Kintetsu Department Store Co.,Ltd.

Business Details

The core business operated by the Company and Kintetsu Tomonokai Co., Ltd. Handles sales of clothing, food, and other merchandise, as well as intermediary services for prepaid merchandise transactions (Tomonokai Business). Centered on the flagship store "Abeno Harukas Kintetsu Main Store," the segment operates regional stores along the Kintetsu railway lines, including Uehonmachi, Nara, Kashihara, Wakayama, Kusatsu, and Yokkaichi. The External Sales Business, Franchise Business, and directly-operated sales floors are positioned as key profit pillars, and this segment accounts for approximately 78% of the Group's consolidated net sales, making it the most important segment.

Recent Overview

Net sales decreased 3.7% year-on-year, but operating profit increased significantly by 68.9%.

In the first quarter of FY2027 (ending March 2027) (March to May 2026), the Department Store Business segment recorded net sales of ¥22,933 million (down 3.7% year-on-year) due to the rebound effect from the official shop within the Osaka-Kansai Expo venue that opened in April of the prior year, as well as the impact of the closure of the Nagoya store (Kintetsu Passe). Meanwhile, Abeno Harukas Kintetsu Main Store performed well, up 7.8% year-on-year. In addition to the effects of the grand reopening of the renovated prepared foods sales floor, the opening of "Capcom-ics Abeno Hoop store," and events (Great Hokkaido Fair, Harukas Nippon Exposition), growth in women's apparel, tax-exempt sales, and cosmetics, along with reductions in selling, general and administrative expenses, contributed to a substantial improvement in operating profit to ¥1,508 million (up 68.9% year-on-year).

Key Products

Growth Drivers

• Enhanced customer traffic through the remodeling of Abeno Harukas Kintetsu Main Store (renovation of prepared foods sales floor and strengthening of select brands)
• Maximizing the appeal of the Abeno-Tennoji area (collaboration among the four facilities including Hoop, and, and Abeno Well-being Terrace)
• Continued strong performance in external sales (strategy to expand external sales across the Kintetsu Group)
• Improvement of the profit structure through active expansion of franchise and directly-operated sales floors
• Strong growth in tax-exempt sales driven by the weak yen trend (solid performance centered on luxury brands)
• Increased foot traffic and sales through regional revitalization events such as the "Harukas Nippon Exposition"
• Brand promotion and capture of inbound demand through operation of the EXPO 2027 Official Store

Risks

• Decline in sales for FY2027 (ending March 2027) due to the closure of the Nagoya store (Kintetsu Passe) on February 28, 2026 (contributing to a 3.6% year-on-year decline on a non-consolidated basis)
• Downward pressure on Department Store Business sales due to the rebound effect from the official shop at the Osaka-Kansai Expo venue in the prior year
• Concerns over profitability at regional stores, as indicated by the impairment loss recorded at the Yokkaichi and Nara stores (¥4,314 million)
• Instability in tax-exempt sales (deterioration in Japan-China relations, fading effects of the weak yen, geopolitical risks)
• Instability in consumer sentiment and polarization of consumption due to continued price inflation
• Weakness in certain merchandise categories, such as a 13.2% year-on-year decline in food sales (non-consolidated)