TOKYO — Isetan Mitsukoshi Holdings said Friday its first-quarter net profit grew 11.4 percent on increased sales, lower expenses and a strategic shift to new retail formats, including smaller specialty stores.
The company’s net profit for the three months ended June 30 totaled 6.76 billion yen, or $68.48 million at average exchange rates for the period.
Operating profit rose 53.2 percent to 10.58 billion yen, or $107.15 million. Isetan Mitsukoshi attributed this high growth the reduced expenses and restructuring within the company.
Sales at Japan’s largest department store operator increased 4.4 percent to 303.19 billion yen, or $3.07 billion.
The retailer raised its full-year earnings and sales guidance but also expressed caution about future trading conditions. The company’s fiscal year ends March 31.
“Although we have seen a bullish trend among the department store business, driven by [strong sales of] big-ticket items, because of factors such as increases in the consumption tax beginning with next year, we haven’t been able to wipe out uncertainty about the future,” the company said.
Isetan Mitsukoshi now expects net profit to drop 7.1 percent on the year, totaling 23.5 billion yen, or $238.2 million. This is up from a previous forecast of 22 billion yen, or $223 million.
The company raised its full-year operating profit forecast to 32.5 billion yen, or $329.43 million, representing a yearly increase of 22 percent. It is forecasting a sales increase of 4.3 percent to 1.29 trillion yen, or $13.08 billion.