Wal-Mart’s Japanese unit Seiyu Limited today (30 January) revised its forecast for fiscal 2006, predicting deeper losses than previously anticipated.
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Seiyu estimated a net loss of JPY55.8bn (US$459m) for the full year. Its original loss prediction had been JPY54.5bn. Sales during FY 2006 are expected to total JPY960.8bn, down 3.6 % year-on-year, while anticipated consolidated operating profit
is JPY3.2bn, up 2% over fiscal 2005.
Good news came in the form of same store sales, which rose for the first time in 15 years, up 0.6%. However, the company noted that this was below its more ambitious target for comparable growth.
“Projected results for 2006 reflect marked improvement in sales and profitability year-on-year but a shortfall on previous forecasts,” the company said.
Unlike most other Japanese retailers, Seiyu is primarily focused on its supermarket operations and lacks finance or specialty store operations to offset sluggish sales.
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