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As soon as the news of Japan easing tourist visas for people from China was released, local retail travel stocks surged immediately.
① The Japanese Foreign Minister, Toshimitsu Motegi, announced the relaxation of visa requirements for Chinese tourists to Japan, expected to be implemented in spring 2025. ② After the announcement, retail and tourism-related stocks in Japan rose, with J. Front Retailing Co. soaring by 8.38%, while Isetan Mitsukoshi Holdings and Takashimaya increased by 6.98% and 3.69%, respectively.
DD Group Research Memo (9): Aiming to increase customer touchpoints and maximize LTV through brand enhancement and expansion of business areas (1)
■Future Growth Global Strategy 1. Direction of the Medium-term Management Plan DD Group <3073> announced a three-year medium-term management plan in April 2023, and a year and a half has passed as a milestone. It aims to capture changes in the environment, starting with consumer behaviors and needs triggered by the COVID-19 pandemic, while being aware of a mid-to-long-term paradigm shift. Furthermore, under the group guideline of "Customer Joy - Realizing Value-added Customer Value," the management vision is "Food service that consumers demand.
DD Group Research Memo (8): The financial estimates for the fiscal year ending February 2025 have been revised upward, anticipating a trend of increased revenue and profit.
■Performance Outlook 1. Performance outlook for the fiscal period ending February 2025. Based on the upward trend in the first half performance and the current situation, the DD Group <3073> has implemented an upward revision for the consolidated performance forecast for the fiscal period ending February 2025. Revenue is expected to increase by 4.6% year-on-year to 38,780 million yen (revision of +310 million yen), operating profit is expected to rise by 15.9% year-on-year to 3,760 million yen (same +260 million yen), and ordinary profit is expected to grow by 17.9% year-on-year to 3,690 million yen (same +320 million yen), with the Net income attributable to Shareholders of the parent company.
DD Group Research Memo (7): Aiming to undertake store operations utilizing new business formats for the new normal and IP content.
■Activity Results 1. Achievement of New Store Openings In the first half of the February 2025 period, a total of 3 new stores were opened. Specifically, a Japanese restaurant "Mizuiro" (May 22) was opened on the higher floors of Caretta Shiodome *1, "BAGUS Umeda Store" (May 30) *2 in Osaka Umeda, and "Sakusen Honohomare" (June 27) *3 in Nishi-Shinjuku, all of which have launched faster than expected. While the pace of opening new stores continues to be somewhat restrained, the two stores in the "food and beverage business" have a good location and potential.
DD Group Research Memo (4): Strengths in brand management that leverages diversity and dominant expansion by opening stores in prime locations.
■Corporate Features 1. Achieving both revenue stability and growth through unique brand management. The diversity of Shareholding brands, leveraging business development capabilities, allows for agile responses to environmental changes and dispersion of the life cycles of key brands, thereby achieving both stable revenue and sustainable growth. Since 2020, during the COVID-19 crisis, the business sector has faced impacts beyond expectations due to repeated states of emergency (requests for closures and reduced hours, restrictions on alcohol service).
DD Group Research Memo (2): In addition to high-profit dining and amusement businesses, the hotel and A-REIT ETF businesses are also being developed (1).
■Company Overview of DD Group <3073> 1. Business Description The "Food and Amusement Business" operates Restaurants, Cafes, and Specialty Food Formats, as well as venues for darts, billiards, karaoke, and more, expanding multi-brand operations in major cities nationwide, including the Tokyo metropolitan area. This business is characterized by brand management that leverages the diversity of its Shareholding brands and a dominant expansion strategy that focuses on opening locations in prime locations. Additionally, the acquisition of Shonan Label Inc. and others in December 2019 allowed for expansion into hotels and leased containers.