J. Front 20 billion yen final deficit March-May Impact of suspension of new Corona June 29, 18:03

J. Front Retailing, which operates major department stores Daimaru and Matsuzakaya, is the final result of the three-month settlement of accounts from March to May due to a series of store closures due to the spread of new coronavirus infections. Became a deficit of over 20 billion yen.

According to J. Front Retailing's announcement on the 29th, according to the financial results for the three months from March to May, sales were 43,400 million yen, 43% down from the same period of the previous year. The final loss was 20.3 billion yen.

This is because most stores nationwide have been temporarily closed since April due to the spread of infection.

The company resumed operations in stages toward the end of May, but it is expected that the slump in sales will continue for the time being, and the forecast for 1 year until February next year has been revised downwards, with a profit forecast of 5 billion yen. Profit/loss is expected to be a deficit of 26 billion yen.

This is the first time since J. Front Retailing was established in 2007 if the final profit or loss was in the red for the full year.

In response to the deterioration in business performance, the company has decided to reduce the remuneration of 54 executives, including group companies, by 10% for three months from July.

Furthermore, in order to secure a larger amount of cash at hand in preparation for the prolonged impact, it was revealed that a total loan amount of 300 billion yen has been set for banks with transactions.