TOKYO — Takashimaya said Friday its full-year net profit fell 12.4 percent due to a high comparative from the previous year. At that time, a sale of stock resulted in an extraordinary gain for the company, boosting its bottom line.
For the 12 months ended Feb. 28, the retailer posted a net profit of 20.87 billion yen, or $193 million at average exchange rates for the period.
Operating profit gained 3.1 percent, totaling 34 billion yen, or $314.5 million.
Net sales for the year slipped 0.6 percent to 923.61 billion yen, or $8.54 billion, while favorable currency translations helped to bolster the bottom line.
With the department store business in Japan and elsewhere continuing to struggle, Takashimaya is focusing its efforts on urban development strategies. While existing stores continue to anchor busy thoroughfares, the retailer is also using its experience as a trade developer to create new spaces that bridge the gap between department stores and specialty retailers.
Thanks to various sales promotion efforts aimed at international visitors to Japan, Takashimaya said its duty-free sales grew in the double digits compared with last year.
The department store operator also released its guidance for its current fiscal year, which ends Feb. 28, 2018. It said it expects net profit to grow 3 percent to 21.5 billion yen, or $191.1 million at current exchange.
Takashimaya is predicting its yearly operating profit will increase by 2.9 percent to 35 billion yen, or $311.2 million.
The company forecasts sales growth of 2.1 percent for the year, totaling 943 billion yen, or $8.38 billion.