H2O Retailing Incurs Record Net Loss of 13.1 B. Yen

Economy

Osaka, May 25 (Jiji Press)--H2O Retailing Corp. <8242> on Monday reported a record consolidated net loss of 13,150 million yen for fiscal 2019, which ended in March, due partly to a fall in sales at group department stores amid the new coronavirus outbreak.

The net loss was biggest since the company, which operates mainly in the Kansai western Japan region, was established in 2007 through the business integration of the operators of Hanshin and Hankyu department stores.

H2O Retailing, which also runs Izumiya and other supermarkets, recorded a net profit of 2,162 million yen in the preceding year.

The poor fiscal 2019 performance came as the company booked an impairment loss of 14.1 billion yen on its struggling supermarket business, including at Izumiya stores.

Department store sales fell short of its estimate by 22 billion yen because customers decreased due to authorities' stay-at-home requests to prevent the spread of the coronavirus and the number of foreign visitors fell sharply amid the pandemic.

[Copyright The Jiji Press, Ltd.]

Jiji Press