Takashimaya Co. said Thursday its group net balance swung into the black for the year to Feb. 28 but that its consolidated revenue and pretax profit dropped due to continued economic stagnation.
Japan's leading department store operator reported a group net profit of 3.94 billion yen, compared with a loss of 57.51 billion yen for the previous year, when the company was hit with massive costs to cover a shortfall in retirement allowance reserves.
Group pretax profit fell 17.9 percent to 17.19 billion yen on overall revenue of 1.1842 trillion yen, down 1.8 percent. Operating profit slid 13.1 percent to 16.44 billion yen on a consolidated basis.
Takashimaya attributed the declines largely to a continued contraction in consumer spending, which caused the Osaka-based company to register sales growth at only four of its 20 domestic outlets.
Its mainline department store segment logged total sales of 975.37 billion yen, down from 987.16 billion yen the previous year. Operating profit also decreased in its real estate, consumer credit and leasing, wholesale and leisure-related affiliates.
For the current year to February 2004, the company expects its group net profit to more than double to 8.8 billion yen. Group pretax profit is estimated at 17.5 billion yen, up 1.8 percent, and overall revenue at 1.08 trillion yen, down 8.9 percent.