TOKYO — Takashimaya said Tuesday that its nine-month net profit dropped 18.6 percent, citing sluggish consumption and an unfavorable exchange rate caused by a strong yen early in the period.
The department store retailer’s consolidated profit for the nine months ended Nov. 30 totaled 13.23 billion yen, or $124.71 million at average exchange rates for the period.
Operating profit slipped 3.4 percent to 20.55 billion yen, or $193.8 million.
Nine-month revenue fell 1.6 percent, coming in at 658.79 billion yen, or $6.21 billion.
Takashimaya said that it made efforts to attract new customers — including customers from outside of Japan — by partnering with NTT Docomo, Japan’s largest telecommunications company. The two companies launched a new point service and worked together to send coupons to customers’ mobile phones. In this way, Takashimaya attracted more customers from overseas and increased inbound sales by 8 percent.
“However, domestic department stores on the whole experienced a decline in profits and revenue, reflecting the harsh business environment,” the company said.
Outside of Japan, Takashimaya saw a decline in sales and profits in Singapore, as well as lower revenues in Shanghai, which it attributed to a strong yen. The retailer opened a new department store in Ho Chi Minh City in July, and it said sales there have been strong, particularly of food, cosmetics and children’s merchandise.
Takashimaya left unchanged its guidance for the 12 months ending Feb. 28, 2017. It expects its net profit to fall 16.1 percent on the year to 20 billion yen, or $170.38 million at current exchange rates.
It predicts operating profit will grow 3.1 percent year on year to 34 billion yen, or $289.65 million.
The company is forecasting a decline in revenues of 0.5 percent, for a total of 925 billion yen, or $7.88 billion.