Aeon, Japan’s second-largest retailer by revenue, warned today (7 January) that it could post a full-year net loss after it saw a fall in earnings during the first nine months of the year.
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In a trading update, the company said that poor domestic retail sales and a writedown at its US clothing retail unit, Talbots, weighed on its results.
Aeon said operating profit totalled JPY65.9bn (US$702m) for the nine months, down 18% from the same period a year earlier.
Aeon posted a net loss of JPY29.45bn in the nine months ended 20 November, down from a profit of JPY31.92bm in the corresponding period a year earlier.
During the nine-month period, same-store sales fell 1.2% year-on-year. Food sales held up relatively well, with the sales decline driven by a 4.4% fall in clothing sales, the company revealed.
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By GlobalDataFor the full year ending in February, Aeon said that it expects profits to fall in a range of JPY2.5bn to a loss of JPY2.5bn. Previously, the company had offered profit guidance of JPY11-15bn.
