Seven & I lowers outlook
Japanese company Seven & I is expecting a lower full-year net profit as difficult trading conditions take their toll.
The company, which runs 7-Eleven convenience stores, department stores Sogo and Seibu, and large-scale Ito-Yokado stores, reported a first half year net profit fall of 14 per cent to 34.32 billion yen (US$436.19 million) from 39.69 billion yen (US$504.44 million) a year earlier.
Revenue increased 0.7 per cent to 1.244 trillion yen (US$15.81 billion) from 1.235 trillion yen (US$15.69 billion) while operating profit declined 2.5 per cent to 79.90 billion yen (US$1.01 billion) from 81.96 billion yen (US$1.041 billion).
Seven & I blamed the profit fall on the closure of some Seibu and Sogo stores and the poor performance of Ito-Yokado, which suffered from 88 per cent plunge in operating profit during the first half.
Full-year outlook has been lowered from the previously expected 155 billion yen (US$1.97 billion) to 143 billion yen (US$1.81 billion) in net profit.
Meanwhile, the company said China sales are now returning to normal after temporarily declining by 30 per cent due to store closures in Beijing and Chengdu due to territorial dispute between China and Japan.
“Though we’re still compiling the figures, the impact on our earnings shouldn’t be that big,” said Seven & I president Noritoshi Murata.