Lawson Inc., Japan's No. 2 convenience store chain, said Tuesday its group net profit for the year through February plunged 45 percent to 8.86 billion yen due to closures of unprofitable stores.
Group operating profit for the year fell 6.2 percent to 34.11 billion yen, while sales were down 2.3 percent to 250.33 billion yen.
Lawson said it booked a 19.5 billion yen charge on the closure of 391 unprofitable stores and an early retirement program.
Including other store closings, the chain marked its first decline in the number of domestic outlets, which stood at 7,625 as of the end of February.
Sales from all stores -- which affect the amount of royalties paid by franchisees -- grew 0.7 percent to 1.29 trillion yen. The comparable figure for Seven-Eleven Japan Co., the largest convenience store chain, was 2.21 trillion yen.
Lawson's same-store sales dipped 1.9 percent from the previous year. The firm said it expects sales at stores that have been open for at least a year to remain flat in the current year.
It said it has emerged from its negative legacy and will go on the offensive this year, including opening 200 new outlets.
New outlets will be opened in Shanghai, where the chain already has 99 stores, the firm said.
But there are no plans to expand beyond that city, as a leading position in Shanghai must be achieved before the rest of China can be exploited, Lawson added.
For the current business year, the firm forecasts 17.2 billion yen in group net profit on revenues of 254 billion yen.