H2O Retailing profit plunges 85% on department store struggles

H2O Retailing reported first quarter net sales of 163.6 billion yen, up 1.1% year-over-year, but profit attributable to owners plunged 85% to 3.98 billion yen.

The decline stemmed from decreased gross profit and higher expenses in the department store segment due to reduced inbound sales and store renovations.

The supermarket business performed strongly with sales up 2.9% and operating profit jumping 35.7%.

The company maintained its full-year forecast of 30 billion yen operating profit.