TOKYO — Isetan Mitsukoshi Holdings said Wednesday that its full-year net profit fell 11.3 percent on higher expenses as it remodeled some of its stores.
Japan’s largest department store operator’s net profit for the 12 months ended March 31 dropped 11.3 percent to 26.51 billion yen, or $220.79 million at average exchange rates for the period.
The company’s operating profit inched up just 0.1 percent year-on-year to 33.11 billion yen, or $275.78 million.
Isetan Mitsukoshi said its sales grew 1.2 percent, for a total of 1.29 trillion yen, or $10.72 billion.
Like many other retailers in Japan, Isetan Mitsukoshi has been making efforts to stand out from the competition and try new businesses. These include some smaller-format stores, such as a chain of multibrand cosmetics stores and a store at Tokyo’s Haneda International Airport. Earlier this year, it also opened Japan Duty Free Ginza, an airport-style duty-free store located on the eighth floor of its Mitsukoshi department store in Tokyo’s upscale Ginza neighborhood.
The retailer has also been working to attract international tourists, nearly 20 million of whom visited Japan in 2015. Last year it adopted “This is Japan” as its corporate message. This is manifested in the specially selected, high-quality Japanese products and services offered at its stores.
Isetan Mitsukoshi also released its guidance for the current fiscal year, ending Mar. 31, 2017. It expects net profit to slip by 1.9 percent to 26 billion yen, or $238.72 million at current exchange rates.
The company is predicting operating profit will grow 11.8 percent on the year, for a total of 37 billion yen, or $339.72 million.
It forecasts net sales growth of 5.7 percent to 1.36 trillion yen, or $12.49 billion.