Letter to Shareholders

Aiming to Become the “Future Department Store” by Taking Advantage of IT, Stores, and Human Resources

 

Under Isetan Mitsukoshi Group’s three-year plan (FY2019 to FY2021), we will expand our earning potential by promoting our growth strategy and conducting structural reforms with the aim of becoming a “future department store” by taking advantage of IT, stores, and human resources, which are the Group’s strengths.

 

■Results for fiscal 2018

 

Net sales in fiscal 2018 (April 1, 2018 to March 31, 2019) amounted to 1,196.8 billion yen (95.3% year on year). In the domestic department store business, which is our main business, comparable store results exceeded those of the previous fiscal year due to a firming of high-priced items such as sundry goods, clothing, and cosmetics; however, sales were down year on year due to closing unprofitable stores and reforming unprofitable businesses, etc. Operating income increased to 29.2 billion yen (119.7% year on year), partly due to the success of cost structure reforms.

 

■Results projections for fiscal 2019

 

Net sales in fiscal 2019 (April 1, 2019 to March 31, 2020) are projected to decline to 1,190.0 billion yen (99.4% year on year) due to factors such as the closure of the Isetan Sagamihara and Isetan Fuchu stores in September. We aim to achieve an operating income of 30.0 billion yen by investing in digital and flagship stores for future growth and continuing to promote cost structure reforms.

 

■Shareholder returns

 

At the Isetan Mitsukoshi Group, our basic policy is to maintain a stable level of dividends while aiming for long-term improvements in corporate value, and we aim to return profits to shareholders while giving general consideration to the business environment, results, and financial soundness. Based on this policy, we expect the annual dividend for fiscal 2019 to be 12 yen comprising an interim dividend of 6 yen and a year-end dividend of 6 yen.


In fiscal 2019, we will promote the provision of new value to customers by reforming business models to realize our aim of being a “future department store” and fully implementing initiatives aimed at new online businesses. Furthermore, we aim to be a corporate group that is trusted by all stakeholders, including our shareholders, by constantly working to ensure thorough compliance in our management, such as by speeding up management decision-making, strengthening the administrative supervision oversight function, and enhancing internal control systems, in order to increase the transparency of our corporate activities.

With regard to our stakeholders, we will be looking forward to your continuing and added support in the future.

 

May 2019
Toshihiko Sugie
President and CEO