TOKYO -- Don Quijote Holdings' operating profit likely reached a record 42 billion yen ($409 million) in the fiscal year ended in June, up 7% on the year and topping guidance of 41 billion yen.
The Japanese retailer apparently found success with a strategy of giving shoppers a feeling of saving through low prices. As consumers looked to cut down on everyday costs, sales grew for such daily goods as milk, detergent and shampoo.
Sales are seen at 760 billion yen, up 11% and beating the projection by 10 billion yen. Growth in membership for Don Quijote's e-money card program lifted sales per customer. The more the member spends in a year, the more points are earned in percentage terms when value is added to the card. Store openings also helped boost sales.
Although sales of cosmetics and drugs remained strong for tourists visiting Japan, growth slowed in the second fiscal half as the yen strengthened.
Don Quijote will release its full-year results Aug. 17. For the current year through June 2017, both sales and profit are expected to improve thanks to store openings and cost control efforts.