Japan Dept. Store Operators Hit by Coronavirus, Tax Hike
Tokyo, April 14 (Jiji Press)--Four major Japanese department store operators suffered year-on-year declines in their group net profits or incurred a net loss in the business year that ended in February, due chiefly to the consumption tax increase in October last year and the coronavirus outbreak, according to their data released by Tuesday.
The spread of the coronavirus led to a fall in demand from inbound tourists, while warm winter weather dampened sales of seasonal clothing.
Net profit fell 22.3 pct to 21.2 billion yen at J. Front Retailing Co. <3086>, the operator of the Daimaru and Matsuzakaya stores, 2.5 pct to 16 billion yen at Takashimaya Co. <8233> and 37.7 pct to 800 million yen at Matsuya Co. <8237>. Sogo & Seibu Co. logged a net loss of 7.5 billion yen.
Facing difficulties predicting the extent of impacts from the coronavirus outbreak, Takashimaya, Sogo & Seibu and Matsuya stopped short of releasing their earnings projections for the year through February 2021.
Meanwhile, J. Front Retailing said its net profit in the current year will plunge 76.5 pct to 5 billion yen.
[Copyright The Jiji Press, Ltd.]