13 May 2021
The Weekly

Isetan Mitsukoshi posted a net loss of more than JP¥40bn (US$365mn), for its most recent fiscal year, ended March 31. This followed a loss of JP¥11.19bn in the previous year. The retailer also posted an operating loss of JP¥20.98bn. In the same period a year earlier, its operating profit dropped 46.4% to JP¥15.68bn. Isetan Mitsukoshi recorded yearly net sales of JP¥816.01bn, down 27.1% from the JP¥1.12tn it achieved a year prior. In the second quarter of 2020, which ran from April through June, Japan’s real GDP contracted by 7.9% compared with the previous quarter, and 28.1% at an annualized rate. Sales of value-added, big-ticket items such as luxury brand goods, watches and jewellery have been favourable, particularly at the Isetan Shinjuku and Nihonbashi Mitsukoshi flagship stores in Tokyo. The retailer has also seen some success with online sales. Last June, it launched both a revamped e-commerce site and a new shopping app. For the current financial year, ending March 31, 2022, the company expects to show a net profit of JP¥1bn and operating profit of JP¥3bn. However, it forecasts that its net sales will fall a further 45.2% to total JP¥447bn.