Isetan Mitsukoshi Forecasts 60-B.-Yen Annual Net Loss
Tokyo, July 29 (Jiji Press)--Isetan Mitsukoshi Holdings Ltd. <3099> said Wednesday it expects to suffer a consolidated net loss of 60 billion yen in the year ending in March 2021, its second-largest annual loss, amid the fallout from the coronavirus pandemic.
The Japanese department store operator faces difficulties as it has been hit hard by temporary store closures and a sharp drop in customer traffic caused by the pandemic.
The company closed six stores in the Tokyo metropolitan area for two months. In addition, it booked 12.2 billion in extraordinary loss related to labor costs during the store closures.
Isetan Mitsukoshi believes it will be difficult to swing back to profitability within this business year, as it has been limiting the number of customers to prevent a spread of the virus while sales are expected to be sluggish without foreign tourists.
The department store operator expects to mark the second straight annual net loss. Its record loss was 63.5 billion yen marked in the year ended in March 2010.
[Copyright The Jiji Press, Ltd.]