Retailer Seven & I Holdings Co. sharply revised downward Tuesday its earnings outlook for its just-ended business year, citing a drop in sales particularly at its department stores and special charges for shop closures and other measures.
Seven & I also said it will invest in music retailer Tower Records Japan Inc. to boost its entertainment business. The retailer is expected to acquire more than a 21 percent stake in Tower Records.
For its full 2009 financial year, which ended Sunday, Seven & I said it now anticipates a group net profit of ¥40 billion, down 63.3 percent from its earlier projection in September.
The company expects an operating profit of ¥223 billion, down 10.8 percent from its previous forecast, on sales of ¥5.12 trillion, down 1.2 percent.
Seven & I, which runs supermarket chain Ito-Yokado Co. and convenience store chain Seven-Eleven Japan Co., said it expects to book an extraordinary loss of around ¥40 billion linked to impairment losses for closure of stores.