TOKYO — Takashimaya said Friday that its net profit for its fiscal first quarter fell by more than 40 percent, despite flat sales and slight growth in operating profit. The drop was due to a high comparative base resulting from a one-time gain in the same period a year earlier.
The department store operator’s net profit for the three months ended May 31 was down 43.6 percent to 3.56 billion yen, or $32.25 million at average exchange rates for the period.
Operating profit grew 3.2 percent in the first quarter, coming in at 7.69 billion yen, or $69.61 million.
The retailer recorded net sales of 219.32 billion yen, or $1.98 billion. This was down just slightly from the previous year’s first-quarter sales, which totaled 219.39 billion yen, which at the time translated to $1.82 billion.
Takashimaya said it made strong sales to international tourists visiting Japan, a trend that has been benefiting many of Japan’s retailers over the past year or so. However, the recent appreciation of the yen could derail that trend going forward.
“The department stores segment reported an impressive double-digit growth in tax-free sales, primarily in cosmetics, compared with the previous fiscal year,” Takashimaya said.
Takashimaya left unchanged its guidance for the 12 months ending Feb. 28, 2017. It expects its net profit to grow 0.7 percent to 24 billion yen, or $213.36 million at current exchange rates.
The retailer’s operating profit forecast shows growth of 3.1 percent to 34 billion yen, or $302.27 million.
It predicts its yearly net sales will grow 2.5 percent to 953 billion yen, or $8.47 billion.