Isetan Mitsukoshi Holdings (3099): FY2025 Results Summary — Record Operating Profit for a Third Consecutive Year

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Isetan Mitsukoshi Holdings reported results for the fiscal year ended March 31, 2026 (FY2025) at its financial results explanation meeting held on May 13, 2026. Operating profit reached 80.0 billion yen, a record high for the third consecutive year, and profit reached 76.0 billion yen, significantly surpassing the previous record high. Strong growth in domestic customer sales offset the decline in overseas customer sales caused by external factors, resulting in gross sales for the year remaining flat year on year, while SG&A expenses decreased by 4.6 billion yen from the previous fiscal year through continued optimization of cost allocation.

Consolidated Results (Full-Year Actual)

Gross sales handled, which the company now lists at the top of its materials and which includes the amount handled by tenants under fixed lease in department stores, came to 1,348.0 billion yen (100.1% of the prior year). The fourth quarter performed exceptionally well: operating profit for the fourth quarter reached ¥21.9 billion, up ¥5.5 billion year-on-year, significantly surpassing the previous record high. Full-year profit attributable to owners of parent reached 76.0 billion yen (144.1% year on year), owing in part to a sale of shares in affiliated companies and the review of tax-effect ranking in the fourth quarter. The company notes profit was 65.6 billion yen excluding special factors (excluding 10.4 billion yen resulting from a change in tax effect rank driven by profit growth). ROE was 12.5% (10.8% excluding special factors).

Item	FY2025 Results (0.1 billions of yen)	YoY	YoY Difference
Gross sales handled*	13,480	100.1%	+17
Gross sales	12,995	99.7%	(41)
Net sales	5,456	98.2%	(98)
Gross profit	3,367	99.7%	(9)
SG&A expenses	2,567	98.2%	(46)
Operating profit	800	104.9%	+37
Ordinary profit	865	98.3%	(15)
Profit attributable to owners of parent	760	144.1%	+232

* Including the amount handled by tenants under fixed lease in department stores.

Domestic Department Store Sales

Total domestic department store gross sales were 11,501 (0.1 billions of yen), 99.8% of the prior year. Domestic customer sales grew to 10,019 (102.7% year on year, a difference of +263), while overseas customer sales were 1,481 (84.0% year on year, a difference of (281)). Overseas customer sales, which had been significantly down in the first half of the fiscal year, were on a recovery track toward the end of FY2025. By store, the Isetan Shinjuku Main Store posted gross sales of 4,249 (100.9% year on year), setting a new record after surpassing the 400 billion yen mark for the first time in the previous fiscal year, and the Mitsukoshi Nihombashi Main Store posted 1,690 (104.6% year on year).

Segment Results

All segments exceeded the previous year’s operating profit. In the department store business, gross sales remained at the same level as the previous year, but profit increased due to scientific control of SG&A expenses. In the credit & finance business, the number of accounts is in an uptrend due to the introduction of MICARD BASIC, with continued optimization of expenses. In the real estate business, in addition to increased rental income from leased properties, the construction and interior business grew, leading to higher profit.

Segment	Gross Sales (0.1 billions of yen)	YoY	Operating Profit	OP YoY Difference
Department store business	12,051	99.6%	655	+9
Credit & finance business / Customer organization management business	380	103.0%	63	+5
Real estate business	271	92.0%	46	+10
Other businesses*	291	107.2%	34	+10
Total	12,995	99.7%	800	+37

* Operating profit in the other businesses segment includes an adjustment.

FY2026 Forecast

For the fiscal year ending March 31, 2027 (FY2026), the company plans operating profit of 81.5 billion yen, a record high for the fourth consecutive year, with an eye on achieving operating profit of 85.0 billion yen in FY2027. It plans steady expansion in domestic customer sales building on its identified customer base, while also increasing overseas customer sales, which are showing signs of recovery. Profit is planned to decline due to the absence of the gain on the sale of shares of affiliated companies and the tax effect recorded in the previous fiscal year, with profit of ¥61.5 billion and ROE projected at 10.1%.

Item	FY2026 Full-Year Plan (0.1 billions of yen)	YoY	YoY Difference
Gross sales handled*	13,950	103.5%	+470
Gross sales	13,500	103.9%	+504
Net sales	5,600	102.6%	+143
Gross profit	3,445	102.3%	+77
SG&A expenses	2,630	102.5%	+62
Operating profit	815	101.8%	+14
Ordinary profit	800	92.4%	(65)
Profit attributable to owners of parent	615	80.8%	(145)

* Including the amount handled by tenants under fixed lease in department stores.

Shareholder Returns

In FY2025 the company paid an annual dividend of ¥70 per share, and for FY2026 it plans ¥80 per share, at which DOE will be approximately 4.5%. The shareholder return policy under the current medium-term management plan comprises a total payout ratio of 70% or more as a total for Phase I (FY2025-FY2027), progressive dividends to be continued throughout the current medium-term management plan (FY2025-FY2030), and a newly set DOE of 5% or higher from FY2027 (through FY2030). Of the 30.0 billion yen in share buybacks authorization announced on February 6, 3.0 billion yen was repurchased in FY2025, and 27.0 billion yen is scheduled to be acquired in FY2026. Shareholder returns in FY2025 totaled 54.5 billion yen (dividend 21.5 billion yen and acquisition of treasury stock 33.0 billion yen), with a FY2026 forecast at the 55.0 billion yen level.

Medium-Term Plan Progress

FY2025 was the first year of Phase I (FY2025-FY2027) of the current medium-term management plan, which targets operating profit of 85.0 billion yen in FY2027. The number of identified customers reached 8.35 million in FY2025 (110% year on year), with a plan of 9.00 million for FY2026 and 9.50 million for FY2027, and an 11 million person level for FY2030. Identified customer gross sales were 678.6 billion yen in FY2025 (106% versus FY2024) and are planned at 696.0 billion yen for FY2026 (103%). Gross sales from customers purchasing more than 3 million yen per year across the Group were 237.9 billion yen (114%) and are planned at 252.0 billion yen (106%). The company states it will aim for consolidated operating profit exceeding 100 billion yen through intra-group coordination activities centered on department stores.

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