Takashimaya profits soar in Q1

Takashimaya announced on June 26th that net profit for the first quarter of the fiscal year surged 44.7%, as the company saw revenues increase slightly and “endeavoured to cater to the increasingly diverse array of customer needs and create sales spaces that deliver new value.”

The Japanese department store operator reported a net profit of 5.45 billion yen (US$48.7 million) for the three months ended May 31, compared to the same period last year, while operating profit lifted 5.1% to 8.09 billion yen.

The retailer said first-quarter sales grew 2.8%, hitting 225.48 billion yen (US$2.02 billion).

Takashimaya credited its rejigged operating strategy with a focus on omni-channel, and an improved consumer sentiment in Japan for the financial result.

“We made efforts to harmonize the product lineup between stores and the online store, develop distinctive merchandise, provide a streaming service aimed at enhancing convenience for customers and in-store tablets to introduce customers to the online store,” the retailer said in a statement. “These and various other measures contributed to strong sales.”

During the quarter, the department store’s Shinjuku location opened a specific level for ‘wellbeing’, boasting shops and a café with healthy items, as well as studios and a gym.

Takashimaya said it expects net profit to life 3% to 21.5 billion yen (US$191.1 million). The firm forecast 12-month operating profits to increase 2.9% to 35 billion yen (US$311.2 million) and a yearly sales growth of 2.% to 943 billion yen (US$8.38 billion).