Refits and a tough comparison
J. Front Retailing Co., Ltd. (TSE: 3086), the Tokyo-based holding company of the Daimaru and Matsuzakaya department stores and the PARCO shopping centres, reported consolidated results for the first half of FY2/2027, the six months from March 1 to August 31, 2026, on October 13, 2026 under IFRS. Gross sales rose 2.5% to ¥638,200 million, while revenue fell 2.8% to ¥213,821 million, business profit 5.6% to ¥26,591 million and operating profit 10.5% to ¥26,813 million. Profit attributable to owners of the parent fell 5.3% to ¥17,379 million, or ¥70.62 per share against ¥72.80.
The company cited the drop-off in last year's Osaka-Kansai Expo-related sales, floor closures for the large-scale refit of Daimaru Umeda and the absence of last year's big interior and facility orders in its developer business. Gross profit edged down while selling, general and administrative expenses rose. In Nagoya's Sakae district it opened HAERA, a new complex combining its department store and PARCO, on June 11, and it completed a ¥10 billion share buyback.
Department stores and PARCO
Department-store revenue fell 1.0% to ¥128,351 million as the Umeda closures and the Expo comparison outweighed growth in sales to wealthy customers and tax-free sales, and operating profit fell 1.7% to ¥16,360 million, with advertising and wage increases adding costs. Daimaru Ashiya completed its first full refit in five years. The shopping-centre business grew revenue 7.3% to ¥35,515 million on Shibuya PARCO and HAERA and lifted business profit 1.3% to ¥8,434 million, but its operating profit fell 19.8% to ¥7,648 million against a year-earlier lease-termination gain from selling the former Matsumoto PARCO property.
Balance sheet, dividend and outlook
Total assets were little changed at ¥1,136,125 million and total equity at ¥428,814 million, for an equity ratio attributable to owners of the parent of 36.7%. The interim dividend is ¥28, against ¥27, and the company plans an annual ¥56.
J. Front revised its full-year forecast: gross sales to ¥1,360,000 million (+5.4%) from ¥1,347,000 million, revenue to ¥470,000 million from ¥469,000 million and business profit to ¥53,500 million (+5.7%) from ¥52,000 million, while operating profit was cut to ¥46,000 million from ¥47,000 million and pre-tax profit to ¥41,000 million from ¥42,000 million. Net profit is unchanged at ¥29,000 million (+2.5%).
| Metric | H1 FY2/2027 | H1 FY2/2026 | Change |
|---|---|---|---|
| Gross sales (¥ million) | 638,200 | 622,574 | +2.5% |
| Revenue (¥ million) | 213,821 | 219,925 | −2.8% |
| Business profit (¥ million) | 26,591 | 28,181 | −5.6% |
| Operating profit (¥ million) | 26,813 | 29,975 | −10.5% |
| Pre-tax profit (¥ million) | 24,868 | 27,874 | −10.8% |
| Net profit attrib. to owners of parent (¥ million) | 17,379 | 18,354 | −5.3% |
| EPS (¥) | 70.62 | 72.80 | −3.0% |
| Department stores — revenue (¥ million) | 128,351 | 129,612 | −1.0% |
| Department stores — segment profit (¥ million) | 16,360 | 16,649 | −1.7% |
| Shopping centres (PARCO) — revenue (¥ million) | 35,515 | 33,114 | +7.3% |
| Shopping centres (PARCO) — segment profit (¥ million) | 7,648 | 9,538 | −19.8% |
| Total assets (¥ million) | 1,136,125 | 1,141,567 | −0.5% |
| Shareholders' equity (¥ million) | 428,814 | 428,022 | +0.2% |
| Equity ratio | 36.7% | 36.4% | +0.3 pt |
| FY2/2027 guidance — gross sales (¥ million) | 1,360,000 | — | +5.4% |
| FY2/2027 guidance — revenue (¥ million) | 470,000 | — | +5.6% |
| FY2/2027 guidance — business profit (¥ million) | 53,500 | — | +5.7% |
| FY2/2027 guidance — operating profit (¥ million) | 46,000 | — | −6.2% |
| FY2/2027 guidance — net profit (¥ million) | 29,000 | — | +2.5% |
| Annual dividend per share (¥) | 56.00 | 54.00 | +3.7% |
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.