Margins up as the Expo store drops out
Kintetsu Department Store Co., Ltd. (TSE: 8244), the Osaka-based operator of the Abeno Harukas Kintetsu Main Store, reported consolidated results for the first half of FY2/2027, the six months from March 1 to August 31, 2026, on October 9, 2026 under Japanese GAAP. Net sales fell 8.3% to ¥57,362 million, but operating profit rose 15.0% to ¥3,014 million and ordinary profit 16.0% to ¥3,052 million. Net profit attributable to owners of the parent fell 38.0% to ¥2,220 million, or ¥55.00 per share against ¥91.11.
Gross profit fell 7.1% to ¥29,116 million, less than sales, lifting the gross margin to about 50.8% from 50.1%, while selling, general and administrative expenses fell 9.2% to ¥26,102 million. The company booked construction contributions and gains on selling cross-held shares as special gains, and asset compression and store-refurbishment write-offs as special losses.
Department stores and interiors
The department-store segment's sales fell 9.9% to ¥46,252 million, mainly because the year-earlier half included the official store at the Osaka-Kansai Expo site, which opened in April 2025, and because the Nagoya store has closed. Segment profit nonetheless rose 9.3% to ¥2,379 million. At Abeno Harukas, a refurbished delicatessen floor, regional food fairs, firm tax-free sales on the weak yen and luxury sales to account customers kept every merchandise category above the prior year. The interior fit-out segment grew sales 63.1% to ¥3,125 million on hotel work and more than doubled profit to ¥699 million, while new-car sales at the wholesale and retail arm fell ahead of a model change.
Balance sheet, dividend and outlook
Total assets fell 3.0% to ¥120,999 million from the end of February, as cash and other receivables declined even as rising share prices lifted investment securities. Net assets rose 4.4% to ¥47,850 million, for an equity ratio of 39.5%, up from 36.7%. Operating cash flow was ¥3,155 million, against ¥9,273 million a year earlier.
The company raised its full-year forecast to net sales of ¥117,000 million (−6.7%), operating profit of ¥6,200 million (−7.7%), ordinary profit of ¥6,100 million (−7.8%) and net profit of ¥4,000 million (+7.8%), up from ¥116,000 million, ¥5,600 million, ¥5,500 million and ¥3,900 million. It also raised its planned year-end dividend to ¥25 from ¥20, the same as last year's ¥20 annual payout plus ¥5.
| Metric | H1 FY2/2027 | H1 FY2/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 57,362 | 62,546 | −8.3% |
| Gross profit (¥ million) | 29,116 | 31,358 | −7.1% |
| SG&A expenses (¥ million) | 26,102 | 28,737 | −9.2% |
| Operating profit (¥ million) | 3,014 | 2,620 | +15.0% |
| Ordinary profit (¥ million) | 3,052 | 2,630 | +16.0% |
| Net profit attrib. to owners of parent (¥ million) | 2,220 | 3,580 | −38.0% |
| EPS (¥) | 55.00 | 91.11 | −39.6% |
| Comprehensive income (¥ million) | 2,748 | 4,128 | −33.4% |
| Department stores — revenue (¥ million) | 46,252 | 51,348 | −9.9% |
| Department stores — segment profit (¥ million) | 2,379 | 2,177 | +9.3% |
| Interior fit-out — revenue (¥ million) | 3,125 | 1,915 | +63.1% |
| Interior fit-out — segment profit (¥ million) | 699 | 316 | +121.1% |
| Total assets (¥ million) | 120,999 | 124,749 | −3.0% |
| Net assets (¥ million) | 47,850 | 45,825 | +4.4% |
| Equity ratio | 39.5% | 36.7% | +2.8 pt |
| FY2/2027 guidance — revenue (¥ million) | 117,000 | — | −6.7% |
| FY2/2027 guidance — operating profit (¥ million) | 6,200 | — | −7.7% |
| FY2/2027 guidance — ordinary profit (¥ million) | 6,100 | — | −7.8% |
| FY2/2027 guidance — net profit (¥ million) | 4,000 | — | +7.8% |
| Annual dividend per share (¥) | 25.00 | 20.00 | +25.0% |
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.