Onward Holdings Co., Ltd., a major apparel company, posted its final deficit for the first year until February due to a drop in sales due to the shortened business hours of department stores due to the impact of the new coronavirus.
According to the announcement, the group's financial results for the year ending February were 174.3 billion yen, down 29.8% from the previous year, and the final profit and loss was 23.1 billion yen, the final for the second consecutive year. It became a deficit.
Due to the spread of the new coronavirus infection, department stores were closed and business hours were shortened one after another, and the tendency to refrain from going out became stronger, and demand for clothes decreased and sales fell.
The company posted an extraordinary loss of 5.1 billion yen as an expense to proceed with the sale of its European subsidiaries, etc. in order to recover its business performance.
As for the business results for the year to February next year, sales are expected to increase by 9% to 190.5 billion yen, and the final profit is expected to be 6.3 billion yen, the first profit in three years.
President Michinobu Homoto said at a telephone briefing that "I think the impact of the new Corona will continue, but we will grow online sales and strengthen our lifestyle-related business instead of relying on clothing." He showed his intention to promote good management.