Sanyo Shokai Ltd.8011
▼ NegativeCapitalrelevance
Company cut interim forecast to net loss due to weak June sales, despite buyback announcement.
Impact on stocks 1
Consumer Discretionary
Sanyo Shokai Ltd.Sanyo Shokai announced on the 28th that its consolidated results for the March-August period, the interim term of fiscal 2026, are likely to show a net loss of 480 million yen. Previously, the company had expected a profit of 40 million yen, but the loss will widen from the 299 million yen loss in the same period last year. In June, at the end of the spring/summer sales season, unfavorable weather continued, dragging down the overall market, and the company's sales for that month were only 90% of the previous year's level, causing a significant deterioration in operating results. Although the company curbed the scale of discount sales in the inventory clearance sale from July onward, resulting in a significant improvement in gross profit compared to last year, it could not recover from the June slump. The operating loss has been revised from a projected profit of 100 million yen to a loss of 400 million yen. The full-year forecast for the fiscal year ending February 2027 remains unchanged. In addition, the company resolved to buy back its own shares up to 2.7 million shares, equivalent to 9.2% of issued shares, for approximately 5.8 billion yen.
Sanyo Shokai Ltd.Company cut interim forecast to net loss due to weak June sales, despite buyback announcement.