Japanese retailer Daiei has announced that it expects to record a parent-only pre-tax loss of JPY3bn for the year to the end of February. The retailer had earlier forecast a JPY2bn profit.
The company, which operates a nationwide chain of supermarkets, attributed the loss to lower-than-forecast sales and a rise in advertising and promotional expenditure. But it will be the first time the company has recorded a pre-tax loss for eight years.
However, Daiei said it expected to record a pre-tax profit of between JPY6bn and JPY7bn yen for this financial year.
Daiei has also downgraded its operating profit forecasts for the year to the end of February. It now says it is expecting an operating loss of around JPY5bn, against its original forecast of a JPY4bn operating profit.