TOKYO —

Daiei Inc said Friday its consolidated net profit shrank 92.7% in its fiscal first half as the partial sale of a credit card arm weighed on revenue. Net profit fell to 3,356 million yen in the first half ended in August from 46,033 million yen a year before, when the retailer booked massive gains through the sale of shares in OMC Card Inc and Maruetsu Inc, a supermarket unit.

Operating revenue slid 12.3% to 526,281 million yen. Operating profit was down 40% at 3,092 million yen.

In its mainline retail operations, food sales were brisk while sales of clothing, a segment with relatively wide profit margins, were sluggish. The bleak performance of clothing and amusement units also weighed on earnings.

JCN

1 Comments

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  Sarge at 08:24 PM JST - 13th October

  Daiei is in serious trouble.

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