TOKYO—Onward Holdings said Friday that its first-half operating profit and sales suffered as consumers cut back their spending in the wake of April’s sales tax increase.

The company also cut its full-year forecasts.

Extraordinary gains managed to prop up the company’s bottom line. Net profit for the six months ended Aug. 31 rose 3.1 percent year-on-year to 1.7 billion yen, or $16.66 million at average exchange rates for the period.
 
First half operating profit dropped 29.4 percent to 2.58 billion yen, or $25.23 million.
 
Net sales for the period fell by 0.4 percent on the year to 132.13 billion yen, or $1.29 billion.
 
A spokesman blamed the tax hike for the decline in operating profit and sales. He said higher expenses bit into the figures.
 
Onward lowered both its profit and sales guidance for the twelve months ending Feb 28. It now expects net profit to grow 7.3 percent to 5 billion yen, or $46.01 million at current exchange rates. This is down from a previous forecast of 5.4 billion yen, or $49.69 million.
 
The company forecasts yearly sales to grow 2 percent to 285.5 billion yen, or $2.62 billion. Its previous forecast was for growth of 3.8 percent to 290.7 billion yen, or $2.68 billion.

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