Tokyo, April 14 - Japan's second-largest retailer, Aeon Co Ltd, on Tuesday reported its first annual net loss in seven years, hit by a sales slump and restructuring charges, although the company forecast a return to profit this financial year.
The firm, which runs Jusco supermarkets and Maxvalu retail stores, posted a net loss of 2.76 billion yen ($27.67 million) for the year ended in February, down from a profit of 43.93 billion yen a year earlier.
Aeon has suffered weak sales of clothing and household goods as consumers cut back on spending amid a recession. It has also been hit by the cost of closing unprofitable stores, and a large write-down at its U.S. apparel chain, Talbots.
The company predicted a net profit of 7.5 billion yen to 15 billion yen for the current business year, below a mean forecast of 27.2 billion yen in a poll of 11 analysts by Reuters Estimates.
While Japan's retailers have largely avoided the massive losses suffered by exporters, they have been hit by sharp sales falls, forcing firms to slash prices and cut costs.
Aeon shares have fallen 36.6 percent in the past 12 months, underperforming a 31 percent drop in the benchmark Nikkei average.