Japan Retail Sector "Department stores: June sales show sustained strength..."

Research evidence excerpt

Japan Retail Sector "Department stores: June sales show sustained strength..."

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Japan Retail Sector Equities

JapanDepartment stores: June sales show sustained

strength in tax-free sales Retail

Takahiro Kazahaya

Analyst

takahiro.kazahaya@ubs.com

Summary +81-3-5208 6226

Isetan Mitsukoshi Holdings (3099), Takashimaya (8233), J. Front Retailing (3086) and Kazuki Oike

H2O Retailing (8242), all not covered, announced monthly sales trends for June after the Associate Analyst

1 July close. Suffering no notable impact from adverse weather, all four companies kazuki.oike@ubs.com

reported yoy increases in consumption tax-free sales, driven by unit price increases. +81-3-5208 6964

Isetan Mitsukoshi Holdings: Same-store sales excluding tax-free sales rose 1.9%

yoy

Sales at Isetan Mitsukoshi's domestic department stores (same-store total) grew

5.6% yoy, while those in the company's greater Tokyo outlets (same-store total) rose

8.5%. By store, sales were +12.8% yoy at the Isetan Shinjuku store, +7.4% yoy at the

Mitsukoshi Nihonbashi store, and +6.1% yoy at the Mitsukoshi Ginza store.

Consumption tax-free domestic same-store (total) sales rose 33.3% yoy (number of

customers +5.4%, sales per customer +26.6%). Same-store sales excluding

consumption tax-free sales in the domestic department store business were up 1.9%. By

store, they were +7.1% at the Isetan Shinjuku store, +6.4% at the Mitsukoshi

Nihonbashi store, +0.4% at the Mitsukoshi Ginza store and -2.8% yoy at regional

stores. Consumption tax-free sales in the domestic department store business were

¥13.9bn in June (preliminary figure), accounting for 14.8% of store sales (11.7% in June

2025). The company's plan for tax-free sales at domestic department stores in FY3/27 is