TOKYO — Takashimaya Co. Ltd. saw declining profits and sales in the first nine months of the fiscal year and slashed its full-year guidance on extremely weak consumer demand in Japan.
Net profit for the nine months ended Nov. 30 dropped 12.8 percent to 10.97 billion yen, or $108.8 million at average exchange rates. Sales fell 4.7 percent to 722.69 billion yen, or $7.14 billion.
Takashimaya, which had already issued a profit warning in September, said it was forced to cut its full-year guidance once more despite focusing on “reasonable prices” and holding special events to attract shoppers.
The Japanese retailer said it now expects its net profit for the fiscal year ended Feb. 28 to fall 39.6 percent to 11.3 billion yen, or $125 million. Sales are seen dropping 6.2 percent to 977.8 billion yen, or $10.8 billion. The net profit forecast is 43.2 percent lower than the original estimate, while the sales forecast is down 4.7 percent from the original estimate.
Takashimaya, which plans to merge with Hankyu and Hanshin parent company H2O Retailing Corp. sometime over the next three years, is one of many struggling retailers in Japan. As reported, department stores here are on track to post their 12th consecutive year of declining sales, and luxury brands are cutting prices and offering early discounts to lure back shoppers. Last month, Japan’s largest department store, Isetan Mitsukoshi Holdings Co. Ltd., issued a profit warning for its fiscal year ended March 31.