Key Facts
• Daiwa, operating stores in Toyama and Kanazawa, announced fiscal results for March last year to February this year.
• Sales declined for the second consecutive term, down 2.7% to 15.983 billion yen.
• Operating profit was 181 million yen, but impairment on a Kanazawa hotel caused a net loss of 1.132 billion yen.
• This marks Daiwa’s first deficit in four years.
• Toyama store sales fell 1.4% compared to the previous term.
• Toyama store manager Tsutomu Yoshizawa cited summer heat and January snow impacting apparel sales.
• The Toyama store’s Hokkaido product fair achieved record-high sales.
• Concerns remain over prolonged Iran tensions potentially raising fixed costs like utilities.
Summary
Daiwa, a department store chain with locations in Toyama and Kanazawa, reported its fiscal year results ending February with a net loss of 1.132 billion yen, marking its first deficit in four years. Despite securing an operating profit of 181 million yen, impairment losses related to a hotel in Kanazawa led to the overall loss. Sales dropped 2.7% year-on-year to 15.983 billion yen, continuing a two-term decline. The Toyama store experienced a 1.4% sales decrease, affected by extreme summer heat and heavy snowfall in January, though its Hokkaido product fair saw record sales. Management expressed caution about the impact of ongoing geopolitical tensions in Iran, which could increase fixed operational costs such as utilities.
