Cold winds bit into profits for Japanese clothing retailer Shimamura, which was forced by unseasonably cool weather to offer steep discounts.

Its consolidated operating profit for the March-August half fell 9 per cent to about ¥23 billion (US$206 million). In June, Shimamura had predicted a 13 per climb.

Sales, including operating revenue, edged up to about ¥285 billion. Its printed t-shirt line SweaT’s did not sell well at core chain Fashion Center Shimamura, which accounts for 80 per cent of total sales. Existing-store sales sank 1.5 per cent because of the poor weather.

Shimamura offered more discounts to shed excess inventory accumulated during the usually busy spring/summer season. The company’s cool denim and pants line usually retails for ¥2900 yen, but the price was cut 30 per cent at one point to ¥2030. Per-customer spending fell 2.1 per cent across all stores, cancelling out a 2.2 per cent increase in foot traffic.

Advertising and labour costs also rose.

Shimamura is reviewing domestic store openings for the year. It opened 23 stores in the first half compared with 29 the previous year. Its plans to open 85 locations in the year ending in February has now been lowered to 70.

While existing-store sales declined year on year for four straight months through June, there was a 6.4 per cent gain in July and 2.4 per cent last month.