Izutsuya Co., Ltd. (TSE: 8260) reported consolidated results for the first quarter of the fiscal year ending February 28, 2027 (the three months from March 1 to May 31, 2026) under Japanese GAAP. Revenue slipped 2.3% to ¥4,984 million and operating profit fell 20.5% to ¥96 million, but profit further down the income statement fell far more sharply: ordinary profit collapsed 97.3% to ¥2 million and net profit dropped 90.5% to ¥11 million, leaving basic earnings per share at ¥0.99 against ¥10.26 a year earlier. Izutsuya is a regional department-store operator headquartered in Kokura, Kitakyushu (Fukuoka Prefecture) — the only department store in its region.
Sales slip and below-the-line costs erode profit
Revenue came in at ¥4,984 million, down 2.3% from ¥5,103 million, and operating profit at ¥96 million, down 20.5% from ¥121 million. The far sharper drop further down the income statement reflected higher non-operating costs that all but wiped out ordinary profit — which fell 97.3% to ¥2 million from ¥96 million — while net profit dropped 90.5% to ¥11 million from ¥115 million and EPS fell to ¥0.99 from ¥10.26. On a gross (principal-transaction) basis, department-store sales were ¥12,651 million, or 98.5% of the prior-year period; the reported ¥4,984 million of revenue is stated on an agent/net basis.
Regional department stores lag the inbound-fuelled majors
The department-store sector has been supported by inbound (foreign-tourist) demand and high-end spending in the big cities, but regional and suburban stores with little inbound demand remain in a tough environment. Izutsuya is pursuing its Izutsuya Group Medium-Term 3-Year Management Plan (FY2025–FY2027), which is focused on lifting asset value in its role as the region's sole department store.
Alliance with JAIC to build a regional trading company
In May, Izutsuya signed a business-alliance agreement with Japan Asia Investment Co., Ltd. (JAIC) to create new businesses and advance a regional trading-company (chiiki shosha) business, extending its role beyond conventional department-store retailing into the wider regional economy.
Full-year guidance held, dividend raised to ¥7.00
The balance sheet showed total assets of ¥43,068 million, net assets of ¥12,146 million, an equity ratio of 28.2% and book value per share of ¥1,093.09. Izutsuya kept its full-year FY2027/2 guidance unchanged, targeting revenue of ¥21,000 million (-1.3%), operating profit of ¥800 million (+30.0%), ordinary profit of ¥500 million (+5.7%) and net profit of ¥500 million (+1.7%), for EPS of ¥44.77. The company plans to lift the annual dividend to ¥7.00 from ¥6.00.
| Metric | Q1 FY2027/2 | Q1 FY2026/2 | YoY |
|---|---|---|---|
| Net sales (¥m) | 4,984 | 5,103 | -2.3% |
| Operating profit (¥m) | 96 | 121 | -20.5% |
| Ordinary profit (¥m) | 2 | 96 | -97.3% |
| Net profit (¥m) | 11 | 115 | -90.5% |
| Basic EPS (¥) | 0.99 | 10.26 | -90.4% |
| Total assets (¥m) | 43,068 | 43,330 | — |
| Equity ratio | 28.2% | 28.2% | — |
| FY2027/2 revenue guidance (¥m) | 21,000 | — | -1.3% |
| FY2027/2 operating profit guidance (¥m) | 800 | — | +30.0% |
| FY2027/2 net profit guidance (¥m) | 500 | — | +1.7% |
| Dividend per share (¥, forecast) | 7.00 | 6.00 | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.