Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Translation
Company name: Takashimaya Company, Limited Stock exchange listing: Tokyo
Stock code: 8233 URL https://www.takashimaya.co.jp Representative: President Yoshio Murata
October 14, 2025
Inquiries:
General Manager, Public and Investor Relations Office
Mariko Oe TEL (03)3211-4111
Scheduled date to file Interim Securities Report: October 14, 2025
Scheduled date to commence dividend payments: November 25, 2025 Preparation of supplementary material on interim financial results: Yes
Holding of interim financial results meeting: Yes (for analysts)
(Amounts less than one million yen are rounded down)
Interim Consolidated financial results for the six months ended August 31, 2025 (from March 1, 2025 to August 31, 2025)
Consolidated operating results (cumulative) Percentages indicate year-on-year changes
Total operating revenue
Operating revenue
Operating profit
Business profit
Ordinary profit
Profit attributable to owners of parent
Six months ended August 31, 2025
Six months ended August 31, 2024
Millions of yen
487,186
506,714
%
(3.9)
13.2
Millions of yen
235,362
243,431
%
(3.3)
10.1
Millions of yen
23,653
28,760
%
(17.8)
38.2
Millions of yen
25,153
31,528
%
(20.2)
41.7
Millions of yen
22,010
30,238
%
(27.2)
36.3
Millions of yen
21,219
19,078
%
11.2
27.5
Earnings per share
Diluted earnings per share
Yen
Yen
Six months ended August 31, 2025
70.14
59.15
Six months ended August 31, 2024
60.47
51.40
Note 1: Comprehensive income For the six months ended August 31, 2025 17,393 million yen [(31.3)%]
For the six months ended August 31, 2024 25,300 million yen [4.3%]
Note 2: Total operating revenue was calculated using the previous standard before the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.
Note 3: The term “Business profit” is the Company’s original indicator, calculated by adding share of profit of entities accounted for using equity method and dividend income to operating profit.
Note 4: The Company has conducted a 2-for-1 stock split of shares of common stock on September 1, 2024. Earnings per share and diluted earnings per share are calculated assuming that this stock split occurred at the beginning of the previous consolidated fiscal year.
Consolidated financial position
Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen
%
As of August 31, 2025
1,299,285
508,368
37.1
As of February 28, 2025
1,296,012
500,348
36.5
Reference: Equity
As of August 31, 2025
482,400 million yen
2. Cash dividends
As of February 28, 2025
473,048 million yen
Annual dividends per share
1st quarter-end
2nd quarter-end
3rd quarter-end
Fiscal year-end
Total
Yen
Yen
Yen
Yen
Yen
Year ended February 28, 2025
—
23.00
—
13.00
—
Year ending February 28, 2026
—
17.00
—
—
—
Year ending February 28, 2026 (Forecast)
—
—
—
17.00
34.00
Note 1: Revisions to the forecast of cash dividends most recently announced: Yes
Note 2: The Company conducted a 2-for-1 stock split of its common shares on September 1, 2024. The amounts shown for the dividends per share for the second quarter-end of the fiscal year ended February 28, 2025 are amounts based on conditions before the stock split. For the year-end dividend per share for the fiscal year ended February 28, 2025, the amount that takes into account the effect of this stock split is shown. Accordingly, “–” is shown for the total annual dividends for the same year.
Forecast of consolidated financial results for the year ending February 28, 2026 (from March 1, 2025 to February 28, 2026)
Percentages indicate year-on-year changes
Total operating revenue
Operating revenue
Operating profit
Business profit
Ordinary profit
Profit attributable to owners of parent
Earnings per share
Full year
Millions of yen
1,015,000
%
(1.7)
Millions of yen
491,400
%
(1.4)
Millions of yen
52,500
%
(8.7)
Millions of yen
57,000
%
(10.0)
Millions of yen
53,000
%
(12.2)
Millions of yen
40,000
%
1.2
Yen
133.94
Note 1: Revisions to the earnings forecasts most recently announced: Yes
Note 2: Total operating revenue was calculated using the previous standard before the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.
Note 3: The term “Business profit” is the Company’s original indicator, calculated by adding share of profit of entities accounted for using equity method and dividend income to operating profit.
Note 4: The Company resolved to purchase and cancel its treasury shares at the meeting of the Board of Directors held on June 30, 2025. The estimated impact of acquisition of own shares and cancellation of treasury stock are taken into account in regard to “Earnings per share” in the forecast for fiscal year ending February 28, 2026.
Notes
Changes in significant subsidiaries during the six months ended August 31, 2025
(changes in specified subsidiaries resulting in the change in scope of consolidation): No
Application of special accounting methods for preparing interim consolidated financial statements: No
Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No
Restatement of prior period financial statements: No
Note: Please refer to 2. Interim Consolidated Financial Statements and Major Notes, (4) Notes to Interim Consolidated Financial Statements [Notes on Changes in Accounting Policies] on page 11.
Number of issued shares (common shares)
As of August 31, 2025
315,566,316 shares
As of February 28, 2025
315,566,316 shares
As of August 31, 2025
16,236,514 shares
As of February 28, 2025
12,194,482 shares
Total number of issued shares at the end of the period (including treasury shares) Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2025
302,527,582 shares
Six months ended August 31, 2024
315,461,463 shares
Note: The Company has conducted a 2-for-1 stock split of shares of common stock on September 1, 2024. Average number of shares are calculated assuming that this stock split occurred at the beginning of the previous consolidated fiscal year.
Interim financial results reports are exempt from interim review conducted by certified public accountants or an audit corporation.
Proper use of earnings forecasts, and other special matters (Cautionary statement regarding forward-looking statements, etc.)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Group and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Group. Actual business and other results may differ substantially due to various factors. Please refer to 1. Qualitative Information about Consolidated Operating Results, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements on page 5 of the attached materials for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.
Table of Contents of the Attachment
Qualitative Information about Interim Consolidated Operating Results 2
Explanation of Operating Results 2
Explanation of Financial Position 4
Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements 5
Interim Consolidated Financial Statements and Major Notes 6
Interim Consolidated Balance Sheets 6
Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income 8
Interim Consolidated Statements of Income 8
Interim Consolidated Statements of Comprehensive Income 9
Interim Consolidated Statements of Cash Flows 10
Notes to Interim Consolidated Financial Statements 11
[Notes on Premise of Going Concern] 11
[Notes on Changes in Accounting Policies] 11
[Changes in Presentation] 11
[Notes on Substantial Changes in the Amount of Shareholders’ Equity] 11
[Changes in Significant Subsidiaries During the Interim Consolidated Period] 11
[Segment Information] 12
[Significant Subsequent Events] 14
Qualitative Information about Interim Consolidated Operating Results
Explanation of Operating Results
Japanese socio-economics during the first six months under review (March 1 to August 31, 2025) remained resilient. For example, real GDP and consumer spending have risen for five consecutive quarters up to the April to June period. Furthermore, real wages increased compared to the same month in the previous year for the first time in seven months in July and the Nikkei Stock Average hit a record high in August. Including the wealth effect, these and other positive signs indicate that consumer sentiment is currently undergoing a gradual recovery. Moreover, the number of foreign visitors to Japan and spending are also progressing at a record pace. That is underpinning the Japanese economy. On the other hand, we continue to be unable to take an optimistic view about how the trade friction triggered by US tariff policies and geopolitical risks in the Middle East and elsewhere will affect finance markets (interest rates, exchange rates and stock prices) and the economy (cost of living, consumption and inbound demand) in the future.
Our earnings for the cumulative first six months under review were consolidated operating revenue of 235,362 million yen (decrease of 3.3% YoY), consolidated operating profit of 23,653 million yen (decrease of 17.8% YoY), consolidated business profit of 25,153 million yen (decrease of 20.2% YoY), consolidated ordinary profit of 22,010 million yen (decrease of 27.2% YoY), and profit attributable to owners of parent of 21,219 million yen (increase of 11.2% YoY).
Segment-specific earnings for each business were as follows.
Operating revenue from the Department Stores in Japan segment was 146,401 million yen (decrease of 6.1% YoY) and operating profit was 9,571 million yen (decrease of 33.6% YoY).
There was a big impact on net sales from the pullback in inbound demand that had expanded in the previous fiscal year due to the weak yen. Accordingly, net sales declined overall. Nevertheless, net sales from customers in Japan remained strong and exceeded sales in the previous fiscal year in an existing store comparison.
As a measure unique to our company, we will further promote efforts in which we collaborate with key business partners focused on our five large stores in the east and west of Japan, one of our strengths, to enhance our product appeal. We will rapidly respond to changes in customer needs by strengthening our merchandise according to regional characteristics and also expanding to small and medium-sized stores. Moreover, we will again enhance our item spaces and self-curated sales spaces and develop new products and services such as unique events focused on lifestyle, culture and sociality. Through these efforts, we will provide one-stop experience value that takes advantage of the strengths of our physical stores.
We made it possible to use the points of various Takashimaya cards in units of one from April. We will now take this opportunity to begin rebranding our card strategy to strengthen our customer base. We will continue to strengthen our efforts to both improve the satisfaction of existing customers and to capture the next-generation of customers based on point usage and card membership status. We also revamped the Takashimaya app in June. We will enhance the appeal of the app as an important customer contact tool. In addition to linking member IDs with our online store and strengthening the rewards function, we will take digital approaches among other efforts. Furthermore, we will take advantage of having outstanding overseas stores, such as in Singapore, to mutually refer customers to our stores in Japan. Through this, we will aim to promote and establish shopping around stores beyond international borders.
The gross margin ratio exceeded the ratio in the previous year at department stores. That was mainly due to a change in the sales composition ratio as a result of net sales from luxury brands and other products with a low-profit ratio being significantly lower than in the previous year especially from inbound customers. We will strengthen sales of clothing products, miscellaneous goods and other fashion items with a high-profit ratio through efforts in collaboration with key business partners. That will lead to an improvement in our essential gross margin ratio.
In terms of SG&A expenses, we continue to allocate expenses to promote human capital management such as by increasing base pay. In addition, we appropriately invested expenses that will lead to an enhancement of our marketing capabilities, including the development of new events, after carefully assessing their effectiveness. On the other hand, we also minimized the increase in expenses from the previous year by promoting efforts to cut costs at the same time. Going forward, we will continue to take additional measures according to the situation such as by further improving the efficiency of our store management structure.
Operating revenue from the Overseas Department Stores segment was 16,093 million yen (decrease of 3.3% YoY) and operating profit was 3,790 million yen (decrease of 3.2% YoY).
Takashimaya Singapore recorded a decrease in revenue and profit. This was due in part to the impact of exchange rates resulting from the strong yen in addition to stagnant consumption and rising costs amid prolonged inflation. We will look to increase net sales from domestic customers and tourists. We will achieve this by promoting efforts to strengthen our customer base in addition to reinforcing our merchandise of fashion-related products, foods and more.
Shanghai Takashimaya recorded a decrease in revenue and a loss. Despite continued efforts to strengthen the store’s revenue base, including soliciting new tenants, results were greatly impacted by the slowdown in consumption due to economic stagnation.
Ho Chi Minh City Takashimaya recorded increased revenue and profit thanks to a strengthening of merchandising such as for children’s merchandise, a growth field, and cosmetics, a highly popular product category among customers, while minimizing the increase in costs. We will continue to reorganize our product categories and brands and enhance our events to elevate our ability to attract customers to the store. That will lead to an increase in net sales.
Siam Takashimaya (Thailand) recorded a decrease in revenue and a loss. This was due in part to the impact of sluggish net sales from domestic customers and tourists because of the Myanmar earthquake that struck in March and rising geopolitical risks. We will continue to promote efforts to both maximize the effect from the sales floor revamp and to reduce costs.
Operating revenue from the Commercial Property Development in Japan segment was 20,616 million yen (increase of 1.2% YoY) and operating profit was 3,419 million yen (decrease of 12.8% YoY).
Despite the impact on rent income from the work to revamp Tamagawa Takashimaya Shopping Center (S.C.), Toshin Development Co., Ltd. recorded an increase in revenue. That was because strengthening sales measures, including those for other facilities, led to an increase in customer traffic and sales (percentage rent and credit card fee income, etc.). On the other hand, profit decreased because of factors including an increase in the expenses involved in facility management such as the outsourcing expenses as a result of rising personnel related expenses and heating and lighting expenses.
The P. food court opened in West Wing Street in April at Tamagawa Takashimaya S.C. where a revamp is underway. Consisting of four restaurants showcasing diverse cultures and styles, this food court produces a new shopping environment that connects sidewalks, spaces and communities. In addition, in May, the Forest Garden and Rose Garden rooftop gardens were certified and registered as Nationally Certified Sustainably Managed Natural Sites* for the second half of the fiscal year 2024 by the Ministry of the Environment. This is the first time that an area operated by our Group has been certified and registered as a Nationally Certified Sustainably Managed Natural Site. We will continue to view the global environment as an important stakeholder. As such, we will contribute to the realization of a sustainable society across our whole group.
*This is the name of areas certified by the Ministry of the Environment as “areas where biodiversity conservation is promoted through the efforts of the private sector.”
Operating revenue from the Overseas Commercial Property Development segment was 7,544 million yen (decrease of 3.6% YoY) and operating profit was 2,683 million yen (decrease of 14.5% YoY).
Toshin Development Singapore Pte. Ltd. recorded a decrease in revenue and profit. That was in part due to the impact on rent income from the increase in vacant lots because of revamping work, a strengthening of human capital investments, and an increase in expenses relating to facility management such as outsourcing expenses.
Our Vietnamese business, which is a growth driver for our group, is progressing steadily. We held the groundbreaking ceremony for the Westlake Square Hanoi development project in the capital, Hanoi, in August. We will construct a mixed-used building with three basement floors and 10 above-ground floors in the first phase of this project. In addition to commercial floors consisting of Takashimaya (department store), which will be making its debut in Hanoi, and specialty stores from the first basement floor to the sixth floor, the seventh to 10th floors will be available as office floors. We have designed the building with the aim of obtaining the highest level of Platinum in the U.S. Green Building Council’s LEED building environmental certification system. We are now engaging in leasing activities and store opening preparations for the opening of the building in the fall of 2027. Going forward, we will continue to hold assets for long durations and improve capital efficiency while controlling the size of our assets by combining investment in core businesses that realize sustainable growth with investment in short-term return business in the Overseas Commercial Property Development segment.
Operating revenue from the Finance segment was 10,056 million yen (increase of 12.0% YoY) and operating profit was 2,688 million yen (increase of 17.3% YoY).
Takashimaya Financial Partners Co., Ltd. recorded increased revenue and profit on higher revenue from fees and annual membership fees due to an increase in transaction volume and new members in the Card business, its revenue pillar.
We will take advantage of the change in the point system in the Card business to promote efforts to further raise our ability to capture new members and to expand transaction volume in department stores and specialty stores and on our electronic commerce website.
We obtained a license to operate as a bank agent with SBI Sumishin Net Bank, Ltd. serving as our affiliated bank in March in our Life Partner business. We then started opening bank accounts and giving information on banking products at financial counters. We will expand the range of products and services we handle at our financial counters by adding new banking products to our securities, insurance, inheritance, trust and other existing products. Through such efforts, we will aim to strengthen our ability to deal with general finance inquiries.
In the Investment and Lending business, we have begun offering corporate loans by leveraging the know-how and corporate network we have cultivated through social lending. We are working to expand this business.
Furthermore, we will expand our business in the independent financial advisor (IFA) market at Vaste Culture & Cie. We will provide high-quality private banking services. That will allow us to simultaneously strengthen our Group’s customer base and increase profits in the Finance segment.
Operating revenue from the Construction & Design segment was 15,592 million yen (increase of 1.1% YoY) and operating profit was 1,530 million yen (increase of 30.0% YoY).
Takashimaya Space Create Co., Ltd. steadily received orders for commercial facilities, mainly large-scale projects such as hotels and luxury brands. Furthermore, strengthening cost management improved our profit ratio. That contributed to an increase in profit. We will build a
platform for stable revenue by continuing to strengthen our ability to conduct sales based on forward-looking proposals that incorporate our sales and design capabilities.
Operating revenue from other businesses was 19,058 million yen (increase of 4.0% YoY) and operating profit was 804 million yen (increase of 2.7% YoY).
The “Others” as a whole recorded increased revenue and profit. Our restaurant business R.T. Corporation Ltd. and our staffing business CENTURY & Co., Ltd. recorded an increase in revenue and profit. We will continue to strengthen our management foundations by promoting efforts to enhance our industry competitiveness in each business.
To realize our Grand Design for the milestone of our 200th anniversary in 2031, our management target for this fiscal year is to “accelerate growth through a surge in independence and co-creation: achieve seamlessness within our group.” We have three strengths: store location characteristics, excellent group companies and a broad customer base. To further enhance these strengths, we will realize a state in which each group business is equidistant from the customer’s perspective. In other words, we will achieve seamlessness. We will create a stress-free and inspiring shopping experience for our customers.
We will promote efforts to realize seamlessness. That will lead to the restructuring of our business portfolio and strengthening of our management foundations to be able to flexibly respond to further changes in the environment. We will then realize sustainable growth.
Explanation of Financial Position
Status of Assets, Liabilities and Net Assets
Total assets as of August 31, 2025 amounted to 1,299,285 million yen, up 3,273 million yen from the end of the previous consolidated fiscal year. This was mainly due to a decrease of 12,747 million yen in cash and deposits, an increase of 24,766 million yen in notes and accounts receivable – trade, and contract assets, a decrease of 9,617 million yen in right-of-use assets due to the impact of foreign currency exchange at overseas subsidiaries, and an increase of 748 million yen in investment securities relating to higher stock prices and growth in financial performance of entities accounted for using equity method.
Liabilities amounted to 790,916 million yen, down 4,747 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 5,449 million yen in interest-bearing debt (bonds and borrowings) and a decrease of 8,939 million yen in lease liabilities due to the impact of foreign currency exchange at overseas subsidiaries.
Net assets amounted to 508,368 million yen, up 8,020 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 21,219 million yen in retained earnings from profit attributable to owners of parent, a decrease of 3,943 million yen in retained earnings due to payment of dividends, a decrease of 4,866 million yen due to purchase of treasury shares, and a decrease of 3,572 million yen in foreign currency translation adjustment at overseas subsidiaries.
As a result, the equity ratio was 37.1% (up 0.6 points from the end of the previous consolidated fiscal year).
Status of Cash Flows
Net cash provided by operating activities was 14,560 million yen, a decrease in inflow (an increase in outflow) of 17,648 million yen from 32,208 million yen provided in the same period of the previous consolidated fiscal year. This was mainly due to an increase of 13,824 million yen in net decrease (increase) in trade receivables and an increase of 4,011 million yen in income taxes paid.
Net cash used in investing activities was 13,487 million yen, a decrease in outflow (an increase in inflow) of 4,465 million yen from 17,953 million yen in net cash used in the same period of the previous consolidated fiscal year. This was mainly due to an increase of 17,459 million yen in proceeds from sale of property, plant and equipment and intangible assets despite an increase of 10,189 million in purchase of property, plant and equipment and intangible assets.
Net cash used in financing activities was 13,496 million yen, an increase of 808 million yen in outflow from 12,687 million yen used in the same period of the previous consolidated fiscal year. This was mainly due to an increase of 6,920 million yen in repayments of long-term borrowings, an increase of 5,132 million yen in net decrease (increase) in cash segregated as deposits for purchase of treasury shares, and an increase of 4,865 million yen in purchase of treasury shares, despite an increase of 17,000 million yen in proceeds from long-term borrowings.
When exchange differences are added to the above cash flows, cash and cash equivalents as of August 31, 2025 amounted to 74,207 million yen, down 14,352 million yen from the end of the previous consolidated fiscal year.
Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
With regard to the Consolidated Earnings Forecasts, we have revised our forecasts for total operating revenue, operating revenue and operating profit as outlined below taking into account factors such as net sales and SG&A expenses trends in the Department Stores in Japan segment and results in the first six months under review in the Finance and Construction & Design segments following the earnings forecast we announced on June 30, 2025.
Consolidated earnings forecasts for the year ending February 28, 2026 (from March 1, 2025 to February 28, 2026)
Total operating revenue
Operating revenue
Operating profit
Business profit
Ordinary profit
Profit attributable to owners of parent
Earnings per share
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Yen
Forecasts announced on June 30
1,020,000
493,000
50,000
57,000
53,000
40,000
134.82
Forecasts revised on October 14
1,015,000
491,400
52,500
57,000
53,000
40,000
133.94
Change (amount)
△5,000
△1,600
2,500
—
—
—
△0.88
Change (%)
△0.5
△0.3
5.0
—
—
—
—
Results for the previous year (Year ended February 28, 2025)
1,032,701
498,491
57,503
63,353
60,396
39,525
126.33
Interim Consolidated Financial Statements and Major Notes
Interim Consolidated Balance Sheets
(Millions of yen)
As of February 28, 2025 As of August 31, 2025
Assets
Current assets
Cash and deposits
90,538
77,791
Notes and accounts receivable - trade, and contract assets
164,398
189,164
Merchandise and finished goods
35,366
35,060
Work in process
290
379
Raw materials and supplies
958
1,028
Other
42,621
47,119
Allowance for doubtful accounts
(671)
(672)
Total current assets
333,501
349,869
Non-current assets
Property, plant and equipment Buildings and structures, net
193,090
191,010
Land
419,861
421,672
Leased assets, net
586
428
Right-of-use assets, net
123,739
115,106
Other, net
22,495
23,816
Total property, plant and equipment
759,774
752,034
Intangible assets
Goodwill
2,736
2,316
Leasehold interests in land
11,696
10,775
Right-of-use assets
6,899
5,914
Other
15,693
17,637
Total intangible assets
37,025
36,644
Investments and other assets
Investment securities
119,967
120,715
Guarantee deposits
23,919
23,914
Retirement benefit asset
2,463
2,904
Other
21,557
15,726
Allowance for doubtful accounts
(2,197)
(2,524)
Total investments and other assets
165,710
160,737
Total non-current assets
962,510
949,415
Total assets
1,296,012
1,299,285
(Millions of yen)
As of February 28, 2025 As of August 31, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade
123,849
125,769
Short-term borrowings
37,672
16,281
Lease liabilities
9,313
9,158
Income taxes payable
7,233
6,533
Contract liabilities
100,744
103,079
Gift certificates
40,328
39,502
Provision for point card certificates
2,181
2,081
Other
94,223
93,774
Total current liabilities
415,546
396,180
Non-current liabilities
Bonds payable
80,113
80,097
Long-term borrowings
83,818
110,674
Lease liabilities
130,558
121,773
Asset retirement obligations
4,991
5,236
Retirement benefit liability
37,974
36,488
Provision for retirement benefits for directors (and other officers)
276
287
Other
42,385
40,178
Total non-current liabilities
380,117
394,735
Total liabilities
795,663
790,916
Net assets
Shareholders' equity
Share capital
66,025
66,025
Capital surplus
37,522
37,522
Retained earnings
335,679
354,199
Treasury shares
(12,530)
(17,397)
Total shareholders' equity
426,695
440,349
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
8,713
9,874
Deferred gains or losses on hedges
5
1
Revaluation reserve for land
3,972
2,463
Foreign currency translation adjustment
30,285
26,712
Remeasurements of defined benefit plans
3,376
2,999
Total accumulated other comprehensive income
46,352
42,051
Non-controlling interests
27,299
25,967
Total net assets
500,348
508,368
Total liabilities and net assets
1,296,012
1,299,285
Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income (Interim Consolidated Statements of Income)
(Millions of yen)
Six months ended August 31, 2024
Six months ended August 31, 2025
Operating revenue
243,431
235,362
Net sales
200,627
191,987
Cost of sales
96,511
91,874
Gross profit
104,115
100,112
Other operating revenue
42,803
43,375
Operating gross profit
146,919
143,487
Selling, general and administrative expenses
Advertising expenses
5,281
5,258
Provision for point card certificates
1,043
990
Provision of allowance for doubtful accounts
298
525
Remuneration, salaries and allowances for directors (and other officers)
31,348
32,200
Retirement benefit expenses
415
189
Rent expenses on real estate
11,552
11,688
Other
68,219
68,980
Total selling, general and administrative expenses
118,158
119,834
Operating profit
28,760
23,653
Non-operating income
Interest income
941
910
Dividend income
437
434
Gain on adjustment of unused certificates
812
1,103
Share of profit of entities accounted for using equity method
2,330
1,066
Foreign exchange gains
883
—
Gain on receipt of donated non-current assets
187
392
Other
270
204
Total non-operating income
5,862
4,111
Non-operating expenses
Interest expenses
3,977
3,835
Foreign exchange losses
—
1,079
Other
407
839
Total non-operating expenses
4,384
5,754
Ordinary profit
30,238
22,010
Extraordinary income
Gain on sale of investment securities
332
—
Gain on forgiveness of lease liabilities
28
—
Gain on sale of non-current assets
76
12,606
Other
5
90
Total extraordinary income
442
12,697
Extraordinary losses
Loss on retirement of non-current assets
904
2,097
Loss on store closings
352
265
Impairment losses
893
368
Other
8
6
Total extraordinary losses
2,159
2,738
Profit before income taxes
28,521
31,968
Income taxes - current
3,996
4,710
Income taxes - deferred
5,242
5,580
Total income taxes
9,239
10,290
Profit
19,282
21,677
Profit attributable to non-controlling interests
203
458
Profit attributable to owners of parent
19,078
21,219
(Interim Consolidated Statements of Comprehensive Income)
(Millions of yen)
Six months ended
Six months ended
August 31, 2024
August 31, 2025
Profit
19,282
21,677
Other comprehensive income
Valuation difference on available-for-sale securities
(1,434)
1,152
Deferred gains or losses on hedges
(15)
(4)
Revaluation reserve for land
—
(264)
Foreign currency translation adjustment
4,411
(3,575)
Remeasurements of defined benefit plans, net of tax
(180)
(364)
Share of other comprehensive income of entities accounted for using 3,236 (1,228)
equity method
Total other comprehensive income
6,017
(4,284)
Comprehensive income
25,300
17,393
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
23,843
18,162
Comprehensive income attributable to non-controlling interests
1,457
(769)
(3) Interim Consolidated Statements of Cash Flows
(Millions of yen)
Six months ended
Six months ended
August 31, 2024
August 31, 2025
Cash flows from operating activities
Profit before income taxes
28,521
31,968
Depreciation
16,452
16,338
Impairment losses
893
368
Amortization of goodwill
171
179
Increase (decrease) in allowance for doubtful accounts
218
328
Increase (decrease) in retirement benefit asset and liability, net
(2,555)
(2,387)
Increase (decrease) in provision for retirement benefits for directors (and (20) 10
other officers)
Increase (decrease) in provision for point card certificates
(51)
(100)
Interest and dividend income
(1,378)
(1,345)
Interest expenses
3,977
3,835
Share of loss (profit) of entities accounted for using equity method
(2,330)
(1,066)
Loss (gain) on sale of non-current assets
(76)
(12,606)
Loss on retirement of non-current assets
904
2,097
Loss (gain) on sale of investment securities
(332)
—
Decrease (increase) in trade receivables
(10,997)
(24,821)
Decrease (increase) in inventories
150
45
Increase (decrease) in trade payables
(1,795)
2,235
Increase (decrease) in deposits received
(1,894)
(409)
Increase (decrease) in accounts payable - other
1,315
1,270
Increase (decrease) in contract liabilities
614
2,583
Other, net
2,279
1,754
Subtotal
34,066
20,279
Interest and dividends received
3,318
3,306
Interest paid
(3,906)
(3,744)
Income taxes refund (paid)
(1,270)
(5,281)
Net cash provided by (used in) operating activities
32,208
14,560
Cash flows from investing activities
Payments into time deposits
(3,453)
(2,124)
Proceeds from withdrawal of time deposits
1,528
390
Purchase of short-term and long-term investment securities
(1,737)
(1,306)
Proceeds from sale and redemption of short-term and long-term investment securities
358
—
Proceeds from liquidation of subsidiaries
—
360
Purchase of property, plant and equipment and intangible assets
(14,435)
(24,625)
Proceeds from sale of property, plant and equipment and intangible assets
86
17,546
Payments for asset retirement obligations
(104)
(87)
Purchase of shares of subsidiaries resulting in change in scope of consolidation
(326)
—
Purchase of shares of subsidiaries and associates
(49)
(1,013)
Net decrease (increase) in short-term loans receivable
(251)
(2,479)
Long-term loan advances
(78)
(86)
Other, net
511
(62)
Net cash provided by (used in) investing activities
(17,953)
(13,487)
Cash flows from financing activities
Proceeds from long-term borrowings
13,000
30,000
Repayments of long-term borrowings
(17,580)
(24,500)
Repayments of lease liabilities
(4,397)
(4,490)
Purchase of treasury shares
(1)
(4,866)
Decrease (increase) in cash segregated as deposits for purchase of treasury shares
—
(5,132)
Dividends paid
(3,154)
(3,943)
Other, net
(554)
(562)
Net cash provided by (used in) financing activities
(12,687)
(13,496)
Effect of exchange rate change on cash and cash equivalents
4,734
(1,928)
Net increase (decrease) in cash and cash equivalents
6,302
(14,352)
Cash and cash equivalents at beginning of period
92,898
88,559
Cash and cash equivalents at end of period
99,201
74,207
Notes to Interim Consolidated Financial Statements
[Notes on Premise of Going Concern] Not applicable.
[Notes on Changes in Accounting Policies]
(Application of the Accounting Standard for Current Income Taxes, etc.)
The Company and its subsidiaries have been applying the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; hereinafter, “Revised Accounting Standard 2022”) from the beginning of the current fiscal year.
Revisions concerning the categories in which current income taxes should be recorded (taxes on other comprehensive income) are subject to the transitional treatment set forth in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment set forth in the proviso of paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter, “Revised Guidance 2022”). The change in the accounting policies has no impact on the interim consolidated financial statements.
With regard to revisions related to changes in the accounting treatment for consolidated financial statements when gains and losses on sale of shares, etc. in subsidiaries resulting from transactions between consolidated subsidiaries are deferred for tax purposes, the Company has applied the Revised Guidance 2022 from the beginning of the current fiscal year. The Company applied the change in accounting policies retrospectively to the consolidated financial statements for the interim of the previous fiscal year and the entire previous fiscal year. The change in the accounting policies had no impact on those prior consolidated financial statements.
[Changes in Presentation]
(Interim Consolidated Statements of Income)
“Gain on receipt of donated non-current assets,” which had been included in “Other” of “Non-operating income” in the previous interim consolidated period (187 million yen for the six months ended August 31, 2024), is presented separately from the fiscal year under review, given its increased financial materiality.
(Interim Consolidated Statements of Cash Flows)
“Payments for asset retirement obligations,” which had been included in “Other” of “Cash flows from investing activities” in the previous interim consolidated period (-104 million yen for the six months ended August 31, 2024), is presented separately from the fiscal year under review, given its increased financial materiality.
[Notes on Substantial Changes in the Amount of Shareholders’ Equity]
Pursuant to a resolution made at the Board of Directors meeting held on June 30, 2025, the Company has been proceeding with the purchase of its treasury shares through market purchases on the Tokyo Stock Exchange during the period from July 1, 2025 to December 30, 2025, with 15,000,000 shares set as the maximum number of shares to be purchased and 15,000 million yen as the maximum purchase amount.
During the six months ended August 31, 2025, the Company purchased 4,042,000 treasury shares for the purchase amount of 4,866 million yen, and the balance of treasury shares as of August 31, 2025 was 17,397 million yen.
[Changes in Significant Subsidiaries During the Interim Consolidated Period]
Significant changes in the scope of consolidation
During the six months ended August 31, 2025, TAKASHIMAYA INTERIOR LIMITED (Construction & Design segment), which was established by the Company’s consolidated subsidiary Takashimaya Space Create Co., Ltd., was included in the scope of consolidation.
Significant changes in the scope application of the equity method Not applicable.
[Segment Information]
Six months ended August 31, 2024 (from March 1, 2024 to August 31, 2024)
Information about amounts of operating revenue and profit by reportable segment
(Millions of yen)
Department Stores in Japan
Overseas Department Stores
Commercial Property Development
In Japan
Overseas Commercial Property
Development
Finance
Construction & Design
Total of Reportable Segments
Others (Note 1)
Total
Adjustments (Note 2)
Consolidated (Note 3)
Operating
revenue:
Outside Customers
155,873
16,634
20,368
7,828
8,982
15,425
225,113
18,318
243,431
—
243,431
Intersegment
8,712
481
5,119
257
2,055
1,748
18,374
7,698
26,073
(26,073)
—
Total
164,585
17,115
25,487
8,085
11,037
17,174
243,487
26,016
269,504
(26,073)
243,431
Segment profit
14,416
3,917
3,923
3,136
2,291
1,177
28,863
783
29,646
(885)
28,760
Notes: 1. The “Others” segment refers to business segments not included in reportable segments, such as the home shopping business, the wholesale business, the advertising and promotion business and restaurant business.
Adjustments to segment profit of (885) million yen consist of (324) million yen in eliminations of intersegment transactions and (561) million yen in depreciation of company-wide assets not allocated to each reportable segment.
Segment profit is adjusted with operating profit in the interim consolidated statements of income.
Information about impairment loss of non-current assets or goodwill, etc. by reportable segment (Significant impairment loss on non-current assets)
An impairment loss of 834 million yen was recorded in the “Department Stores in Japan” segment, and 59 million yen in the “Others” segment.
(Significant change in the amount of goodwill)
In the interim consolidated period under review, Vaste Culture & Cie. has been included in the scope of consolidation. As a result, goodwill of 500 million yen was recognized in the “Finance” segment.
Six months ended August 31, 2025 (from March 1, 2025 to August 31, 2025)
Information about amounts of operating revenue and profit by reportable segment
(Millions of yen)
Department Stores in Japan
Overseas Department Stores
Commercial Property Development
In Japan
Overseas Commercial Property
Development
Finance
Construction & Design
Total of Reportable Segments
Others (Note 1)
Total
Adjustments (Note 2)
Consolidated (Note 3)
Operating
revenue:
Outside Customers
146,401
16,093
20,616
7,544
10,056
15,592
216,304
19,058
235,362
—
235,362
Intersegment
9,381
432
5,123
286
2,121
2,307
19,652
7,847
27,499
(27,499)
—
Total
155,782
16,525
25,739
7,831
12,177
17,900
235,956
26,905
262,862
(27,499)
235,362
Segment profit
9,571
3,790
3,419
2,683
2,688
1,530
23,684
804
24,488
(835)
23,653
Notes: 1. The “Others” segment refers to business segments not included in reportable segments, such as the home shopping business, the wholesale business, the advertising and promotion business and restaurant business.
Adjustments to segment profit of (835) million yen consist of (303) million yen in eliminations of intersegment transactions and (531) million yen in depreciation of company-wide assets not allocated to each reportable segment.
Segment profit is adjusted with operating profit in the interim consolidated statements of income.
Information about impairment loss of non-current assets or goodwill, etc. by reportable segment (Significant impairment loss on non-current assets)
An impairment loss of 173 million yen was recorded in the “Department Stores in Japan” segment, 133 million yen in the “Commercial Property Development in Japan” segment, and 62 million yen in the “Others” segment.
[Significant Subsequent Events] (Termination of Operations of a Store)
The Company passed a resolution at a Board of Directors’ meeting held on October 14, 2025, to terminate operations of the Takashimaya Rakusai Store.
Background Leading to the Termination of Operations
Rakusai Store has continued to operate for over 40 years since its opening in April 1982. Over that time, the Company has worked to strengthen Rakusai Store’s sales capabilities through renovations and collaboration with Takashimaya Kyoto Store and to improve operational efficiency through organizational restructuring. Unfortunately, the store operated at a loss in FY2024 and the Company does not expect it to turn a profit in FY2025 onward either. Furthermore, with more than 40 years having passed since its opening, significant capital investment would be required to continue providing a comfortable shopping environment to customers. Having considered the current local environment surrounding the store, the uncertain consumer environment, and other factors from a medium- to long-term perspective, the Company sees no prospect of recovering such a significant capital investment. Therefore, the Company has resolved to close Rakusai Store on August 3, 2026. In addition, the Company has decided to sell the building and land, its assets, to a business operator that develops condominiums for seniors mainly in the Kinki area. That business operator plans to use the location in the future as a candidate site for condominiums and commercial facilities.
The Company plans to open a satellite shop in a section of the neighboring commercial facility from September 2026 and will continue to collaborate with the Takashimaya Kyoto Store located within the same city.
Overview of the Takashimaya Rakusai Store
(1) Location
2-5-5 Oharano Higashi Sakaiyacho, Nishikyo Ward, Kyoto City, Kyoto
(2) Store manager
Kenichi Handa
(3) Date opened
April 16, 1982
(4) Sales
4,757 million yen *Fiscal year ended February 28, 2025
(5) Sales floor area
8,079 m2*As of February 28, 2025
(6) Number of employees
75 *As of February 28, 2025
Scheduled Date of the Termination of Operations Monday, August 3, 2026
Future Outlook
The impact on consolidated financial results for the fiscal year ending February 28, 2026 and the fiscal year ending February 28, 2027 will be minor. If any matters requiring notification arise, the Company will promptly disclose them.