Kintetsu Department Store experienced a significant surge in its stock price on Wednesday following an upward revision of its fiscal-year earnings guidance. The Osaka-based company’s shares climbed by as much as 6.1% before settling at a 5.5% increase, reaching 2,554 yen.
In an announcement made after the market closed on Tuesday, Kintetsu revealed its expectation of a 37% rise in net profit for the fiscal year ending in February 2024. The revised projection stands at Y2.60 billion ($17.8 million), up from the previous prediction of Y1.50 billion.
The department-store operator attributes its continued strong performance to the relaxation of pandemic-related restrictions, which significantly bolstered results in the June-August period. Notably, sales of food items and cosmetics played a key role in driving earnings during the March-May quarter.
In addition to domestic factors, the return of international travelers to Japan has also positively impacted department-store sales. Kintetsu estimates that its fiscal-year revenue will increase by 4.5%, reaching Y112.70 billion, surpassing the earlier forecast of Y110.70 billion.
This encouraging news highlights the resilience and adaptability of Kintetsu Department Store as it navigates the challenging business landscape.
