J. Front Retailing Co., Ltd. (TSE: 3086), the holding company that runs the Daimaru and Matsuzakaya department stores and the Parco shopping-centre business, posted a mixed start to its fiscal year ending February 2027. For the first quarter (March 1–May 31, 2026) under IFRS, gross sales rose 3.3% year-on-year to ¥317.57 billion, but consolidated revenue eased 3.9% to ¥106.44 billion, operating profit fell 11.7% to ¥14.12 billion and net profit attributable to owners of the parent declined 7.5% to ¥9.70 billion. EPS was ¥39.19, down from ¥41.25.
Strong demand lifts gross sales as core business profit edges up
Gross sales — the group's total transaction value across its department stores — climbed on solid domestic demand and continued inbound spending by overseas visitors. The IFRS core measure of "business profit" (事業利益) rose 1.7% to ¥14.11 billion, underscoring that underlying operations strengthened. The decline in revenue partly reflects how concession and consignment sales are recognised on a net basis under IFRS, so a rise in gross transaction value does not translate one-for-one into reported revenue.
Lower one-off gains weigh on operating and pre-tax profit
Operating profit and pre-tax profit fell despite the firmer business profit, because the year-earlier quarter had booked larger "other operating income" — including property-related and other one-off gains — that did not recur this year. Operating profit slipped 11.7% to ¥14.12 billion and profit before tax dropped 12.3% to ¥13.24 billion, carrying the bottom line lower even as the trading business advanced. Total assets stood at ¥1,150.76 billion, with equity attributable to owners of ¥410.94 billion and an equity-to-assets ratio of 35.7%.
Dividend raised and full-year outlook
J. Front Retailing raised its FY2/2027 dividend forecast to ¥56.00 per share (¥28 interim plus ¥28 year-end), up from a prior plan of ¥54.00. For the full year, the group guides revenue of ¥469.0 billion (+5.4%), business profit of ¥52.0 billion (+2.8%), operating profit of ¥47.0 billion (−4.1%), pre-tax profit of ¥42.0 billion (−5.7%) and net profit of ¥29.0 billion (+2.5%), for EPS of ¥118.16.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 106.44 | 110.80 | −3.9% |
| Business profit (¥bn) | 14.11 | 13.87 | +1.7% |
| Operating profit (¥bn) | 14.12 | 15.99 | −11.7% |
| Profit before tax (¥bn) | 13.24 | 15.10 | −12.3% |
| Net profit attrib. (¥bn) | 9.70 | 10.48 | −7.5% |
| EPS (¥) | 39.19 | 41.25 | −5.0% |
| FY2/27 net guidance (¥bn) | 29.00 | 28.30 | +2.5% |
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