Japanese retailer Seven & I Holdings has lifted its forecast for annual sales and profits.

The company has upped its estimates for profits for the year to the end of February on the back of a lower tax bill, “favourable” sales this summer and higher demand from reconstruction after the earthquake in March.

Seven & I said it now expects net income to be JPY121bn, up from its previous forecast of JPY105bn. The retailer also forecast operating profit to be JPY283bn, compared to an earlier estimate of JPY137bn. Both net income and operating income are expected to be higher than in Seven & I’s last financial year.

The group’s forecasts for annual revenues is JPY4.8trn, up from JPY4.68trn. In its previous financial year, Seven & I reported revenue of JPY5.12trn.