Isetan Mitsukoshi records first-quarter profit slump of 43%

By

Benjamin Fitzgerald

Published
Aug 1, 2016

Isetan Mitsukoshi said on Friday net profit for the first-quarter of its fiscal year fell 43.5 percent, on the back of rising costs and fewer Chinese visitors to Japan buying luxury goods.

Japan’s largest department store operator reported a net profit for the three months ended June 30 of 4.95 billion yen ($45.87 million) at average exchange rates for the period.

The group said operating profit declined 47.7 percent to 6.06 billion yen, while first-quarter net sales dipped 4.9 percent on the year to 294.65 billion yen.

Guidance for the fiscal year ending March 31, 2017 remained unstuck. ​Isetan Mitsukoshi expects net profit to dip 1.9 percent for the 12-month period to 26 billion yen at current exchange rates.

It predicts its operating profit will lift by 11.8 percent to 37 billion yen. Sales are expected rise 5.7 percent year-on-year to 1.36 trillion yen.

As previously reported by FashionMag, the Japanese retailer hopes to launch a Parisian store dedicated to Japanese lifestyle by the end of the year.