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Kintetsu’s Abeno Harukas flagship fails to meet sales target

Kyodo

Kintetsu Department Store Co. has lowered its earnings estimate for the year through February after its flagship outlet, which opened in June, missed its sales target.

It is now projecting ¥4 billion in consolidated operating profit, down ¥600 million from its previous projection, on sales of ¥283 billion, down ¥7 billion.

The net profit estimate was kept unchanged at ¥1.9 billion, factoring in proceeds from asset sales that more than offset a ¥1.1 billion interim net loss stemming from devaluations of land assets.

Sales estimates at Kintetsu’s new flagship, located in the Abeno Harukas building in Osaka, were revised to ¥100 billion, down ¥4 billion. The company is opening refurbished floors at the outlet’s adjacent Wing Building on Thursday, but it said Tuesday it has concluded it would be difficult to lift earnings enough to meet the original target for the year.