PARCO Announces Recording of Other Expenses and Revisions to Earnings Forecasts
February 28, 2019
PARCO CO., LTD.
PARCO announced today a decision by its board of directors to revise its full-year consolidated earnings forecasts for FY 2018 (March 1, 2018 – February 28, 2019), announced on October 5, 2018, as laid out in two timely disclosures released today titled, “PARCO to close Utsunomiya PARCO,” and “PARCO to close Kumamoto PARCO.”
PARCO also announced that there will be no change to its annual dividend of ¥24 per share (year-end dividend ¥12 per share) associated with this revision.
1. About Other expenses
As laid out in in two timely disclosures released today titled, “PARCO to close Utsunomiya PARCO,” and “PARCO to close Kumamoto PARCO,” the losses associated with the closure of Utsunomiya PARCO (¥2.2 billion) and Kumamoto PARCO (¥1 billion) will be recorded as Other expenses in Q4 of FY2018 and will include an additional ¥1.3 billion impairment loss from other stores. Based on these figures and recent business trends, PARCO expects total Other expenses of ¥4.5 billion.
2. Revisions to full-year consolidated earnings forecast for FY2018 (March 1, 2018 – February 28, 2019)
Unit: Million yen
| Operating revenue | Operating profit | Profit before tax | Profit attributable to owners of parent | Basic earnings per share (yen) | |
|
Previous forecast (A) (Announced October 5, 2018) |
93,700 | 10,800 | 10,450 | 7,100 | ￥70.04 |
| Revised forecast (B) | 90,800 | 5,100 | 4,700 | 3,100 | ¥30.61 |
| Difference (B–A) | (2,900) | (5,700) | (5,750) | (4,000) | ー |
| % change | (3.1) | (52.8) | (55.0) | (56.3) | ー |
| Reference: FY2017 results | 91,621 | 11,713 | 11,455 | 7,809 | ¥76.97 |
Reasons for revisions
Operating revenue is projected to be ¥2.9 billion less than the previously announced figure, due to the effects of intensifying competition and sluggish performance by PARCO’s apparel-focused shops and Group retail businesses during the New Year’s holiday period. In consideration of these factors and the above-mentioned expenses, forecasts have been revised downward as follows: operating profit by ¥5.7 billion, profit before tax by ¥5.75 billion, and profit attributable to owners of parent by ¥4 billion.
(Note) The above announcement is based on assumptions made by PARCO using the most recent available data. Actual results may differ from forecasted figures due to a variety of factors.