TOKYO — Takashimaya said Friday that a one-off gain propelled a double-digit jump in first-quarter net profit as sales for the period slid.
The department store operator said net profit for the three months ended May 31 jumped 38.9 percent to 6.32 billion yen, or $52.45 million at average exchange rates for the period. The company sold off a portion of its shares in H2O Retailing, the operator of the Hankyu and Hanshin department store, during the quarter. Two transactions in March resulted in the sale of a 3.26 percent total stake in H2O, or 5.2 billion yen, or $43.15 million.
Operating profit for the three months fell 1.1 percent to 7.45 billion yen, or $61.84 million.
First-quarter revenue was down 2.2 percent on the year to 219.39 billion yen, or $1.82 billion. The company’s sales during the same period a year ago had increased due to last-minute rush buying ahead of a consumption tax increase in April 2014.
“In regards to the domestic department store business, while sales did not reach the levels of those of last year, when there was a rush demand ahead of the consumption tax hike, tax-exempt sales were more than three times those of last year, thanks to an increase in inbound tourists from overseas,” the company said.
According to preliminary figures released by the Japan National Tourism Organization, the number of foreign visitors to Japan in March increased 45.3 percent year-on-year. There was a 43.3 percent increase in April, and a 49.6 percent jump in May.
Takashimaya left unchanged its guidance for the current fiscal year, ending February 29, 2016. The company said it expects net profit to grow 3.2 percent to 23.3 billion yen, or $187.63 million at current exchange rates.
The company said full-year operating profit should grow 6.2 percent to 34 billion yen, or $273.79 million.
It predicts growth of 1.4 percent in revenue, for a total of 925 billion yen, or $7.45 billion.