J. Front Retailing shares fall following lowered profit forecast

J. Front Retailing, the operator of Daimaru Matsuzakaya and Parco, reported a decline in interim results for the period ending February 2027. The company saw revenue decrease by 2.8% to 213.8 billion yen, while operating profit fell 10.5% to 26.8 billion yen.

In its department store segment, sales at the Daimaru Umeda store dropped 38.6% year-on-year due to ongoing large-scale renovations. While inbound demand from mainland China decreased, the weak yen helped increase the average spending per customer, leading to a 13.8% increase in duty-free sales to 536.6 billion yen.

The company revised its full-year operating profit forecast downward from 47 billion yen to 46 billion yen, despite raising its revenue projection slightly to 470 billion yen. Following the announcement, J. Front Retailing's stock price fell by more than 4% during morning trading.