2 Japan Department Store Operators Suffer Profit Falls

Tokyo, April 15 (Jiji Press)--Major Japanese department store operators J. Front Retailing Co. and Matsuya Co. suffered drops in their consolidated net profits in the fiscal year through February, while industry peer Takashimaya Co. reported its first red ink in five years.

The three companies' dismal business results reflected falls in their tax-free sales, mainly due to the Chinese government's call on its citizens to refrain from visiting Japan following Japanese Prime Minister Sanae Takaichi's remarks on a possible Taiwan contingency.

According to their earnings reports released Tuesday, tax-free sales fell 28 pct from the previous year for Matsuya, 15 pct for J. Front Retailing, which is the parent of Daimaru Matsuzakaya Department Stores Co., and 18 pct for Takashimaya.

Takashimaya logged a net loss of 8.1 billion yen, also pressured by extraordinary losses from convertible bond purchases, falling into the red for the first time since the fiscal year that ended in February 2021, when its earnings were battered by the COVID-19 pandemic.

J. Front Retailing and Matsuya saw their net profits decline by 31.7 pct and 8.0 pct, respectively.

[Copyright The Jiji Press, Ltd.]