Japanese c-store retailer FamilyMart plans to open more stores this year than in the previous 12 months.
Shares in FamilyMart fell today (10 April) after it forecast net profit would be lower in its current financial year.
However, the retailer is targeting higher sales and operating profit – and announced a higher target of store openings for the year to 28 February 2014 than the year before.
FamilyMart shares dropped more than 8% in Tokyo after the company said it expects annual net income for the year to 28 February 2014 to be JPY22.5bn. Shares in Family Mart are up nearly 24% since the start of the year.
The forecast came as FamilyMart reported its full-year results for the year to 28 February 2013, which included net profit of JPY25bn, a jump of over 50% on a year earlier.
The retailer’s operating income was JPY43.11bn, up from JPY42.59bn in its 2011/12 financial year. Gross revenue rose 1.5% to JPY334.09bn. FamilyMart expects operating profit to reach JPY45.1bn this year and sales to be JPY354.1bn.
At the end of February, FamilyMart had over 22,181 stores, with over 10,000 of the shops in Japan. The retailer opened 2,102 stores last year and plans to open 2,197 in its new financial year, taking its network to 24,378 outlets.
Last week, FamilyMart entered its latest market with a store in the Philippines. It wants to have 30 outlets by the end of next February.