TOKYO — Japanese department store operator Takashimaya Co. reported falling yearly profits and sales and forecast more of the same as the economic crisis and weakened consumer demand hit the group’s results.
For the fiscal year on ending Feb. 28, net profit dropped 37.2 percent to 11.8 billion yen, or $117.7 million at average exchange, from a year ago. Sales declined 6.4 percent to 976.1 billion yen, or $9.73 billion.
Operating profit decreased 34.2 percent to 24.8 billion yen, or $247.3 million.
Takashimaya has been revamping its operations in an effort to help boost earnings, but those measures could only partly compensate for a 10 percent drop in sales for the second quarter.
The department store retailer, which plans to merge with Hankyu and Hanshin parent company H2O Retailing Corp. during the next few years, expects business to contract further during the fiscal year ending Feb. 28, 2010.
Takashimaya is predicting a 36.2 percent fall in net profit to 7.5 billion yen, or $74.9 million at current exchange, and a 8.2 percent decline in revenue to 896 billion yen, or $8.95 billion.
The department store said it plans to enter the Chinese market by opening its first flagship in Shanghai in 2012.