Expected to be in the red for 4 consecutive years due to sluggish sales of major apparel “Sanyo Shokai” October 30th 17:57

Sanyo Shokai, a major apparel company, has announced that it will have a net loss of 1.5 billion yen in the next fiscal year. Due to sluggish sales to major department stores, the company will be in the red for the fourth consecutive year.

Sanyo Shokai initially anticipated a net profit of 700 million yen for the fiscal year ending February next year.

However, due to continued sluggish sales at department stores, which are our main sales destinations, and due to the closure of stores due to successive typhoons, the current sales are 20% lower than the initial plan.

For this reason, we have revised down our earnings forecast for the fiscal year ending February 28, 2008, assuming that the final profit and loss will be 1.5 billion yen deficit from the initial forecast of 700 million yen.

Sanyo Shokai has suffered from poor performance after the license agreement with the famous British brand “Burberry” expired in 2015, and the last deficit will be the fourth consecutive year.

In response to this, Sanyo Shokai decided that Mr. Isao Iwata retired as a non-representative director and promoted Masayuki Nakayama to become president.

In the apparel industry, “ONWARD” has announced a policy of closing about 600 stores, and “RENAUN” has been struggling with companies whose main customers are department stores, such as reviewing stores and considering personnel reductions. It is.