TOKYO—Japanese department store operator Isetan Mitsukoshi Holdings posted a first-quarter net loss of 795 million yen, or $8.63 million at average exchange, for the three-month period ended June 30, the company said Friday. This is down from a net profit of 3.86 billion yen, or $39.62 million, for the same period last year.
Sales for the period fell 5.6 percent from last year’s figures to 289.23 billion yen, or $3.14 billion. The company also registered a special loss of 5.52 billion yen ($59.95 million) due to the removal of fixed assets, which contributed largely to the net loss.
Isetan Mitsukoshi reported an operating profit of 1.63 billion yen, or $17.7 million.
The company revised its earnings forecast for the full year ending March 31, 2011 to 12 billion yen ($140.14 million at current exchange), up from a previous outlook of 10 billion yen, or $116.78 million. This is due to a revised figured for an expected special loss due to disposal of fixed assets.
However, Isetan Mitsukoshi downgraded its full-year sales to reflect difficult economic conditions. It now expects sales to come in at 1.24 trillion yen, or $14.48 billion, four percent less than its previous forecast.