Aeon H1 op profit falls 40 pct, keeps outlook

Tue Oct 6, 2009 2:07am EDT
 
[-] Text [+]

TOKYO, Oct 6 (Reuters) - Japan's second-largest retailer, Aeon Co Ltd (8267.T), reported a 39.5 percent fall in first-half operating profit on Tuesday, hurt by prolonged weak consumer spending, but it kept its full-year outlook.

The company said its operating profit came in at 35.5 billion yen ($396.7 million) for the six months that ended in August, down from 58.7 billion yen a year earlier.

The retail conglomerate runs about 1,800 supermarkets and grocery stores, including Jusco stores, as well as thousands of specialty shops such as U.S. apparel chain Talbots (TLB.N).

The firm and rivals such as Seven & I Holdings (3382.T) have been suffering sharp sales falls for months as thrifty consumers cut spending on clothes and other non-daily items and defect to cheap specialty stores like Fast Retailing's (9983.T) Uniqlo.

The firm kept its full-year forecast at a range of 130-140 billion yen operating profit, up 4.5-12.6 percent from a year earlier and above a mean estimate of 119.8 billion yen in a poll of 12 analysts by Thomson Reuters I/B/E/S. Shares of Aeon have fallen 5 percent so far this year, underperforming a 9 percent gain in the benchmark Nikkei average .N225. (Reporting by Taiga Uranaka)

 

Featured Broker sponsored link