yen, or $9.09 billion.