Wal-Mart Japan unit says 2007 loss double forecast

TOKYO (Reuters) - Wal-Mart Stores Inc's (WMT.N) Japan unit, Seiyu Ltd 8268.T, said on Tuesday that it likely lost twice as much money last year as previously forecast due to slumping sales and asset write-downs.

Seiyu, which is owned 96 percent by the world's largest retailer, said it now expected to post a group net loss of 20.9 billion yen ($196 million) for calendar 2007, instead of its previous forecast for a loss of 10.4 billion yen.

Seiyu said its same-store sales fell 1.2 percent in 2007, hit by sluggish demand for clothing and household goods. It said its consolidated sales will likely total 952.3 billion yen for 2007, down 1.1 percent from a prior forecast.

The company said in a release that an asset impairment charge of about 6.5 billion yen also contributed to the bigger loss. A Seiyu spokeswoman declined to elaborate on the charge, saying further details would be revealed at a news conference at 3 a.m. EST.

(Reporting by Nathan Layne)