Japanese retail group Ito-Yokado has reported weak first-half earnings, hit by cool summer weather and poor consumer demand for its products.
The group posted net profit of ¥23.24bn (US$213.0m) for the first-half to 31 August, compared to ¥7.97bn a year earlier. The year-ago earnings were hit by a huge loss from the sale of the group’s unprofitable discount unit Daikuma, reported Dow Jones International News.
Revenue edged up 1.4% to ¥1.77trn, helped by strong earnings at its Seven-Eleven Japan subsidiary.
The groups’ core supermarket operations performed poorly in the first half, with parent only operating profit falling 61% to ¥7.05bn, and same-store sales sliding 2%.
“Our performance in the first half was pretty bad,” president Sakae Isaka was quoted by Dow Jones as saying.
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By GlobalDataThe company said the unseasonably cool summer weather had hit sales of seasonal products, but that the main reason for the poor performance was the retailer’s “inability to develop products that can attract consumers.”
Isaka said the company would expand its food and clothing ranges, focusing more on quality, rather than cheap prices.
