Tokyu’s operating profit declines

Tokyu Department Store Co. said Monday its operating profit in the February-July period sagged 4.1 percent to 3.28 billion yen, reflecting slack consumer spending amid growing deflation. Its consolidated pretax profit plunged 42.5 percent to 155 million yen.

Overall sales fell 6.3 percent to 216.5 billion yen.

But the company was able to post a consolidated net profit of 7.79 billion yen, up 382.5 percent from a year earlier, mostly from gains on shareholding sales. The company, a core firm of the Tokyu group, said its per-share net profit in the first half of its current business year surged to 28.13 yen from 5.83 yen.

Tokyu attributed the net profit figures to a one-time gain from selling shareholdings in Saint-Germain Co. and other affiliates as well as disposing of sales operations of a sports club subsidiary.

The company also sold land and facilities of an outlet in Tokyo’s Shibuya Ward. As a result, Tokyu was able to reduce its interest-bearing debt significantly.

For the fiscal full year to Jan. 31, Tokyu expects a group net profit of 12.3 billion yen and pretax profit of 4.1 billion yen on sales of 437.90 billion yen.