Top Culture’s profit spike came from negative goodwill, and its full-year outlook is now undecided
Top Culture reported interim net income of ¥812 million, well above plan, but said ¥747 million of that came from negative goodwill after subsidiary Meibundo took over nine bookstore operations and a corporate sales division. The underlying retail picture was weaker: operating profit was ¥142 million and ordinary profit ¥113 million, both far below the company's own forecast, while existing-store sales in the Tsutaya bookstore segment fell 2.4%. Management withdrew its full-year outlook to undecided as it works out how to run and renovate the inherited stores.