April 3, 2014 11:39 pm JST

Retailer Uny Group lowers view for fiscal 2013

NAGOYA -- Uny Group Holdings Co. on Thursday cut its earnings estimates for the fiscal year ended February after logging disappointing sales at its convenience and general merchandise stores.

     The Japanese company now expects to report a pretax profit of 25 billion yen ($238 million), down 5.5 billion yen from its previous forecast.

     The downgraded estimate amounts to a 25% drop from the previous fiscal year, ignoring the change in the company's annual book-closing from Feb. 20 to the end of February.

     Operating revenue, equivalent to sales, is now seen at 1.03 trillion yen, down 300 million yen from the previous estimate. The group's supermarkets performed well. But its convenience stores struggled, particularly in fast-food offerings, suffering a 3% drop in same-store sales. The company lowered its operating profit view by 5.8 billion yen to 25.3 billion yen.

     Net profit is now seen at 7.4 billion yen, down from the previous estimate of 12 billion yen and a 76% decline from a year earlier.  The fiscal 2012 result was inflated by one-off negative goodwill on its buyout of convenience store operator Circle K Sunkus Co.

(Nikkei)