TOKYO—Takashimaya said Monday that net profit for the first quarter of its fiscal year jumped 44.7 percent compared with the same period a year earlier. In addition to higher sales, a spokesman for the company attributed the growth to a gain on the sale of shares.
For the three months ended May 31, Takashimaya reported a net profit of 5.45 billion yen, or $48.7 million at average exchange rates for the period.
The department store operator said operating profit gained 5.1 percent to 8.09 billion yen, or $72.3 million.
It posted first-quarter net sales growth of 2.8 percent, totalling 225.48 billion yen, or $2.02 billion.
Takashimaya said its department stores benefitted from strong personal consumption buoyed by an improved consumer mindset, increased incomes in Japan, and a renewed upsurge in demand from overseas visitors.
Like other Japanese department store operators, Takashimaya is trying out new business models in an attempt to stay competitive in a changing market. The company said that it has “endeavored to cater to the increasingly diverse array of customer needs and create sales spaces that deliver new value.” For example, in March it opened a new floor in its Shinjuku store focusing on wellbeing. In addition to shops and a café offering health-related items, the floor includes studios and a gym.
Takashimaya is also making efforts in the omni-channel segment, something which has taken off in Japan in recent years.
“We made efforts to harmonize the product lineup between stores and the online store, develop distinctive merchandise, provide a streaming service aimed at enhancing convenience for customers and in-store tablets to introduce customers to the online store,” the retailer said. “These and various other measures contributed to strong sales.”
The company left unchanged its guidance for the current fiscal year, ending Feb. 28. It expects net profit to grow by 3 percent to 21.5 billion yen, or $191.1 million at current exchange rates.
Takashimaya predicts its 12-month operating profit will increase by 2.9 percent to 35 billion yen, or $311.2 million.
It is forecasting yearly sales growth of 2.1 percent to 943 billion yen, or $8.38 billion.