J. Front Retailing announced on the 8th that its consolidated financial results for the second quarter (March to August) of the fiscal year ending February 2014 showed sales up 22.2% compared to the same quarter last year to 558,693 million yen, operating profit up 95.8% to 17,925 million yen, and ordinary profit up 53.5% to 156,893 million yen, the highest ever for a second quarter since the business merger in September 2007.
The company's core department store business is performing well, with sales at the Matsuzakaya Nagoya store increasing 12% year-on-year thanks to the grand opening of its renovated food floor in June as part of the company's efforts to establish a "new department store model" aimed at innovating its business format. The Daimaru Tokyo store, which expanded its floor space last year, increased sales by 36%, and the Matsuzakaya Ginza store, which held a closing sale at the end of June, increased sales by 82%. Parco, which became a consolidated subsidiary in August last year, also contributed to increased sales, and the sale of all shares in the supermarket business, Peacock Store, to AEON in April, also contributed to increased profits. Excluding the Parco and supermarket businesses, consolidated sales increased 5.1% year-on-year, and consolidated operating profit increased 25.8% year-on-year.
Full-year earnings forecasts have been revised upward to sales of 1.016 trillion yen (up 6.2% from the previous quarter, *3.8% excluding the Parco and supermarket businesses), operating profit of 42.5 billion yen (up 37.7% from the previous quarter, *up 15.0%), and ordinary profit of 40 billion yen (up 24.2%).
Daimaru Matsuzakaya Department Stores' sales were 330.638 billion yen (up 4.9% from the same quarter last year), operating profit of 7.527 billion yen (up 36.5%), and ordinary profit of 6.688 billion yen (up 34.6%). By product category, apparel sales increased 5.7%, personal items increased 9.0%, and miscellaneous goods increased 18.9%, with average customer spending also increasing 6.8%.
Full-year forecasts are sales of 679 billion yen (up 2.8% from the previous year), operating profit of 19.6 billion yen (up 26.8% from the previous year), and ordinary profit of 17.4 billion yen (up 22.6% from the previous year).
