Chiyoda's share price sharply reversed lower following the release of its first-half results, setting a new year-to-date low. The full-year forecast was also revised to a level well below the previous forecast, and net profit has been sharply reduced.
Chiyoda reported its first-half results at the end of last week, posting operating profit of ¥560 million, down 59.6% year on year. This was well below the previous upside forecast of ¥1.5 billion.
Weak growth in same-store sales and higher markdown rates to clear inventory were cited as factors behind the deterioration in earnings. The full-year forecast was revised down from the previous ¥1.4 billion to ¥460 million, representing a projected decline of 57.8% from the previous fiscal year. In addition, the company will record an impairment loss on certain fixed assets, and full-year net profit has been sharply reduced from ¥1.1 billion to ¥10 million.