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Takashimaya Q1 Net Grows 4%

The Japanese retailer cited an overall rebound of the Japanese economy and greater synergies between its divisions.

TOKYO — Takashimaya said Friday it saw higher first-quarter profits and sales, which it attributed to the weakening of the yen and an overall rebound of the Japanese economy, as well as strengthening of its own sales force and improvement in the synergy of group companies.

 

The Japanese department store operator said net profit for the three months ended May 31 rose 4 percent to 4.02 billion yen, or $41.12 million at average exchange rates for the period.

 

Operating profit grew by 3.6 percent to 6.09 billion yen, or $62.40 million.

 

Takashimaya posted sales of 214.01 billion yen, or $2.19 billion, up 3.2 percent over the same period last year.

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The company said that it has strengthened the business foundations of its larger stores, while making efforts to attract more customers and distinguish itself from other retailers. As a part of this larger plan, it has remodeled the women’s clothing and accessories departments at its Yokohama store, which led to an increase in sales, the retailer said.

 

As it has noted in recent monthly sales reports, the retailer is also seeing success with high-priced items such as specialty and designer clothing and fine jewelry. It said that sales of these types of products have increased even further as spending was given a boost by a rise in stock prices.

 

Takashimaya left unchanged its guidance for the current fiscal year. It expects net profit for the twelve months ending February 28 to edge up 1 percent to 16.7 billion yen, or $170.29 million at current exchange rates.

 

The company is forecasting yearly operating profit will increase by 9.9 percent to 28 billion yen, or $285.52 million. It expects net sales to total 897 billion yen, or $9.15 billion, an increase of 3.1 percent over the previous year.