As for the final accounts of Takashimaya (8233), operating revenue decreased, and operating income increased and achieved the target by reducing SG& A expenses.
As for the interim financial results of Takashimaya (8233), operating revenue and operating income increased due to the strong performance of domestic department stores and the contribution of Takashimaya Vietnam.
◎Points of Consolidated Performance
▽Consolidated Performance
・Operating revenue increased 2.2% year-on-year to 453 billion yen, and operating income rose 0.8% to 13.9 billion yen.
・Operating revenue improved and exceeded target owing to the strong performance of domestic department stores and the contribution of Takashimaya Vietnam.
・Operating income, ordinary income, and net income rose and achieved target primarily because of increased revenue.
▽ Performance of the Domestic Department Store Segment
・Operating revenue increased and exceeded target, supported by the strong inbound demand and firm domestic consumption.
・Operating income, ordinary income, and net income rose and achieved target thanks to increased revenue.
▽Performance of Major Subsidiaries (Domestic)
・Toshin Development saw higher revenue but lower profit. This result was due to a decline in income from tenants following renovation work, which offset nominal revenue increase factors associated with the reform of the rental system of Shinjuku Store.
・Takashimaya Credit saw higher revenue but lower profit because of an increase in card renewal costs.
・Takashimaya Space Create posted a decline in both revenue and profit, largely reflecting a reactionary decline following last year’s major orders.
▽Performance of Major Subsidiaries (Abroad)
・The Singapore business saw lower revenue and profit amid an unfavorable exchange rate and the slowdown of the Singapore economy.
・Shanghai Takashimaya maintained its revenue growth thanks to the success of its sales strategy.
・Takashimaya Vietnam’s performance was largely as projected.
◎Takashimaya Group's growth strategy and progress
▽FY2021 Targets
・Consolidated operating income of 50 billion yen, ROE of higher than 7%, and ROA of 4.6%.
・Under the Machi-dukuri Strategy, expand department stores, domestic group, and overseas business segments.
・Under the Group Reform Project, radically reform management efficiency.
▽Domestic Department Store Business
・Realize next-generation commercial facilities in each neighborhood through the Machi-dukuri Strategy and Group Reform Project.
・Efforts to capture inbound demand were as planned.
・Rigorously cultivate wealthy clientele market by issuing new card.
・Focusing on high-margin apparel and sundries, develop well-curated sales spaces and strengthen sales capacity.
・Regarding low-margin experiential products (including “koto” products), explore alliances and consider bringing in specialty store tenants.
・Efforts to improve product margin were successful, offsetting a deterioration in general conditions.
▽Overseas Businesses
・Singapore Takashimaya to serve as a hub for business expansion in Asia.
・The store opened in Ho Chi Minh City, Vietnam, in July 2016. Since its opening, performance has been as projected, and the store is set to achieve early profitability.
・A portion of the property rights for A & B Tower in the area were acquired in March this year. We will further advance the Machi-dukuri Strategy in the city.
・Siam Takashimaya will open in Bangkok in autumn 2018.
◎Projections for FY ending February 2018
・Operating revenue will be 951 billion yen, 3.0% up year-on-year, and operating income will be 36 billion yen, 5.9% up year-on-year.
・Revenue is projected to grow significantly and its projection has been revised upward owing to increased revenue from domestic department stores, the contribution of new businesses such as Takashimaya Vietnam, and condominium sales, etc.
・Projections for operating income, ordinary income, and net income have been upwardly revised thanks to increased revenue and savings in SG&A expenses.
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