TOKYO — Japanese department store operator Takashimaya Co. posted a net profit of 7.7 billion yen, or $82.6 million at average exchange, for the year ended Feb. 28, down 34.4 percent from last year.
The retailer blamed the drop on continued weak consumer spending, brought on by a combination of consumer anxiety regarding the current global economic situation and Japan’s aging society. It also cited the continued low performance of the department store industry in general in Japan.
Operating profit dropped 45.9 percent to 13.43 billion yen, or $143.8 million. Net sales came in at 877.76 billion yen, or $9.4 billion, down 10.1 percent from last year.
The company said in March it would close its New York store on Fifth Avenue in June, and it had scrapped plans to merge with fellow department store operator O Retailing Corp., of the Hankyu and Hanshin chains. The company said Friday that under its new long-term strategy it is aiming to reduce operating costs and strengthen management.
For the fiscal year ending Feb. 28, 2011, Takashimaya is forecasting a 3.8 percent increase in net profit, at 8 billion yen, or $85.9 million at current exchange. Sales are seen totaling 846.5 billion, or $9.08 billion, a decrease of 3.6 percent.