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J FRONT RETAILING Co (JP:3086)
:3086
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J FRONT RETAILING Co (3086) AI Stock Analysis

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JP:3086

J FRONT RETAILING Co

(OTC:3086)

Rating:74Outperform
Price Target:
¥2,175.00
▼(-1.94% Downside)
J FRONT RETAILING Co achieves a solid overall score due to its strong financial performance, notably in revenue growth and profitability margins. The valuation is reasonable, providing potential for both growth and income. Technical analysis suggests current stability in stock price movement. However, lack of earnings call data and corporate events limits further insights.

J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)

J FRONT RETAILING Co Business Overview & Revenue Model

Company DescriptionJ FRONT RETAILING Co. is a prominent Japanese retail company engaged in the management and operation of department stores, specialty stores, and other related businesses. The company is known for its extensive range of consumer products, which include clothing, cosmetics, household goods, and food items. It operates primarily through its flagship department store brands, Daimaru and Matsuzakaya, which are well-established names in Japan's retail sector. J FRONT RETAILING Co. also engages in real estate operations, providing rental space in its commercial facilities.
How the Company Makes MoneyJ FRONT RETAILING Co. generates revenue primarily through its retail operations by selling a wide array of consumer goods in its department and specialty stores. The key revenue streams include the sale of apparel, cosmetics, food products, and household items. Additionally, the company earns income from leasing commercial space within its retail properties. The real estate segment of the company contributes significantly to its earnings, as it involves developing and managing commercial facilities, thereby generating rental income. Strategic partnerships with various suppliers and brand collaborations also play a crucial role in enhancing its product offerings, attracting customers, and driving sales.

J FRONT RETAILING Co Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2024)
|
% Change Since: 12.30%|
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and successful cost control, particularly in the Department Store segment, along with a promising outlook for the full year. However, challenges remain in certain business segments, notably in maintaining profit margins and managing unexpected expenses. The sentiment is balanced with both notable achievements and areas requiring further improvement.
Q2-2024 Updates
Positive Updates
Significant Revenue Growth
Consolidated gross sales for the first half of FY 2023 were JPY 540.1 billion, with revenue at JPY 191.6 billion, marking double-digit growth year-on-year. Business profit increased 48.2% to JPY 20.1 billion, and operating profit rose 48.7% to JPY 19.6 billion.
Strong Department Store Performance
Department Store business saw a sales increase of 14.4% year-on-year, with business profit doubling to JPY 11.6 billion and operating profit increasing 2.6 times to JPY 10.1 billion.
Upward Revision of Full Year Forecast
Full year FY 2023 gross sales are forecasted to be JPY 1.131 billion, up 13.2% year-on-year, with business profit expected to increase by 71.0% to JPY 42.5 billion.
Successful Cost Control
Efforts to reduce SG&A expenses resulted in business profit and operating profit being JPY 1.1 billion higher than forecasted.
Improvement in Inbound Sales
Inbound sales exceeded pre-COVID levels, with substantial growth in the second quarter.
Negative Updates
Lower Profit Margins in Key Segments
Revenue was JPY 3.8 billion lower than forecast due to lower profit margins in the Department Store business and weaker commission income in the Shopping Center segment.
Challenges with Payment and Finance Business
The Payment and Finance business faced a decrease in both business profit and operating profit due to upfront costs for securing human resources and system investments.
SG&A Challenges Due to Unplanned Expenses
Unplanned SG&A expenses of JPY 600 million were incurred due to back taxes related to past tax-exempt sales transactions.
Underperformance of Some Regional Stores
Stores such as Nagoya PARCO, Sendai PARCO, and Hiroshima PARCO saw weaker recovery with only a 10% increase from the previous year.
Company Guidance
In the earnings call for Q2 2024, the executives provided detailed guidance on the company's financial performance and future outlook. Consolidated gross sales for the first half of FY 2023 reached JPY 540.1 billion, with revenue of JPY 191.6 billion, reflecting double-digit growth year-on-year. Business profit surged 48.2% to JPY 20.1 billion, while operating profit rose 48.7% to JPY 19.6 billion. Profit attributable to owners of the parent increased by 27.0% to JPY 12.9 billion. Looking ahead, the full year FY 2023 forecast anticipates consolidated gross sales of JPY 1.131 billion, a 13.2% increase year-on-year, with business profit expected to climb 71.0% to JPY 42.5 billion and operating profit projected to more than double to JPY 40 billion. Profit attributable to owners of the parent is estimated to rise 89.6% to JPY 27 billion. The company also plans a year-end dividend of JPY 17 per share, bringing the annual dividend to JPY 33, up JPY 2 from the previous year, with ROE and ROIC anticipated at 7.4% and 4.9%, respectively. Executives highlighted the potential for growth driven by inbound tourism and strong domestic consumption, particularly in luxury segments, while cautious about cost management and strategic investments for sustained profitability.

J FRONT RETAILING Co Financial Statement Overview

Summary
The company demonstrates strong financial health with significant revenue growth, improved profitability margins, and a stable balance sheet. Cash flow generation remains robust, providing liquidity and financial flexibility. While leverage is moderate, the effective balance between debt and equity supports future growth.
Income Statement
85
Very Positive
The income statement reveals robust revenue growth with a TTM increase in revenue of 8.57% compared to the previous year. Gross profit margin stands at 48.10%, indicating effective cost management. The net profit margin has improved to 9.38%, showcasing enhanced profitability. EBIT and EBITDA margins also reflect strong operational performance at 13.60% and 23.64%, respectively.
Balance Sheet
77
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.89, suggesting moderate leverage. Return on equity is healthy at 10.11%, highlighting effective use of equity. The equity ratio is 35.19%, indicating a solid equity base relative to total assets.
Cash Flow
80
Positive
The cash flow statement displays substantial free cash flow growth, with a TTM increase in free cash flow of -16.48%, due to a decrease in operating cash flow. Operating cash flow to net income ratio is 2.07, indicating strong cash generation ability. Free cash flow to net income ratio is 1.69, reflecting efficient cash utilization.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue441.88B407.01B359.68B331.48B319.08B
Gross Profit212.60B170.46B169.54B147.84B134.37B
EBITDA104.57B91.49B75.37B59.46B27.06B
Net Income41.42B29.91B14.24B4.32B-26.19B
Balance Sheet
Total Assets1.16T1.11T1.12T1.19T1.26T
Cash, Cash Equivalents and Short-Term Investments54.98B71.34B50.71B105.21B134.77B
Total Debt363.58B364.40B413.95B502.11B562.81B
Total Liabilities740.91B720.50B749.54B830.79B899.38B
Stockholders Equity409.65B381.90B359.38B350.37B352.17B
Cash Flow
Free Cash Flow71.40B83.66B56.84B44.05B41.74B
Operating Cash Flow85.81B90.69B65.48B49.87B56.47B
Investing Cash Flow-28.31B13.43B-13.37B-5.29B-20.87B
Financing Cash Flow-74.00B-72.75B-105.69B-80.39B58.73B

J FRONT RETAILING Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2218.00
Price Trends
50DMA
2024.16
Positive
100DMA
1933.79
Positive
200DMA
1904.30
Positive
Market Momentum
MACD
46.13
Negative
RSI
78.77
Negative
STOCH
92.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3086, the sentiment is Positive. The current price of 2218 is above the 20-day moving average (MA) of 2063.68, above the 50-day MA of 2024.16, and above the 200-day MA of 1904.30, indicating a bullish trend. The MACD of 46.13 indicates Negative momentum. The RSI at 78.77 is Negative, neither overbought nor oversold. The STOCH value of 92.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3086.

J FRONT RETAILING Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$853.55B14.8410.01%2.31%0.47%-4.34%
74
Outperform
¥580.82B14.0110.25%1.98%8.72%19.26%
73
Outperform
$375.95B11.337.14%2.67%2.11%-4.24%
72
Outperform
¥60.44B31.82
1.05%9.88%-37.53%
72
Outperform
€253.42B20.454.63%1.93%2.86%-74.87%
67
Neutral
¥271.27B14.336.84%2.52%5.08%-22.38%
60
Neutral
¥76.35B35.44
1.06%2.35%-36.99%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3086
J FRONT RETAILING Co
2,218.00
821.74
58.85%
JP:8237
Matsuya Co., Ltd.
1,139.00
297.01
35.27%
JP:8244
Kintetsu Department Store Co.Ltd.
1,896.00
-257.86
-11.97%
JP:8242
H2O Retailing Corporation
2,119.50
39.37
1.89%
JP:3099
Isetan Mitsukoshi Holdings
2,338.00
53.51
2.34%
JP:8233
Takashimaya Company
1,249.00
141.98
12.83%

J FRONT RETAILING Co Corporate Events

J. FRONT RETAILING Co. Announces Share Buyback
Aug 1, 2025

J. FRONT RETAILING Co., Ltd. announced the purchase of 1,136,300 of its own shares, valued at approximately ¥2.28 billion, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 11.5 million shares, with a total value not exceeding ¥15 billion, to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. Front Retailing Revises June 2025 Revenue Report
Jul 18, 2025

J. Front Retailing Co., Ltd. announced revisions to its Consolidated Revenue Report for June 2025, initially released on July 15, 2025. The revisions were necessary due to errors in the reported revenue figures across various business segments, including department stores and shopping centers, which have now been corrected.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen1880.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING Co. Announces Share Buyback Strategy
Jul 1, 2025

J. FRONT RETAILING Co., Ltd. has announced the purchase of its own shares, acquiring 1,092,600 common shares for approximately ¥2.19 billion through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 11.5 million shares, valued at a maximum of ¥15 billion, to potentially enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen1880.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J FRONT RETAILING Co Faces Profit Decline Amid Duty-Free Sales Slowdown
Jun 30, 2025

J FRONT RETAILING Co reported a 15% year-over-year decline in consolidated business profit for the first quarter of fiscal year 2025, primarily due to a slowdown in duty-free sales at department stores. Despite this, the SC and Developer segments showed strong performance, leading to increased revenue and profit. The company maintains its forecast for the first half of the fiscal year and is implementing measures to improve profits amid an uncertain economic environment.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen1880.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING Reports Mixed Financial Results for Q1 FY2026
Jun 30, 2025

J. FRONT RETAILING Co., Ltd. reported its consolidated financial results for the first three months of the fiscal year ending February 28, 2026, showing a modest increase in gross sales and sales revenue compared to the previous year. However, the company experienced a decline in business and operating profits, indicating potential challenges in maintaining profitability. Despite these mixed results, the company has maintained its dividend forecast, suggesting a commitment to shareholder returns amidst fluctuating financial performance.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. Front Retailing Reports Mixed May 2025 Performance
Jun 16, 2025

J. Front Retailing Co. reported a mixed performance across its business segments for May 2025. The Developer Business saw significant growth, while the Department Store Business experienced a decline in sales. The SC Business and PARCO stores showed positive trends, indicating a shift in consumer preferences towards shopping centers and specialty stores. This performance highlights the company’s strategic focus on diversifying its retail offerings and adapting to changing market dynamics, which may impact its future positioning and stakeholder interests.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen1880.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING Announces Share Buyback Strategy
Jun 2, 2025

J. FRONT RETAILING Co., Ltd. has announced the purchase of its own shares, acquiring 876,600 common shares valued at approximately ¥1.66 billion through market purchases on the Tokyo Stock Exchange during May 2025. This move is part of a broader strategy to buy back up to 11.5 million shares, with a total value limit of ¥15 billion, to potentially enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen1880.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025