Financial Results for Third Quarter of Fiscal Year Ending February 29, 2024

December 26, 2023

Create and Bring to Life "New Happiness."

Q3 FY2023 Financial Results

  • Sales and profits increased as social and economic activities have further normalized and duty-free sales grew.
  • Progress against the annual forecast was largely in line with the plan.
  • The full-year forecast remains unchanged from the announcement in October.

Following the reorganization on March 1, 2023, real estate has been transferred from PARCO CO., LTD. to J. Front City Development Co., Ltd.

As a result, results have been retroactively adjusted as if the transfer took place at the beginning of the first quarter of the fiscal year ended February 28, 2023.

2/16

(Millions of yen, unless otherwise stated)

Q3 FY2023 Consolidated Results (IFRS)

Both sales and profit increased due to recovery in consumption and sustained growth in duty-free sales.

Operating profit and quarterly profit both increased in 3Q (Sep. to Nov.), mainly due to the transfer of shares in SLH, in addition to an increase in business profit.

Q3 (September - November)

Cumulative Q3 (March -

Fiscal year ending

November)

YoY

YoY

February 29, 2024

Results

Results

Amount

%

Amount

%

Gross sales

278,961

33,624

13.7

819,094

109,626

15.5

Revenue

94,928

7,117

8.1

286,562

29,621

11.5

Gross profit

47,006

4,622

10.9

140,389

15,144

12.1

SGA

36,518

1,164

3.3

109,704

5,118

4.9

Business profit

10,487

3,458

49.2

30,684

10,025

48.5

Other operating income

1,038

600

137.0

2,856

98

3.5

Other operating

533

(72)

(11.9)

2,863

(454)

(13.7)

expenses

Operating profit

10,993

4,131

60.2

30,677

10,577

52.6

Profit attributable to

8,704

4,098

88.9

21,604

6,842

46.3

owners of parent

3/16

Segment Information (IFRS)

(Millions of yen, unless otherwise stated)

Three months

Revenue

Business profit

Operating profit

ended

YoY

YoY

YoY

November 30,

Results

Amount

%

Results

Amount

%

Results

Amount

%

2023

Department Store

56,041

5,713

11.4

6,535

3,456

112.2

6,448

3,752

139.2

SC

14,573

1,314

9.9

2,876

1,079

60.1

2,881

805

38.8

Developer

17,069

2,695

18.8

856

129

17.6

861

178

26.1

Payment and Finance

3,100

(295)

(8.7)

610

(489)

(44.5)

532

(554)

(50.9)

Other

12,648

(1,476)

(10.5)

209

(178)

(45.9)

145

(278)

(65.7)

Adjustments

(8,506)

(836)

－

(601)

(540)

－

123

226

－

Total

94,928

7,117

8.1

10,487

3,458

49.2

10,993

4,131

60.2

Nine months

Revenue

Business profit

Operating profit

ended

YoY

YoY

YoY

November 30,

Results

Amount

%

Results

Amount

%

Results

Amount

%

2023

Department Store

168,428

16,490

10.9

18,213

9,403

106.7

16,555

10,046

154.3

SC

42,576

2,948

7.4

7,737

1,795

30.2

8,654

1,567

22.1

Developer

50,836

10,354

25.6

2,844

704

32.9

3,089

769

33.2

Payment and Finance

9,834

125

1.3

2,175

(756)

(25.8)

2,035

(905)

(30.8)

Other

39,947

(855)

(2.1)

890

(147)

(14.2)

1,163

(30)

(2.5)

Adjustments

(25,059)

559

－

(1,176)

(974)

－

(820)

(869)

－

Total

286,562

29,621

11.5

30,684

10,025

48.5

30,677

10,577

52.6

4/16

Segment Performance (1) Department Store Business (IFRS)

Sales increased, mainly due to the success of strategies and measures to respond to the strong affluent market, and growth in gaisho sales and duty- free sales, which continued from the first half of the fiscal year.

Both business profit and operating profit improved significantly despite an increase in expenses such as costs proportional to sales and labor costs.

(Millions of yen, unless otherwise stated)

Fiscal year ending

Q3 (September - November)

Cumulative Q3 (March - November)

February 29, 2024

Results

YoY

Results

YoY

Amount

％

Amount

％

Gross sales

180,988

21,995

13.8

530,275

66,042

14.2

56,041

5,713

11.4

168,428

16,490

10.9

Revenue

Gross profit

37,219

4,344

13.2

110,032

13,016

13.4

SGA

30,683

888

3.0

91,819

3,614

4.1

6,535

3,456

112.2

18,213

9,403

106.7

Business profit

Operating profit

6,448

3,752

139.2

16,555

10,046

154.3

5/16

Daimaru Matsuzakaya Department Stores Major Store Sales

Q3 (Sep-Nov) comparable store sales increased 6.0% over FY2018, continuing the strong performance of the first half.

Flagship store sales, excluding terminal stores, turned positive from Q2 onward compared to FY2018.

(%)

Fiscal year ending

YoY

vs. FY2018

February 29, 2024

Q1

Q2

Q3

1Q

2Q

3Q

Shinsaibashi

34.4

35.3

39.7

(3.4)

14.4

24.2

20.5

21.9

10.3

(17.7)

(15.3)

(16.5)

Umeda

35.7

28.9

18.7

(2.6)

(5.5)

(1.9)

Tokyo

Kyoto

15.6

15.1

16.2

(4.2)

1.9

8.2

Kobe

8.9

9.6

8.5

10.1

19.5

17.9

Sapporo

16.4

16.9

18.7

4.3

6.8

18.6

Nagoya

10.7

8.7

7.3

4.7

4.7

8.8

Total directly managed

16.8

16.4

14.7

(3.1)

1.1

6.0

stores (comparable stores)*

*FY2018 comparisons exclude Shimonoseki store.

6/16

Daimaru Matsuzakaya Department Stores Duty-free sales

Sales have recovered rapidly since the 2Q (Jun-Aug), and in the 3Q (Sep to Nov) sales reached a record high, increasing approximately 33% over FY2019.

Sales composition by region shows growth in Hong Kong, Taiwan, South Korea, and other countries compared to FY2019. A further increase of visitors to Japan is expected, especially from mainland China and Southeast Asia.

(Millions of yen)

Sales compared to the pre-COVID-19 period

Sales comparison by region (Total 100)

(FY2018-2019)

20,000

17,500

Q3

15,000

FY2023

12,500

10,000

7,500

5,000

FY2019

2,500

0

Q4 2022

Q1

2023

Q2

2023

Q3

2023

0

20

40

60

80

100

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Mainland China

Hong Kong

Taiwan

FY2022-2023

FY2018-2019

S. Korea

Thailand

Singapore

Malaysia

Other regions

*FY2018 ratios exclude Shimonoseki store result.

7/16

Daimaru Matsuzakaya Department Stores SGA

The year-on-year increase was mainly due to personnel expenses and an increase in overhead expenses resulting from higher sales.

Excluding special factors (retirement benefit expenses of -4.1 billion yen), the actual increase/decrease compared to FY2019 is approximately -1.8 billion yen.

(Millions of yen, unless otherwise stated)

Item

Three months ended

May 31, 2023

YoY

vs.

FY2019

Major reasons for YoY changes

Personnel expenses

Advertising expenses

Packing and transportation costs

Depreciation

Operational costs

Other

Total SGA

7,517

356

5,383

2,565

64

(395)

288

(87)

(199)

5,190

(236)

(553)

2,953

130

29

9,256

653

(1,979)

27,772

880

2,287

【Personnel expenses】

・Living allowance

＋140

・Bonus

＋100

【Advertising expenses】

・Advertising and sales promotion

＋60

【Other】

・Costs proportional to sale

＋330

・Utility expenses

(170)

・Computer expenses

＋140

・Outsourcing expenses

＋130

※Real increase/decrease

(1,800)

8/16

Segment Performance (2) SC Business (IFRS)

Increase in sales based on strategic remodeling at core stores, promotion effects such as integrated plans for all stores, and an increase in visits by tourists from overseas, etc.

Both business profit and operating profit increased due to the effect of higher sales and curbing the cost of sales, including strong promotional events and lower utilities costs.

(Millions of yen, unless otherwise stated)

Fiscal year ending

Q3 (September - November)

Cumulative Q3 (March - November)

YoY

YoY

February 29, 2024

Results

％

Results

％

Amount

Amount

Gross sales

74,246

11,177

17.7

215,162

31,939

17.4

14,573

1,314

9.9

42,576

2,948

7.4

Revenue

Gross profit

5,194

1,340

34.7

14,498

2,569

21.5

SGA

2,317

260

12.6

6,760

774

12.9

2,876

1,079

60.1

7,737

1,795

30.2

Business profit

Operating profit

2,881

805

38.8

8,654

1,567

22.1

9/16

PARCO Major Store Tenant Transaction Volume

Tenant transaction volume improved for both total store volume and comparable store volume. Shibuya PARCO and Shinsaibashi PARCO continued to perform well.

Total comparable store transaction volume for the Q3 (Sep-Nov) recovered to -4.0% vs. FY2018.

（%）

Fiscal year ending

YoY

vs. FY2018

February 29, 2024

Q1

Q2

Q3

Q1

Q2

Q3

Sapporo PARCO

34.8

51.1

27.9

(11.3)

0.3

3.8

Urawa PARCO

9.2

12.4

9.1

4.6

10.8

6.6

Ikebukuro PARCO

18.0

31.3

13.3

(15.1)

(6.7)

(12.5)

Shibuya PARCO

62.6

65.0

66.2

－

－

－

Chofu PARCO

9.1

9.8

9.6

1.7

6.0

4.0

Nagoya PARCO

8.5

13.9

23.5

(18.5)

(11.7)

(2.3)

Shinsaibashi PARCO

52.7

61.0

46.9

－

－

－

Fukuoka PARCO

26.1

33.0

23.8

4.0

7.3

11.2

Total stores

15.6

20.7

17.8

9.1

17.1

18.9

Total comparable stores*

20.4

25.5

22.2

(9.1)

(3.4)

(4.0)

*Comparable stores: Excludes Tsudanuma PARCO for year-on-year comparisons and Shibuya PARCO, Shinsaibashi PARCO,

Kinshicho PARCO, Utsunomiya PARCO, Kumamoto PARCO and Tsudanuma PARCO for FY2018 comparisons.

10/16

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J.FRONT Retailing Co. Ltd. published this content on 26 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 December 2023 06:11:37 UTC.