On the 25th, Kintetsu Department Stores announced that it would record an extraordinary loss of 1.129 billion yen in its consolidated and non-consolidated financial statements for the second quarter of the fiscal year ending February 2014. The company recognized signs of impairment due to a decline in market value of business assets, including land and buildings owned by the company in Tenri City, Nara Prefecture, and Beppu City, Oita Prefecture. The extraordinary loss was recorded after reviewing the recoverability of these assets in accordance with the Accounting Standard for Impairment of Fixed Assets. At the same time, the company also revised its consolidated and non-consolidated financial forecasts for the second quarter of the fiscal year ending February 2014, which were announced on April 10th of this year. Consolidated sales have been revised from the previously announced 136 billion yen to 134 billion yen, operating profit from 800 million yen to 400 million yen, ordinary profit from 400 million yen to 170 million yen, and quarterly net profit from a 400 million yen profit to a 1.1 billion yen loss.

The reason for the revision is that sales at Abeno Harukas Kintetsu Main Store increased by only 22.9% compared to the same period last year. Although the expansion of the Abeno Harukas Kintetsu Main Store Tower, which opened on June 13th, did have an effect, the temporary stores at the existing Abeno Harukas Kintetsu Main Store Wing Building and the partial operation of escalators and elevators have caused inconvenience to customers when shopping, leading to a revision of the earnings forecast.

The full-year earnings forecast will be announced at the time of the second-quarter financial results announcement on October 8th, after carefully examining the current situation and the sales forecast for the Abeno Harukas Kintetsu Main Store Wing Building, whose upper floors will be reopened after renovation on October 10th.