Centering on the core Department Stores business, Takashimaya aims for sustained business growth, leveraging group synergies between businesses such as Real Estate (commercial facility development), Finance, Contract and Design.
Takashimaya Co., Ltd. was founded in 1831 and is the operator of one of the largest department store chains in Japan. It operates 14 domestic stores, including the Yokohama, Osaka, Kyoto, and Shinjuku stores. As a well-established department store, Takashimaya has brand strength, attracting mainly affluent customers for many years. The building that houses the Nihombashi store was given the status of a historic building and later designated as one of Japan’s Important Cultural Properties. It is also rolling out its business overseas, with department stores in Singapore (opened in 1993), Shanghai, China (2012), Ho Chi Minh City, Vietnam (2016), and Bangkok, Thailand (2018).
In FY02/22, Takashimaya reported operating revenue of JPY761.1bn (+11.8% YoY) and operating profit of JPY4.1bn (versus a loss of JPY13.5bn in FY02/21). The Department Store segment represents the company's core business (85.2% of FY02/22 operating revenue; operating loss of JPY6.6bn). The Commercial Property Development business (5.4%; operating profit of JPY7.3bn) is involved in the development and operation of shopping centers, and real estate development overseas. The Finance business (2.2%; operating profit of JPY4.4bn) mainly handles the credit card business, and the Contract and Design business (2.1%; operating loss of JPY504mn) deals with interior decorating for the company properties as well as for hotels and luxury brand boutiques.
In the Department Store business, inbound demand has been the growth driver in recent years. Inbound sales to tourists visiting Japan accounted for just under 20% of sales at its stores in Osaka and Shinjuku, which typically generate large amounts of tax-free sales to foreign tourists, but the COVID-19 pandemic has caused a rapid decline in the number of foreign visitors to Japan. Although Department Store revenue is down during the COVID-19 pandemic, the company has been undertaking a review of its earnings structure, implementing measures such as a reform of the sales floor with respect to apparel (a core product category), improving gross profit margin on product sales, and reducing SG&A expenses through cost structure reforms.
The company is also focusing on its Commercial Property Development business. Because the main source of income is rent from tenants, this segment enjoys relatively stable revenue and has remained profitable even during the COVID-19 pandemic. There is a strong connection to the Department Store business; for example, the Commercial Property Development business was able to boost the drawing power of department stores by bringing in attractive tenants to certain floors that had been experiencing a slump. The Commercial Property Development business is also expanding its portfolio to handle the development and management of condominiums and office buildings in Japan, rather than only commercial property development.
The company has positioned the Finance business to be highly compatible with the Department Store business, and intends to strengthen its relationships with customers through offering financial products that cater to customers’ important life events. Overseas, the company aims to expand department store sales in China, Vietnam, and Thailand, and targets medium- to long-term growth through real estate development in surrounding regions.
Trends and outlook
In FY02/22, Takashimaya reported operating revenue of JPY761.1bn (+11.8% YoY), operating profit of JPY4.1bn (versus a loss of JPY13.5bn in FY02/21), and net income attributable to owners of the parent of JPY5.4bn (versus a net loss of JPY34.0bn). Revenue in the mainstay Department Store business improved, but failed to return to the levels prior to the pandemic as consumer sentiment deteriorated due to a wave of COVID-19 cases and the resulting state of emergency declarations. Operating profit turned into the black. On the back of higher operating revenue, gross profit increased to JPY167.7bn (+12.4% YoY). SG&A expenses were kept under control at JPY229.0bn (+2.8% YoY) owing to cost-savings of about JPY9.6bn arising from structural reforms at the company's domestic department stores.
Company forecast for FY02/23 calls for operating revenue of JPY431.5bn (-43.3% YoY), operating profit of JPY17.5bn (+325.7% YoY), recurring profit of JPY16.0bn (+131.8% YoY), and net income attributable to owners of the parent of JPY10.0bn (+86.6% YoY). Although the company expects a decline in operating revenue due to the adoption of the Accounting Standard for Revenue Recognition from FY02/23, it forecasts total operating revenue (operating revenue based on previous accounting standards) of JPY831.5bn (+9.2% YoY). Total operating revenue and operating profit are expected to increase YoY owing to the absence of COVID-19-related store closures seen in FY02/22 and reduced impact from the pandemic in general.
The company released its "Three-year plan (FY2021–23)" in April 2021. FY02/24 targets include operating revenue of JPY850.0bn and operating profit of JPY30.0bn. Although these targets do not assume a full recovery in inbound tourism to Japan, and total operating revenue will fall short of the JPY919.1bn figure booked in FY02/20, the company’s target of JPY30bn for operating profit in FY02/24 exceeds the JPY25.6bn operating profit level reported for FY02/20, the bullish outlook here being based primarily on the cost savings expected from its structural reform efforts. For the domestic Department Store business, the company targets operating profit of JPY9.0bn in FY02/24 and for the overseas Department Store business targets operating profit of JPY4.7bn. For its Commercial Property Development business, the company targets operating profit of JPY10.0bn in FY02/24 and for its Finance business targets operating profit of JPY5.5bn. The company intends to boost annual e-commerce sales from JPY18.6bn in FY02/20 to JPY50.0bn by FY02/24. In the medium-term, it plans returns to shareholders totaling JPY40bn.
Strengths and weaknesses
Shared Research believes the company’s strengths are 1) strong support from core senior affluent customers, 2) strength of the store network and group’s development capability, and 3) strong presence in Asia. Weaknesses include its 1) falling customer count caused by demographic change, 2) business model with continual capex requirement, and 3) characteristic business practices including itaku hanbai (consignment sales) (see Strengths and weaknesses section for details).
Key financial data
Income statement
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
FY02/23
(JPYmn)
Act.
Act.
Act.
Act.
Act.
Act.
Act.
Act.
Act.
Est.
Total operating revenue
904,180
912,523
929,588
923,601
949,572
912,848
919,094
680,899
761,124
831,500
YoY
3.9%
0.9%
1.9%
-0.6%
2.8%
-3.9%
0.7%
-25.9%
11.8%
9.2%
Operating revenue
904,180
912,523
929,588
923,601
949,572
912,848
919,094
680,899
761,124
431,500
YoY
3.9%
0.9%
1.9%
-0.6%
2.8%
-3.9%
0.7%
-25.9%
11.8%
-43.3%
Sales
845,785
851,374
865,889
860,761
886,700
846,894
848,494
620,885
695,693
YoY
3.7%
0.7%
1.7%
-0.6%
3.0%
-4.5%
0.2%
-26.8%
12.0%
Gross profit
214,673
214,492
214,878
211,996
218,405
217,403
215,125
149,265
167,713
YoY
2.4%
-0.1%
0.2%
-1.3%
3.0%
-0.5%
-1.0%
-30.6%
12.4%
Gross profit margin(% of sales)
25.4%
25.2%
24.8%
24.6%
24.6%
25.7%
25.4%
24.0%
24.1%
Operating profit
29,099
32,022
32,972
34,000
35,318
26,661
25,582
-13,496
4,110
17,500
YoY
14.2%
10.0%
3.0%
3.1%
3.9%
-24.5%
-4.0%
-
-
325.8%
Operating profit margin(% of sales)
3.4%
3.8%
3.8%
3.9%
4.0%
3.1%
3.0%
-
0.6%
Recurring profit
33,350
35,904
37,785
37,215
38,606
31,234
23,200
-13,637
6,903
16,000
YoY
11.7%
7.7%
5.2%
-1.5%
3.7%
-19.1%
-25.7%
-
-
131.8%
Recurring profit margin(% of sales)
3.9%
4.2%
4.4%
4.3%
4.4%
3.7%
2.7%
-
1.0%
Net income
18,716
22,581
23,829
20,870
23,658
16,443
16,028
-33,970
5,360
10,000
YoY
13.2%
20.7%
5.5%
-12.4%
13.4%
-30.5%
-2.5%
-
-
86.6%
Net margin
2.2%
2.7%
2.8%
2.4%
2.7%
1.9%
1.9%
-
0.8%
Per-share data (JPY)
Shares issued (year-end; '000)('000 shares)
330,827
355,519
355,519
355,519
355,519
177,759
177,759
177,759
177,759
Shares issued (adjusted, year-end; '000)
165,414
177,759
177,759
177,759
177,759
177,759
177,759
177,759
177,759
EPS
113.5
132.6
135.8
119.4
135.4
94.1
93.3
-203.7
32.1
60.0
EPS (fully diluted)
102.4
112.1
119.6
105.1
119.2
81.4
76.6
-
-
Dividend per share
20.0
20.0
24.0
24.0
24.0
24.0
24.0
24.0
24.0
24.0
Book value per share
2,172
2,263
2,283
2,359
2,359
2,541
2,607
2,365
2,390
Balance sheet (JPYmn)
Cash and cash equivalents
106,451
87,887
75,487
107,159
99,541
97,090
89,820
106,675
90,672
Total current assets
332,121
288,147
290,625
325,500
327,501
307,568
287,764
283,607
269,828
Tangible fixed assets
394,436
412,474
417,307
413,703
550,757
621,228
715,804
706,535
706,306
Intangible assets
28,716
109,505
108,327
107,172
18,035
28,951
37,939
36,439
35,931
Investments and other assets
146,864
169,483
158,161
140,087
139,511
120,382
126,995
123,923
132,269
Total assets
902,139
979,611
974,421
986,464
1,035,807
1,078,130
1,168,503
1,150,506
1,144,335
Accounts payable
95,901
101,558
103,363
101,320
102,428
108,560
102,626
86,965
93,698
Short-term debt
48,224
38,088
17,885
9,516
50,777
14,131
75,036
56,291
27,157
Total current liabilities
335,599
336,703
325,082
319,793
370,888
349,216
397,915
402,625
352,815
Long-term debt
120,227
126,225
137,412
146,255
123,878
181,363
125,738
237,251
275,077
Total fixed liabilities
201,627
234,430
241,951
244,780
215,392
267,328
314,717
332,769
371,030
Total liabilities
537,227
571,133
567,034
564,574
586,281
616,545
712,632
735,395
723,846
Total net assets
364,912
408,477
407,386
421,890
449,526
461,585
455,871
415,111
420,489
Cash flow statement(JPYmn)
Cash flows from operating activities
40,582
41,018
25,638
42,266
36,870
67,913
40,608
43,720
21,044
Cash flows from investing activities
-30,389
-116,049
-16,081
-9,124
-62,286
-85,815
-23,434
-27,034
-37,120
Cash flows from financing activities
64,391
11,619
-19,239
-4,228
14,185
17,226
-23,483
2,303
-4,758
Financial ratios
Total interest-bearing debt
168,451
164,313
155,297
155,771
174,262
194,783
193,043
293,542
302,234
ROA (RP-based)
3.9%
3.8%
3.9%
3.8%
3.8%
3.0%
2.1%
-1.2%
0.6%
ROE
5.4%
5.9%
6.0%
5.1%
5.6%
3.7%
3.6%
-8.2%
1.4%
Equity ratio
39.7%
40.9%
40.9%
41.8%
42.2%
41.2%
37.2%
34.3%
34.8%
Source: Shared Research based on company data Notes: Figures may differ from company materials due to differences in rounding methods; ROA is based on recurring profit. From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company. From FY02/20, IFRS 16 “Leases” is adopted for overseas subsidiaries. The company conducted a one-for-two reverse stock split of common shares effective September 1, 2018. Per-share indicators are retroactively adjusted to reflect this. From FY02/23, the company has applied the Accounting Standard for Revenue Recognition (Accounting Standard Board of Japan Statement No. 29, March 31, 2020). For FY02/23, it forecasts total operating revenue (operating revenue based on previous accounting standards) of JPY831.5bn (+9.2% YoY).
Recent updates
Monthly sales report for April 2022
2022-05-16
Takashimaya Co., Ltd. released monthly sales
report for April 2022.
All-store sales
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
FY02/20
Total
Takashimaya (parent)
-0.1%
0.5%
0.3%
1.5%
0.0%
4.8%
32.1%
-18.8%
-5.0%
-5.2%
-3.7%
-12.9%
Takashimaya and regional stores
0.0%
0.5%
0.2%
1.4%
0.0%
4.7%
31.6%
-18.9%
-4.8%
-5.2%
-3.6%
-12.3%
Department Stores
Takashimaya (parent)
1.3%
-1.1%
-0.1%
0.7%
-1.4%
3.8%
33.4%
-19.7%
-4.3%
-4.9%
-2.8%
-12.8%
Takashimaya and regional stores
1.2%
-1.1%
-0.1%
0.7%
-1.3%
3.8%
32.8%
-19.7%
-4.2%
-4.9%
-2.7%
-12.2%
Corporate
-18.2%
28.7%
5.7%
17.9%
31.2%
26.9%
4.4%
-14.6%
-18.5%
-19.9%
-25.4%
-17.4%
Cross-media
-0.5%
12.9%
4.0%
0.8%
8.1%
6.2%
41.2%
3.2%
-3.9%
1.5%
4.2%
-2.9%
Tax-free sales
7.3%
2.7%
0.4%
-8.2%
-0.4%
-9.2%
-1.1%
-16.9%
-13.0%
-13.8%
11.1%
-69.9%
Store sales (following month; up to mid-month release)
-1.9%
-0.9%
-1.6%
1.6%
3.3%
13.9%
-30.3%
-9.1%
-5.4%
-3.5%
-9.9%
-32.9%
Tax-free sales
13.8%
-1.7%
-4.8%
-4.2%
-5.2%
-1.8%
-12.0%
-18.1%
-23.1%
9.0%
-60.4%
-91.2%
FY02/21
Total
Takashimaya (parent)
-34.6%
-69.8%
-58.7%
-16.3%
-18.9%
-20.2%
-34.5%
2.4%
-11.6%
-10.7%
-27.1%
-4.1%
Comparable stores
-33.9%
3.6%
-10.6%
-9.7%
-26.3%
-2.8%
Takashimaya and regional stores
-34.0%
-69.2%
-58.1%
-16.0%
-18.6%
-19.8%
-34.4%
2.6%
-11.6%
-10.6%
-26.7%
-4.7%
Comparable stores
-33.7%
-69.1%
-57.8%
-15.5%
-18.2%
-19.2%
-33.5%
4.2%
-10.1%
-9.1%
-25.6%
-3.0%
Department Stores
Takashimaya (parent)
-36.1%
-75.7%
-64.1%
-17.2%
-20.4%
-19.6%
-36.0%
0.7%
-12.9%
-13.2%
-30.2%
-7.8%
Comparable stores
-35.4%
1.9%
-11.9%
-12.1%
-29.4%
-6.5%
Takashimaya and regional stores
-35.5%
-74.7%
-63.0%
-16.8%
-20.0%
-19.2%
-35.9%
1.0%
-12.8%
-12.9%
-29.6%
-8.2%
Comparable stores
-35.0%
-74.6%
-62.8%
-16.3%
-19.5%
-18.6%
-34.9%
2.7%
-11.3%
-11.3%
-28.4%
-6.4%
Corporate
-28.2%
-3.4%
-12.7%
-22.2%
-13.5%
-40.8%
-20.1%
25.5%
1.3%
9.3%
21.5%
39.3%
Cross-media
19.6%
4.8%
44.6%
37.5%
21.6%
19.1%
3.8%
23.8%
16.8%
22.5%
24.2%
32.5%
Tax-free sales
-92.5%
-99.1%
-98.7%
-94.2%
-92.2%
-88.4%
-92.8%
-92.7%
-90.4%
-87.6%
-86.7%
-46.9%
Store sales (following month; up to mid-month release)
-62.8%
-81.7%
-21.4%
-18.5%
-18.7%
-26.3%
8.0%
-11.9%
-13.8%
-37.6%
-31.5%
19.3%
Tax-free sales
-98.4%
-99.9%
-93.5%
-93.2%
-90.4%
-90.5%
-94.1%
-90.0%
-87.6%
-34.1%
-27.6%
106.4%
FY02/22
Total
Takashimaya (parent)
27.9%
143.2%
46.5%
1.4%
3.8%
-9.1%
-0.5%
5.1%
8.9%
9.7%
21.6%
4.3%
Comparable stores
29.5%
147.5%
48.6%
2.6%
5.6%
-7.7%
-
-
-
-
-
-
Takashimaya and regional stores
26.6%
140.3%
45.6%
1.7%
3.8%
-10.0%
-0.8%
4.9%
8.7%
9.4%
20.8%
3.8%
Comparable stores
28.0%
144.1%
47.5%
2.9%
5.4%
-8.7%
-
-
-
-
-
-
Department Stores
Takashimaya (parent)
27.8%
197.6%
57.0%
1.0%
5.7%
-9.7%
-2.5%
5.8%
9.1%
10.2%
22.8%
2.9%
Comparable stores
29.5%
204.7%
59.8%
2.3%
7.7%
-8.1%
-
-
-
-
-
-
Takashimaya and regional stores
26.4%
187.8%
54.8%
1.4%
5.5%
-10.5%
-2.7%
5.6%
8.9%
9.8%
21.8%
2.5%
Comparable stores
28.0%
193.9%
57.3%
2.7%
7.4%
-9.2%
-
-
-
-
-
-
Corporate
35.5%
-18.7%
3.1%
10.5%
-15.8%
2.3%
33.7%
-3.4%
10.0%
-2.1%
14.2%
19.2%
Cross-media
16.9%
12.0%
4.7%
-1.6%
-13.2%
-10.4%
1.4%
-1.3%
1.1%
10.6%
4.8%
1.7%
Tax-free sales
131.8%
1,464.2%
755.2%
179.2%
116.4%
67.4%
151.3%
149.5%
95.2%
55.2%
62.6%
9.3%
Store sales (following month; up to mid-month release)
118.4%
161.4%
3.1%
4.2%
-10.7%
-8.1%
2.9%
5.9%
8.4%
33.4%
2.1%
4.3%
Tax-free sales
784.4%
30,438.8%
189.5%
172.8%
111.2%
77.5%
179.5%
91.6%
60.0%
82.7%
23.9%
-11.5%
FY02/23
Total
Takashimaya stores(Parent)
8.1%
23.1%
Takashimaya and regional stores
7.8%
22.0%
Department Stores
Takashimaya (parent)
6.1%
23.7%
Takashimaya and regional stores
6.0%
22.5%
Corporate
38.1%
30.6%
Cross-media
2.1%
-6.6%
Tax-free sales
-7.1%
77.4%
Store sales (following month; up to mid-month release)
12.5%
97.2%
Tax-free sales
27.1%
171.5%
Monthly store sales YoY
2021
2022
FY02/22
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Act.
% of total
Takashimaya stores(Parent)
46.5%
1.4%
3.8%
-9.1%
-0.5%
5.1%
8.9%
9.7%
21.6%
4.3%
8.1%
23.1%
597,951
93.1%
Takashimaya and domestic dept. store subsidiaries
45.6%
1.7%
3.8%
-10.0%
-0.8%
4.9%
8.7%
9.4%
20.8%
3.8%
7.8%
22.0%
642,417
100.0%
Monthly sales by store
Osaka
-22.0%
2.3%
10.6%
0.1%
-7.5%
0.9%
14.6%
13.1%
23.7%
7.9%
6.3%
40.7%
109,269
17.0%
Sakai
-9.7%
-1.2%
-2.7%
-8.4%
-6.2%
-1.3%
5.5%
1.7%
2.7%
-6.5%
1.2%
18.0%
10,005
1.6%
Kyoto/Rakusei
49.2%
2.0%
7.5%
-6.0%
-4.6%
0.9%
12.5%
9.6%
19.4%
-1.9%
-3.9%
26.2%
74,026
11.5%
Senboku
-18.0%
-5.6%
-2.5%
-13.1%
-5.5%
-3.0%
2.1%
1.0%
-1.6%
-8.2%
-1.0%
16.4%
14,419
2.2%
Nihombashi
60.2%
0.8%
6.5%
-10.6%
-0.9%
14.2%
2.9%
0.7%
25.6%
4.3%
11.8%
23.1%
123,999
19.3%
Yokohama
177.1%
5.5%
8.0%
-11.6%
-0.8%
9.0%
12.2%
12.4%
31.5%
4.5%
6.7%
9.9%
118,596
18.5%
Shinjuku
76.8%
9.5%
23.8%
-5.3%
3.5%
12.1%
12.3%
26.3%
27.9%
10.4%
16.4%
41.2%
58,439
9.1%
Tamagawa
49.4%
1.0%
2.6%
-9.1%
3.9%
6.3%
4.1%
8.0%
22.6%
-1.5%
5.3%
24.1%
40,298
6.3%
Tachikawa
21.2%
-6.1%
-3.7%
-12.2%
0.7%
2.5%
-2.1%
-0.9%
11.0%
2.4%
4.3%
21.1%
8,150
1.3%
Omiya
61.2%
-8.1%
-0.8%
-16.6%
-11.6%
-6.5%
-3.3%
0.2%
4.9%
-4.2%
-1.3%
3.1%
7,321
1.1%
Kashiwa
80.1%
-2.6%
-1.7%
-18.8%
-4.8%
0.3%
2.7%
6.1%
12.3%
-4.9%
2.2%
4.5%
33,423
5.2%
Okayama Takashimaya
13.0%
-8.5%
1.2%
-19.6%
-9.1%
-4.4%
8.7%
8.5%
9.8%
3.8%
0.8%
4.2%
16,523
2.6%
Gifu Takashimaya
46.6%
36.6%
8.2%
-17.7%
-5.8%
2.9%
9.1%
4.2%
9.2%
-8.2%
6.2%
10.4%
12,833
2.0%
Takasaki Takashimaya
56.0%
-0.9%
1.3%
-24.3%
-0.3%
9.5%
0.7%
3.7%
14.2%
-3.4%
7.1%
14.0%
15,109
2.4%
Department store (Takashimaya)
45.6%
1.7%
3.8%
-10.0%
-0.8%
4.9%
8.7%
9.4%
20.8%
3.8%
7.8%
22.0%
585,328
91.1%
Corporate
3.1%
10.5%
-15.8%
2.3%
33.7%
-3.4%
10.0%
-2.1%
14.2%
19.2%
38.1%
30.6%
33,863
5.3%
Cross-media
4.7%
-1.6%
-13.2%
-10.4%
1.4%
-1.3%
1.1%
10.6%
4.8%
1.7%
2.1%
-6.6%
23,225
3.6%
Customer count by store
Osaka
-12.1%
-23.9%
-10.3%
-23.3%
-28.3%
-14.5%
1.2%
23.4%
16.1%
0.1%
-0.6%
43.9%
Sakai
17.3%
5.7%
0.0%
-4.8%
-6.3%
-0.3%
0.5%
2.7%
2.7%
-2.5%
-1.8%
10.1%
Kyoto, Rakusai
15.7%
-6.7%
0.5%
-14.8%
-16.1%
-5.3%
-2.2%
5.1%
10.6%
-4.7%
-5.6%
21.4%
Senboku
-15.0%
-12.2%
-2.5%
-11.9%
-8.3%
-2.2%
-2.6%
1.5%
-3.2%
-8.8%
-3.6%
14.5%
Nihombashi
23.1%
-0.8%
4.8%
-13.5%
-12.2%
2.3%
8.8%
15.5%
24.2%
0.9%
3.9%
24.9%
Yokohama
143.6%
8.0%
16.6%
-8.5%
-1.6%
10.3%
20.6%
18.6%
34.4%
5.7%
0.0%
5.5%
Shinjuku
55.6%
-2.7%
17.1%
-17.3%
-11.4%
-4.4%
0.9%
7.3%
15.4%
-6.2%
3.7%
27.4%
Tamagawa
34.7%
-0.4%
5.7%
-19.0%
-12.1%
-9.0%
-1.8%
0.4%
10.2%
-6.3%
-0.4%
12.2%
Tachikawa
31.0%
-4.9%
4.5%
-15.0%
-3.1%
-2.5%
1.5%
2.6%
9.0%
-8.5%
-4.6%
11.5%
Omiya
70.6%
-6.6%
5.1%
-16.4%
-10.3%
3.2%
1.4%
4.5%
11.8%
-7.3%
-3.3%
6.9%
Kashiwa, Foodmaison Otakanomori
62.2%
-0.1%
4.1%
-10.6%
-7.4%
-4.8%
3.1%
5.9%
12.1%
-3.8%
1.4%
2.0%
Okayama Takashimaya
-59.3%
-66.8%
-61.4%
-69.3%
-68.0%
-66.6%
-63.2%
-58.4%
-63.4%
-67.2%
-5.0%
4.5%
Gifu Takashimaya
41.9%
-2.9%
-2.2%
-17.7%
-15.7%
-3.3%
-5.8%
1.1%
6.6%
-13.1%
-4.3%
2.2%
Takasaki Takashimaya
57.0%
-4.2%
5.7%
-11.7%
6.3%
3.9%
-3.7%
6.0%
8.3%
-6.8%
2.7%
11.3%
Takashimaya and domestic dept. store subsidiaries
34.5%
-9.3%
-1.3%
-18.8%
-14.8%
-6.1%
0.9%
7.1%
10.8%
-5.9%
6.0%
15.5%
By product (Takashimaya, domestic dept. store subsidiaries)
(JPYmn)
Apparel
66.4%
-3.5%
0.2%
-13.6%
-4.0%
4.3%
11.6%
13.1%
25.1%
-4.3%
3.3%
24.1%
150,794
25.2%
Menswear and goods
43.7%
-7.6%
-2.2%
-11.4%
-8.4%
0.0%
7.1%
13.7%
24.9%
-2.0%
9.1%
31.1%
26,600
4.4%
Womenswear and goods
90.6%
1.2%
1.6%
-13.2%
-2.5%
8.7%
15.7%
16.5%
28.1%
-3.6%
3.8%
27.1%
101,957
17.1%
Children's wear and goods
5.2%
-18.2%
-6.7%
-22.8%
-11.2%
-9.3%
-2.1%
6.2%
10.0%
-11.0%
-3.2%
12.2%
11,470
1.9%
Other apparel
48.0%
-17.3%
1.4%
-13.2%
-1.0%
-7.1%
-6.0%
-10.6%
12.1%
-8.6%
-3.8%
-3.1%
10,765
1.8%
Personal items
107.1%
12.8%
13.7%
-5.9%
-0.4%
13.1%
23.7%
23.4%
33.7%
16.7%
13.1%
44.6%
100,977
16.9%
Household goods
19.1%
-3.6%
-9.7%
-22.4%
-14.1%
-2.3%
8.4%
-0.1%
2.4%
-14.1%
7.0%
10.2%
37,638
6.3%
Furniture
44.3%
0.2%
4.2%
-4.8%
0.1%
6.0%
2.9%
15.9%
16.9%
2.0%
18.0%
27.9%
8,489
1.4%
Home appliances
3.8%
-9.2%
-21.5%
-35.5%
-51.9%
-34.3%
6.5%
-26.4%
-15.8%
10.0%
45.0%
46.7%
4,307
0.7%
Household goods
17.0%
-3.8%
-12.3%
-26.0%
-10.1%
1.4%
10.6%
-0.3%
2.8%
-23.8%
-2.6%
-2.2%
24,840
4.2%
Food
12.2%
2.3%
2.8%
-6.7%
10.8%
2.9%
6.0%
4.3%
12.9%
11.2%
12.4%
18.1%
192,284
32.2%
Fresh produce
-5.4%
-2.6%
-1.4%
-13.0%
1.2%
-6.9%
-1.7%
-2.8%
-2.1%
-1.7%
3.4%
1.4%
32,443
5.4%
Confectionery
31.2%
6.7%
6.8%
-2.7%
18.5%
9.7%
14.3%
12.4%
18.0%
14.6%
16.7%
31.6%
55,056
9.2%
Deli foods
18.6%
7.0%
7.0%
-6.2%
17.4%
7.2%
5.4%
3.6%
15.1%
16.0%
16.3%
20.4%
55,463
9.3%
Other foods
6.5%
-1.5%
-1.7%
-6.5%
2.7%
-0.6%
4.4%
1.1%
15.2%
9.8%
7.4%
14.4%
49,320
8.2%
Restaurants and cafes
177.7%
-4.8%
4.3%
-33.2%
-23.4%
0.0%
10.0%
23.6%
35.0%
-2.1%
5.8%
38.3%
6,905
1.2%
Accessories
84.6%
-0.4%
6.5%
-9.2%
-5.9%
4.2%
-0.1%
7.3%
20.0%
1.5%
2.9%
12.3%
91,474
15.3%
Cosmetics
72.9%
-11.5%
-0.9%
-9.8%
-3.8%
5.4%
0.1%
10.2%
12.9%
4.6%
4.0%
6.6%
40,062
6.7%
Art work and jewelry
175.4%
18.1%
17.0%
-2.3%
-6.9%
12.0%
9.3%
11.9%
54.1%
10.6%
11.6%
25.2%
40,614
6.8%
Other accessories
-9.1%
-11.9%
-4.2%
-31.1%
-10.2%
-24.0%
-23.4%
-14.9%
-23.1%
-29.6%
-21.7%
-6.3%
10,797
1.8%
Services
73.0%
8.1%
11.1%
-11.3%
-5.5%
12.2%
-18.7%
-8.7%
104.9%
15.7%
21.1%
6.3%
17,876
3.0%
Other
45.2%
8.0%
8.5%
10.2%
-2.1%
6.7%
-0.1%
7.2%
5.2%
-9.5%
7.5%
-2.2%
Total
45.6%
1.7%
3.8%
-10.0%
-0.8%
4.9%
8.7%
9.4%
20.8%
3.8%
7.8%
22.0%
597,951
100.0%
Revisions to full-year earnings forecast
2022-04-08
On April 7, 2022, Takashimaya Co., Ltd. announced revisions to its full-year earnings forecast.
Revised forecast for full-year FY02/22
Operating revenue: JPY761.0bn (versus previous forecast of JPY764.0bn)
Operating profit: JPY4.1bn (JPY6.0bn)
Recurring profit: JPY6.9bn (JPY6.0bn)
Net income attributable to owners of the parent: JPY5.3bn (JPY2.3bn)
EPS: JPY31.8 (JPY13.8)
Reasons for forecast revision
The downward revision to the company's operating profit estimate reflected a shortfall in store sales in January and February, which came in roughly 7% (JPY7.0bn) lower than expected as consumer spending slowed following the implementation of priority preventive measures after the start of 2022.
The upward revision to its forecast for net income attributable to owners of the parent reflected a JPY4.4bn improvement in deferred income taxes. This was due to an increase in deferred tax assets as the company's business adaptation plan was approved under the revised Industrial Competitiveness Enhancement Act.
The company upwardly revised its recurring profit forecast as non-operating income increased JPY2.7bn due to employment adjustment subsidy and other subsidies associated with temporary store closures.
Trends and outlook
Quarterly trends and results
Cumulative
FY02/20
FY02/21
FY02/22
FY02/22
(JPYmn)
Q1
Q1–Q2
Q1–Q3
Q1–Q4
Q1
Q1–Q2
Q1–Q3
Q1–Q4
Q1
Q1–Q2
Q1–Q3
Q1–Q4
% of Est.
FY Est.
Operating revenue
223,682
453,144
676,639
919,094
116,204
297,352
479,880
680,899
164,959
347,189
537,289
761,124
100.0%
761,000
YoY
1.8%
2.6%
2.6%
0.7%
-48.0%
-34.4%
-29.1%
-25.9%
42.0%
16.8%
12.0%
11.8%
11.8%
Sales
205,744
417,630
623,531
848,494
102,159
268,559
434,631
620,885
148,945
315,080
488,642
695,693
YoY
1.0%
2.0%
2.0%
0.2%
-50.3%
-35.7%
-30.3%
-26.8%
-
-
12.4%
12.0%
Gross profit
52,963
106,453
159,332
215,125
24,221
64,207
104,711
149,265
36,007
76,218
118,176
167,713
YoY
-0.5%
0.6%
0.7%
-1.0%
-54.3%
-39.7%
-34.3%
-30.6%
48.7%
18.7%
12.9%
12.4%
Gross profit margin
25.7%
25.5%
25.6%
25.4%
23.7%
23.9%
24.1%
24.0%
24.2%
24.2%
24.2%
24.1%
SG&A expenses
63,154
128,543
192,178
260,142
45,635
103,219
160,473
222,775
52,738
110,341
167,920
229,033
YoY
3.9%
3.2%
2.8%
1.3%
-27.7%
-19.7%
-16.5%
-14.4%
15.6%
6.9%
4.6%
2.8%
SG&A ratio
30.7%
30.8%
30.8%
30.7%
44.7%
38.4%
36.9%
35.9%
35.4%
35.0%
34.4%
32.9%
Operating profit
7,746
13,424
20,261
25,582
-7,368
-10,217
-10,513
-13,496
-717
-2,014
-1,096
4,110
100.2%
4,100
YoY
-9.4%
0.0%
4.5%
-4.0%
-
-
-
-
-
-
-
-
-
Operating profit margin
3.8%
3.2%
3.2%
3.0%
-
-
-
-
-
-
-
0.6%
-
Recurring profit
7,117
12,659
19,403
23,200
-8,684
-10,914
-10,934
-13,637
148
-559
1,342
6,903
100.0%
6,900
YoY
-28.6%
-21.5%
-15.2%
-25.7%
-
-
-
-
-
-
-
-
-
Recurring profit margin
3.5%
3.0%
3.1%
2.7%
-
-
-
-
0.1%
-
0.3%
1.0%
-
Net income
10,597
12,404
16,447
16,028
-20,530
-23,284
-24,377
-33,970
-1,305
-4,375
-3,715
5,360
101.1%
5,300
YoY
81.3%
41.2%
43.8%
-2.5%
-
-
-
-
-
-
-
-
-
Net margin
5.2%
3.0%
2.6%
1.9%
-20.1%
-8.7%
-5.6%
-5.5%
-0.9%
-1.4%
-
0.8%
-
Quarterly
FY02/20
FY02/21
FY02/22
(JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Operating revenue
223,682
229,462
223,495
242,455
116,204
181,148
182,528
201,019
164,959
182,230
190,100
223,835
YoY
1.8%
3.5%
2.5%
-4.3%
-48.0%
-21.1%
-18.3%
-17.1%
42.0%
0.6%
4.1%
11.4%
Sales
205,744
211,886
205,901
224,963
102,159
166,400
166,072
186,254
148,945
166,135
173,562
207,051
YoY
1.0%
3.1%
1.9%
-4.5%
-50.3%
-21.5%
-19.3%
-17.2%
45.8%
-0.2%
4.5%
11.2%
Gross profit
52,963
53,490
52,879
55,793
24,221
39,986
40,504
44,554
36,007
40,211
41,958
49,537
YoY
-0.5%
1.8%
0.9%
-5.8%
-54.3%
-25.2%
-23.4%
-20.1%
48.7%
0.6%
3.6%
11.2%
Gross profit margin
25.7%
25.2%
25.7%
24.8%
23.7%
24.0%
24.4%
23.9%
24.2%
24.2%
24.2%
23.9%
SG&A expenses
63,154
65,389
63,635
67,964
45,635
57,584
57,254
62,302
52,738
57,603
57,579
61,113
YoY
3.9%
2.5%
1.9%
-2.5%
-27.7%
-11.9%
-10.0%
-8.3%
15.6%
0.0%
0.6%
-1.9%
SG&A ratio
30.7%
30.9%
30.9%
30.2%
44.7%
34.6%
34.5%
33.5%
35.4%
34.7%
33.2%
29.5%
Operating profit
7,746
5,678
6,837
5,321
-7,368
-2,849
-296
-2,983
-717
-1,297
918
5,206
YoY
-9.4%
16.6%
14.7%
-26.9%
-
-
-
-
-
-
-
-
Operating profit margin
3.8%
2.7%
3.3%
2.4%
-7.2%
-1.7%
-0.2%
-1.6%
-0.5%
-0.8%
0.5%
2.5%
Recurring profit
7,117
5,542
6,744
3,797
-8,684
-2,230
-20
-2,703
148
-707
1,901
5,561
YoY
-28.6%
-10.0%
-0.1%
-54.6%
-
-
-
-
-
-
-
-
Recurring profit margin
3.5%
2.6%
3.3%
1.7%
-8.5%
-1.3%
0.0%
-1.5%
0.1%
-0.4%
1.1%
2.7%
Net income
10,597
1,807
4,043
-419
-20,530
-2,754
-1,093
-9,593
-1,305
-3,070
660
9,075
YoY
81.3%
-38.5%
52.2%
-
-
-
-
-
-
-
-
-
Net margin
5.2%
0.9%
2.0%
-0.2%
-20.1%
-1.7%
-0.7%
-5.2%
-0.9%
-1.8%
0.4%
4.4%
Source: Shared Research based on company data Note: From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company; includes some figures based on Shared Research estimates. Note: From FY02/20, IFRS 16 “Leases” is adopted for overseas subsidiaries.
Impact of the adoption of IFRS 16 for lease accounting: The group’s overseas subsidiaries adopted IFRS 16 for lease accounting starting FY02/20. The impact of this switch added a total of JPY2.7bn to operating profit during FY02/20 while reducing both recurring profit and pre-tax profit by JPY2.0bn versus FY02/19. At the individual segment level, the adoption of IFRS 16 added JPY2.4bn to operating profit at the Department Store segment and JPY882mn to operating profit at the Commercial Property Development segment, with this reduced in part by a JPY632mn adjustment charge at the consolidated level.
By segment
FY02/20
FY02/21
FY02/22
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
% of Est.
FY Est.
Operating revenue
223,682
229,462
223,495
242,455
116,204
181,148
182,528
201,019
164,959
182,230
190,100
223,835
100.0%
761,000
YoY
1.8%
3.5%
2.5%
-4.3%
-48.0%
-21.1%
-18.3%
-17.1%
42.0%
0.6%
4.1%
11.4%
11.8%
Department Stores
193,316
195,134
191,949
204,376
88,616
153,347
156,375
172,140
138,206
154,849
163,400
191,906
98.0%
661,269
YoY
0.6%
1.8%
1.1%
-6.5%
-54.2%
-21.4%
-18.5%
-15.8%
56.0%
1.0%
4.5%
11.5%
15.9%
Commercial Property Development
11,365
11,162
11,261
11,743
8,397
9,092
10,409
9,083
9,899
10,401
10,357
10,528
78.9%
52,177
YoY
8.2%
6.6%
6.5%
-3.2%
-26.1%
-18.5%
-7.6%
-22.7%
17.9%
14.4%
-0.5%
15.9%
41.1%
Finance
4,363
4,256
4,383
4,455
4,035
4,068
4,122
4,025
4,244
3,933
4,126
4,212
80.4%
20,553
YoY
6.1%
9.6%
13.3%
10.5%
-7.5%
-4.4%
-6.0%
-9.7%
5.2%
-3.3%
0.1%
4.6%
26.5%
Contract and Design
6,628
9,741
6,357
10,464
7,258
5,318
2,828
3,675
3,960
4,298
3,510
4,563
82.0%
19,927
YoY
23.8%
42.4%
17.6%
45.5%
9.5%
-45.4%
-55.5%
-64.9%
-45.4%
-19.2%
24.1%
24.2%
4.4%
Other
8,008
9,168
9,544
11,418
7,896
9,324
8,793
12,095
8,648
8,748
8,708
12,625
384.5%
10,072
YoY
3.4%
3.3%
4.0%
7.4%
-1.4%
1.7%
-7.9%
5.9%
9.5%
-6.2%
-1.0%
4.4%
-73.6%
Operating profit
7,746
5,678
6,837
5,321
-7,368
-2,849
-296
-2,983
-717
-1,297
918
5,206
68.5%
6,000
YoY
-9.4%
16.6%
14.7%
-26.9%
-
-
-
-
-
-
-
-
-
Operating profit margin
3.5%
2.5%
3.1%
2.2%
-6.3%
-1.6%
-0.2%
-1.5%
-0.4%
-0.7%
0.5%
2.3%
0.8%
Department Stores
2,849
1,425
2,289
375
-8,608
-5,280
-2,975
-4,460
-3,160
-3,802
-1,726
2,127
-
-3,710
YoY
-28.1%
207.1%
28.7%
-84.9%
-
-
-
-
-
-
-
-
-
Operating profit margin
1.5%
0.7%
1.2%
0.2%
-
-
-
-
-
-
-
1.1%
-0.6%
Commercial Property Development
2,914
2,108
2,505
2,395
2,112
1,126
2,241
388
2,087
1,433
2,387
1,372
109.5%
6,647
YoY
10.5%
0.7%
11.0%
-1.1%
-27.5%
-46.6%
-10.5%
-83.8%
-
-
-
253.6%
13.3%
Operating profit margin
25.6%
18.9%
22.2%
20.4%
25.2%
12.4%
21.5%
4.3%
21.1%
13.8%
23.0%
13.0%
12.7%
Finance
1,401
1,205
1,271
1,001
1,058
1,048
1,069
1,113
1,274
895
1,141
1,048
102.7%
4,243
YoY
3.1%
-11.3%
-9.1%
-24.8%
-24.5%
-13.0%
-15.9%
11.2%
-
-
-
-5.8%
-1.1%
Operating profit margin
32.1%
28.3%
29.0%
22.5%
26.2%
25.8%
25.9%
27.7%
30.0%
22.8%
27.7%
24.9%
20.6%
Contract and Design
175
583
528
493
115
-236
-409
-450
-319
187
-530
158
-
0
YoY
-
21.5%
363.2%
186.6%
-34.3%
-
-
-
-
-
-
-
-
Operating profit margin
2.6%
6.0%
8.3%
4.7%
1.6%
-
-
-
-
4.4%
-
3.5%
0.0%
Other
347
629
684
902
20
356
250
832
-11
442
299
883
-
-1,180
YoY
32.4%
4.7%
12.9%
0.0%
-94.2%
-43.4%
-63.5%
-7.8%
-
-
-
6.1%
-
Operating profit margin
4.3%
6.9%
7.2%
7.9%
0.3%
3.8%
2.8%
6.9%
-
5.1%
3.4%
7.0%
-
Adjustments
59
-274
-438
154
-2,067
138
-472
-406
-589
-452
-653
-380
Source: Shared Research based on company data Note: From FY02/20, Takashimaya Insurance was transferred from the Other segment to the Finance segment (data in table retroactively adjusted). Note: Effective Q3 FY02/20, the name of the Real Estate segment was changed to the Commercial Property Development segment. Note: FY02/22 estimates are based on previous forecast figures.
Segment name change: Effective Q3 FY02/20, the company has changed the name of its Real Estate segment to the Commercial Property Development segment. The name change was made to better reflect the nature of the company’s businesses in this area, which under its Machi-Zukuri (urban development) strategy will involve not only property and facilities management but also expanded efforts to develop commercial properties that will work to the benefit of its department store business.
Department Store segment: quarterly performance
Department Stores
FY02/20
FY02/21
FY02/22
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
% of Est.
FY Est.
Operating revenue
193,316
195,134
191,949
204,376
88,616
153,347
156,375
172,140
138,206
154,849
163,400
191,906
98.0%
661,269
YoY
0.6%
1.8%
1.1%
-6.5%
-54.2%
-21.4%
-18.5%
-15.8%
56.0%
1.0%
4.5%
11.5%
15.9%
Parent
176,677
179,838
176,473
189,248
83,593
147,056
146,910
163,230
129,970
146,120
153,740
181,952
99.3%
616,077
YoY
0.5%
1.9%
1.1%
-6.5%
-52.7%
-18.2%
-16.8%
-13.7%
55.5%
-0.6%
4.6%
11.5%
13.9%
Takashimaya Singapore
4,085
4,112
3,792
4,996
3,177
794
2,575
3,731
2,977
2,894
3,161
4,450
102.2%
13,197
YoY
-4.2%
-5.5%
-8.0%
-7.7%
-22.2%
-80.7%
-32.1%
-25.3%
-6.3%
264.5%
22.8%
19.3%
28.4%
Shanghai Takashimaya
849
791
956
544
509
600
623
667
767
753
750
689
94.6%
3,127
YoY
-0.6%
-0.1%
27.6%
-31.2%
-40.0%
-24.1%
-34.8%
22.6%
50.7%
25.5%
20.4%
3.3%
30.3%
Takashimaya Vietnam
469
463
472
594
382
319
435
599
510
306
25
455
77.3%
1,676
YoY
19.9%
10.5%
7.3%
12.5%
-18.6%
-31.1%
-7.8%
0.8%
33.5%
-4.1%
-94.3%
-24.0%
-3.4%
Other, adjustments
11,236
9,930
10,256
8,994
955
4,578
5,832
3,913
3,982
4,776
5,724
4,360
69.3%
27,192
Operating profit
2,849
1,425
2,289
375
-8,608
-5,280
-2,975
-4,460
-3,160
-3,802
-1,726
2,127
-
-3,710
YoY
-28.1%
207.1%
28.7%
-84.9%
-
-
-
-
-
-
-
-
-
Operating profit margin
1.5%
0.7%
1.2%
0.2%
-
-
-
-
-
-
-
1.1%
-
Parent
1,938
945
1,543
-498
-7,986
-4,566
-2,907
-4,759
-3,444
-3,389
-2,181
1,254
-
-4,694
YoY
-46.7%
16.5%
-7.5%
-
-
-
-
-
-
-
-
-
-
Operating profit margin
1.1%
0.5%
0.9%
-
-
-
-
-
-
-
-
0.7%
-
Takashimaya Singapore
1,179
1,063
1,038
1,490
562
18
142
762
331
67
319
1,145
107.6%
1,731
YoY
47.0%
67.1%
62.2%
26.1%
-52.3%
-98.3%
-86.3%
-48.9%
-41.1%
272.2%
124.6%
50.3%
16.6%
Operating profit margin
28.9%
25.9%
27.4%
29.8%
17.7%
2.3%
5.5%
20.4%
11.1%
2.3%
10.1%
25.7%
13.1%
Shanghai Takashimaya
28
28
111
-93
-87
-71
1
98
81
96
71
118
97.1%
377
YoY
-
-
-
-
-
-
-99.1%
-
-
-
-
20.4%
-739.0%
Operating profit margin
3.3%
3.5%
11.6%
-
-
-
0.2%
14.7%
10.6%
12.7%
9.5%
17.1%
12.1%
Takashimaya Vietnam
35
7
33
47
5
22
44
70
96
-19
-168
12
-
77
YoY
-
-
-
-
-85.7%
214.3%
33.3%
48.9%
-
-
-
-82.9%
-45.4%
Operating profit margin
7.5%
1.5%
7.0%
7.9%
1.3%
6.9%
10.1%
11.7%
18.8%
-
-
2.6%
4.6%
Other, adjustments
-331
-618
-436
-571
-1,102
-683
-255
-631
-224
-557
233
-402
-
-1,201
Source: Shared Research based on company data Note: From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company. Note: FY02/22 estimates are based on previous forecast figures.
Department Store segment: quarterly performance (parent company)
Parent
FY02/20
FY02/21
FY02/22
FY02/22
Cumulative (JPYmn)
Q1
Q1–Q2
Q1–Q3
Q1–Q4
Q1
Q1–Q2
Q1–Q3
Q1–Q4
Q1
Q1–Q2
Q1–Q3
Q1–Q4
% of Est.
FY Est.
Operating revenue
176,677
356,515
532,988
722,236
83,593
230,649
377,559
540,789
129,970
276,090
429,830
611,782
92.5%
661,077
YoY
0.5%
1.2%
1.2%
-1.0%
-52.7%
-35.3%
-29.2%
-25.1%
55.5%
19.7%
13.8%
13.1%
13.9%
Sales
173,097
349,272
522,150
707,618
80,330
223,971
367,482
527,579
126,633
269,317
419,631
597,951
99.3%
602,332
YoY
0.3%
1.1%
1.1%
-1.1%
-53.6%
-35.9%
-29.6%
-25.4%
57.6%
20.2%
14.2%
13.3%
14.2%
Gross profit
41,229
83,207
124,637
167,726
17,279
50,863
84,006
119,632
28,176
60,397
94,669
134,164
97.9%
137,015
YoY
-0.9%
-0.7%
-0.4%
-2.4%
-58.1%
-38.9%
-32.6%
-28.7%
63.1%
18.7%
12.7%
12.1%
14.5%
Gross profit margin
23.8%
23.8%
23.9%
23.7%
21.5%
22.7%
22.9%
22.7%
22.3%
22.4%
22.6%
22.4%
22.7%
SG&A expenses
42,871
87,566
131,051
178,415
28,528
70,094
109,550
153,061
34,957
74,004
113,887
155,754
100.2%
155,454
YoY
3.9%
1.8%
1.4%
0.7%
-33.5%
-20.0%
-16.4%
-14.2%
22.5%
5.6%
4.0%
1.8%
1.6%
SG&A ratio
24.8%
25.1%
25.1%
25.2%
35.5%
31.3%
29.8%
29.0%
27.6%
27.5%
27.1%
26.0%
25.8%
Operating profit
1,938
2,883
4,426
3,928
-7,986
-12,552
-15,459
-20,218
-3,444
-6,833
-9,014
-7,760
-
-4,694
YoY
-46.7%
-35.2%
-27.7%
-54.0%
-
-
-
-
-
-
-
-
-
Operating profit margin
1.1%
0.8%
0.8%
0.6%
-
-
-
-
-
-
-
-
-
Parent
FY02/20
FY02/21
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Operating revenue
176,677
179,838
176,473
189,248
83,593
147,056
146,910
163,230
129,970
146,120
153,740
181,952
YoY
0.5%
1.9%
1.1%
-6.5%
-52.7%
-18.2%
-16.8%
-13.7%
55.5%
-0.6%
4.6%
11.5%
Sales
173,097
176,175
172,878
185,468
80,330
143,641
143,511
160,097
126,633
142,684
150,314
178,320
YoY
0.3%
1.8%
1.1%
-6.7%
-53.6%
-18.5%
-17.0%
-13.7%
57.6%
-0.7%
4.7%
11.4%
Gross profit
41,229
41,978
41,430
43,089
17,279
33,584
33,143
35,626
28,176
32,221
34,272
39,495
YoY
-0.9%
-0.5%
0.2%
-7.8%
-58.1%
-20.0%
-20.0%
-17.3%
63.1%
-4.1%
3.4%
10.9%
Gross profit margin
23.8%
23.8%
24.0%
23.2%
21.5%
23.4%
23.1%
22.3%
22.3%
22.6%
22.8%
22.1%
SG&A expenses
42,871
44,695
43,485
47,364
28,528
41,566
39,456
43,511
34,957
39,047
39,883
41,867
YoY
3.9%
-0.1%
0.6%
-1.3%
-33.5%
-7.0%
-9.3%
-8.1%
22.5%
-6.1%
1.1%
-3.8%
SG&A ratio
24.8%
25.4%
25.2%
25.5%
35.5%
28.9%
27.5%
27.2%
27.6%
27.4%
26.5%
23.5%
Operating profit
1,938
945
1,543
-498
-7,986
-4,566
-2,907
-4,759
-3,444
-3,389
-2,181
1,254
YoY
-46.7%
16.5%
-7.5%
-
-
-
-
-
-
-
-
-
Operating profit margin
1.1%
0.5%
0.9%
-
-
-
-
-
-
-
-
-
Source: Shared Research based on company data Note: FY02/22 estimates are based on previous forecast figures.
Commercial Property Development segment: quarterly performance
Commercial Property Development
FY02/20
FY02/21
FY02/22
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
% of Est.
FY Est.
Operating revenue
11,365
11,162
11,261
11,743
8,397
9,092
10,409
9,083
9,899
10,401
10,357
10,528
78.9%
52,177
YoY
8.2%
6.6%
6.5%
-3.2%
-26.1%
-18.5%
-7.6%
-22.7%
17.9%
14.4%
-0.5%
15.9%
41.1%
Toshin Development
11,043
11,044
11,137
11,372
8,272
10,416
10,559
10,091
9,750
10,125
10,714
10,804
99.5%
41,608
YoY
5.8%
4.7%
0.5%
-3.3%
-25.1%
-5.7%
-5.2%
-11.3%
17.9%
-2.8%
1.5%
7.1%
5.8%
Toshin Development Singapore
2,267
2,167
2,114
2,189
2,087
612
1,826
912
1,951
1,817
1,915
1,693
100.3%
7,357
YoY
-0.2%
-1.5%
-3.5%
-1.7%
-7.9%
-71.8%
-13.6%
-58.3%
-6.5%
196.9%
4.9%
85.6%
35.3%
Operating profit
2,914
2,108
2,505
2,395
2,112
1,126
2,241
388
2,087
-654
4,474
1,372
109.5%
6,647
YoY
10.5%
0.7%
11.0%
-1.1%
-27.5%
-46.6%
-10.5%
-83.8%
-1.2%
-
99.6%
253.6%
13.3%
Operating profit margin
25.6%
18.9%
22.2%
20.4%
25.2%
12.4%
21.5%
4.3%
21.1%
-
43.2%
13.0%
12.7%
Toshin Development
1,981
1,324
1,787
1,589
1,194
941
1,615
838
1,322
881
1,720
1,146
113.6%
4,462
YoY
-2.2%
-16.5%
3.3%
-19.6%
-39.7%
-28.9%
-9.6%
-47.3%
10.7%
-6.4%
6.5%
36.8%
-2.7%
Operating profit margin
17.9%
12.0%
16.0%
14.0%
14.4%
9.0%
15.3%
8.3%
13.6%
8.7%
16.1%
10.6%
10.7%
Toshin Development Singapore
851
721
780
745
757
83
511
-471
583
381
518
164
98.8%
1,666
YoY
33.4%
33.8%
45.8%
54.6%
-11.0%
-88.5%
-34.5%
-
-23.0%
359.0%
1.4%
-
89.3%
Operating profit margin
37.5%
33.3%
36.9%
34.0%
36.3%
13.6%
28.0%
-51.6%
29.9%
21.0%
27.0%
9.7%
22.6%
Source: Shared Research based on company data Note: Effective Q3 FY02/20, the name of the Real Estate segment was changed to the Commercial Property Development segment. Note: FY02/22 estimates are based on previous forecast figures.
Finance segment: quarterly performance
Finance
FY02/20
FY02/21
FY02/22
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
% of Est.
FY Est.
Operating revenue
4,363
4,256
4,383
4,455
4,035
4,068
4,122
4,025
4,244
3,933
4,126
4,212
80.4%
20,553
YoY
6.1%
9.6%
13.3%
10.5%
-7.5%
-4.4%
-6.0%
-9.7%
5.2%
-3.3%
0.1%
4.6%
26.5%
Takashimaya Financial Partners
5,031
5,110
5,242
5,313
4,551
4,944
5,093
4,987
5,031
4,864
5,073
5,177
98.0%
20,553
YoY
4.1%
9.3%
9.8%
8.8%
-9.5%
-3.2%
-2.8%
-6.1%
10.5%
-1.6%
-0.4%
3.8%
5.0%
Operating profit
1,401
1,205
1,271
1,001
1,058
1,048
1,069
1,113
1,274
895
1,141
1,048
102.7%
4,243
YoY
3.1%
-11.3%
-9.1%
-24.8%
-24.5%
-13.0%
-15.9%
11.2%
20.4%
-14.6%
6.7%
-5.8%
-1.0%
Operating profit margin
32.1%
28.3%
29.0%
22.5%
26.2%
25.8%
25.9%
27.7%
30.0%
22.8%
27.7%
24.9%
20.6%
Takashimaya Financial Partners
1,212
1,179
1,163
945
1,063
1,052
1,076
1,097
1,274
895
1,141
1,048
102.7%
4,243
YoY
3.9%
-4.8%
-8.4%
-22.3%
-12.3%
-10.8%
-7.5%
16.1%
19.8%
-14.9%
6.0%
-4.5%
-1.0%
Operating profit margin
24.1%
23.1%
22.2%
17.8%
23.4%
21.3%
21.1%
22.0%
25.3%
18.4%
22.5%
20.2%
20.6%
Source: Shared Research based on company data Note: In Q1 FY02/21, Takashimaya Insurance merged with Takashimaya Credit via an absorption-type merger with Takashimaya Credit as the surviving entity. It subsequently changed its name to Takashimaya Financial Partners Co., Ltd. The figures above have not been retroactively adjusted to reflect this merger. Note: FY02/22 estimates are based on previous forecast figures.
Contract and Design segment: quarterly performance
Contract and Design
FY02/20
FY02/21
FY02/22
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
% of Est.
FY Est.
Operating revenue
6,628
9,741
6,357
10,464
7,258
5,318
2,828
3,675
3,960
4,298
3,510
4,563
82.0%
19,927
YoY
23.8%
42.4%
17.6%
45.5%
9.5%
-45.4%
-55.5%
-64.9%
-45.4%
-19.2%
24.1%
24.2%
4.4%
Takashimaya Space Create
7,285
10,852
8,238
9,991
7,358
5,468
3,136
3,981
4,427
4,940
3,614
4,966
90.1%
19,927
YoY
17.5%
17.6%
5.0%
19.5%
1.0%
-49.6%
-61.9%
-60.2%
-39.8%
-9.7%
15.2%
24.7%
-0.1%
Operating profit
175
583
528
493
115
-236
-409
-450
-319
187
-530
158
YoY
-
21.5%
363.2%
186.6%
-34.3%
-
-
-
-
-
-
-
Operating profit margin
2.6%
6.0%
8.3%
4.7%
1.6%
-
-
-
-
4.4%
-
3.5%
Takashimaya Space Create
173
581
530
471
115
-236
-409
-450
-319
187
-530
158
YoY
-
26.0%
310.9%
137.9%
-33.5%
-
-
-
-
-
-
-
Operating profit margin
2.4%
5.4%
6.4%
4.7%
1.6%
-
-
-
-
3.8%
-
3.2%
Source: Shared Research based on company data Note: In Q1 FY02/21, Takashimaya Space Create merged with Takashimaya Space Create Tohoku via an absorption-type merger with Takashimaya Space Create as the surviving entity. The figures above have not been retroactively adjusted to reflect this merger. Note: FY02/22 estimates are based on previous forecast figures.
For reference: Domestic department store performance by store
Executive summary
Takashimaya Co., Ltd. was founded in 1831 and is the operator of one of the largest department store chains in Japan. It operates 14 domestic stores, including the Yokohama, Osaka, Kyoto, and Shinjuku stores. As a well-established department store, Takashimaya has brand strength, attracting mainly affluent customers for many years. The building that houses the Nihombashi store was given the status of a historic building and later designated as one of Japan’s Important Cultural Properties. It is also rolling out its business overseas, with department stores in Singapore (opened in 1993), Shanghai, China (2012), Ho Chi Minh City, Vietnam (2016), and Bangkok, Thailand (2018).
In FY02/22, Takashimaya reported operating revenue of JPY761.1bn (+11.8% YoY) and operating profit of JPY4.1bn (versus a loss of JPY13.5bn in FY02/21). The Department Store segment represents the company's core business (85.2% of FY02/22 operating revenue; operating loss of JPY6.6bn). The Commercial Property Development business (5.4%; operating profit of JPY7.3bn) is involved in the development and operation of shopping centers, and real estate development overseas. The Finance business (2.2%; operating profit of JPY4.4bn) mainly handles the credit card business, and the Contract and Design business (2.1%; operating loss of JPY504mn) deals with interior decorating for the company properties as well as for hotels and luxury brand boutiques.
In the Department Store business, inbound demand has been the growth driver in recent years. Inbound sales to tourists visiting Japan accounted for just under 20% of sales at its stores in Osaka and Shinjuku, which typically generate large amounts of tax-free sales to foreign tourists, but the COVID-19 pandemic has caused a rapid decline in the number of foreign visitors to Japan. Although Department Store revenue is down during the COVID-19 pandemic, the company has been undertaking a review of its earnings structure, implementing measures such as a reform of the sales floor with respect to apparel (a core product category), improving gross profit margin on product sales, and reducing SG&A expenses through cost structure reforms.
The company is also focusing on its Commercial Property Development business. Because the main source of income is rent from tenants, this segment enjoys relatively stable revenue and has remained profitable even during the COVID-19 pandemic. There is a strong connection to the Department Store business; for example, the Commercial Property Development business was able to boost the drawing power of department stores by bringing in attractive tenants to certain floors that had been experiencing a slump. The Commercial Property Development business is also expanding its portfolio to handle the development and management of condominiums and office buildings in Japan, rather than only commercial property development.
The company has positioned the Finance business to be highly compatible with the Department Store business, and intends to strengthen its relationships with customers through offering financial products that cater to customers’ important life events. Overseas, the company aims to expand department store sales in China, Vietnam, and Thailand, and targets medium- to long-term growth through real estate development in surrounding regions.
Trends and outlook
In FY02/22, Takashimaya reported operating revenue of JPY761.1bn (+11.8% YoY), operating profit of JPY4.1bn (versus a loss of JPY13.5bn in FY02/21), and net income attributable to owners of the parent of JPY5.4bn (versus a net loss of JPY34.0bn). Revenue in the mainstay Department Store business improved, but failed to return to the levels prior to the pandemic as consumer sentiment deteriorated due to a wave of COVID-19 cases and the resulting state of emergency declarations. Operating profit turned into the black. On the back of higher operating revenue, gross profit increased to JPY167.7bn (+12.4% YoY). SG&A expenses were kept under control at JPY229.0bn (+2.8% YoY) owing to cost-savings of about JPY9.6bn arising from structural reforms at the company's domestic department stores.
Company forecast for FY02/23 calls for operating revenue of JPY431.5bn (-43.3% YoY), operating profit of JPY17.5bn (+325.7% YoY), recurring profit of JPY16.0bn (+131.8% YoY), and net income attributable to owners of the parent of JPY10.0bn (+86.6% YoY). Although the company expects a decline in operating revenue due to the adoption of the Accounting Standard for Revenue Recognition from FY02/23, it forecasts total operating revenue (operating revenue based on previous accounting standards) of JPY831.5bn (+9.2% YoY). Total operating revenue and operating profit are expected to increase YoY owing to the absence of COVID-19-related store closures seen in FY02/22 and reduced impact from the pandemic in general.
The company released its "Three-year plan (FY2021–23)" in April 2021. FY02/24 targets include operating revenue of JPY850.0bn and operating profit of JPY30.0bn. Although these targets do not assume a full recovery in inbound tourism to Japan, and total operating revenue will fall short of the JPY919.1bn figure booked in FY02/20, the company’s target of JPY30bn for operating profit in FY02/24 exceeds the JPY25.6bn operating profit level reported for FY02/20, the bullish outlook here being based primarily on the cost savings expected from its structural reform efforts. For the domestic Department Store business, the company targets operating profit of JPY9.0bn in FY02/24 and for the overseas Department Store business targets operating profit of JPY4.7bn. For its Commercial Property Development business, the company targets operating profit of JPY10.0bn in FY02/24 and for its Finance business targets operating profit of JPY5.5bn. The company intends to boost annual e-commerce sales from JPY18.6bn in FY02/20 to JPY50.0bn by FY02/24. In the medium-term, it plans returns to shareholders totaling JPY40bn.
Strengths and weaknesses
Shared Research believes the company’s strengths are 1) strong support from core senior affluent customers, 2) strength of the store network and group’s development capability, and 3) strong presence in Asia. Weaknesses include its 1) falling customer count caused by demographic change, 2) business model with continual capex requirement, and 3) characteristic business practices including itaku hanbai (consignment sales) (see Strengths and weaknesses section for details).
Key financial data
Notes: Figures may differ from company materials due to differences in rounding methods; ROA is based on recurring profit.
From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company.
From FY02/20, IFRS 16 “Leases” is adopted for overseas subsidiaries.
The company conducted a one-for-two reverse stock split of common shares effective September 1, 2018. Per-share indicators are retroactively adjusted to reflect this.
From FY02/23, the company has applied the Accounting Standard for Revenue Recognition (Accounting Standard Board of Japan Statement No. 29, March 31, 2020). For FY02/23, it forecasts total operating revenue (operating revenue based on previous accounting standards) of JPY831.5bn (+9.2% YoY).
Recent updates
Monthly sales report for April 2022
Takashimaya Co., Ltd. released monthly sales report for April 2022.
Revisions to full-year earnings forecast
On April 7, 2022, Takashimaya Co., Ltd. announced revisions to its full-year earnings forecast.
Revised forecast for full-year FY02/22
Reasons for forecast revision
The downward revision to the company's operating profit estimate reflected a shortfall in store sales in January and February, which came in roughly 7% (JPY7.0bn) lower than expected as consumer spending slowed following the implementation of priority preventive measures after the start of 2022.
The upward revision to its forecast for net income attributable to owners of the parent reflected a JPY4.4bn improvement in deferred income taxes. This was due to an increase in deferred tax assets as the company's business adaptation plan was approved under the revised Industrial Competitiveness Enhancement Act.
The company upwardly revised its recurring profit forecast as non-operating income increased JPY2.7bn due to employment adjustment subsidy and other subsidies associated with temporary store closures.
Trends and outlook
Quarterly trends and results
Note: From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company; includes some figures based on Shared Research estimates.
Note: From FY02/20, IFRS 16 “Leases” is adopted for overseas subsidiaries.
Note: From FY02/20, Takashimaya Insurance was transferred from the Other segment to the Finance segment (data in table retroactively adjusted).
Note: Effective Q3 FY02/20, the name of the Real Estate segment was changed to the Commercial Property Development segment.
Note: FY02/22 estimates are based on previous forecast figures.
Note: From FY02/19, sales from consignment transaction by overseas subsidiaries are reported on a net basis, the portion that represents income to the company.
Note: FY02/22 estimates are based on previous forecast figures.
Note: FY02/22 estimates are based on previous forecast figures.
Note: Effective Q3 FY02/20, the name of the Real Estate segment was changed to the Commercial Property Development segment.
Note: FY02/22 estimates are based on previous forecast figures.
Note: In Q1 FY02/21, Takashimaya Insurance merged with Takashimaya Credit via an absorption-type merger with Takashimaya Credit as the surviving entity. It subsequently changed its name to Takashimaya Financial Partners Co., Ltd. The figures above have not been retroactively adjusted to reflect this merger.
Note: FY02/22 estimates are based on previous forecast figures.
Note: In Q1 FY02/21, Takashimaya Space Create merged with Takashimaya Space Create Tohoku via an absorption-type merger with Takashimaya Space Create as the surviving entity. The figures above have not been retroactively adjusted to reflect this merger.
Note: FY02/22 estimates are based on previous forecast figures.
For reference: Domestic department store performance by store