TWO BIG JAPAN STORES’ NET SLIP IN HALF
TOKYO — Two leading Japanese department store chains reported profit declines for the six months through August.
Takashimaya reported an 8.5 percent drop in its nonconsolidated taxable profits to $61.3 million (7.4 billion yen) in the six months. Sales for the period rose 5.4 percent to $4.5 billion (539.2 billion yen) from 511.5 billion yen.
The other department store group, Mitsukoshi Ltd., reported that its pretax operating profit dropped 25 percent to $25.4 million (3.07 billion yen) citing sluggish consumer demand.
Sales were off 2.7 percent to $3.06 billion (369.64 billion yen). The company said the decline in sales, attributed to an increase in the national sales tax and a poor labor market, was led by a 3.8 percent drop in apparel sales to $1.08 billion (130.2 billion yen), or 35 percent of total sales.
Jewelry sales, however, were up 3.7 percent to $462.4 million (55.81 billion), or 15 percent of total sales.
After a $369.6 million (44.6 billion yen) loss from a golf course development program, Mitsukoshi showed a net loss for the period of $279.3 million (33.7 billion yen).