GO
Loading...

Enter multiple symbols separated by commas

Wal-Mart Japan Unit Sees Wider Net Loss in 2006

Wal-Mart Stores' Japanese subsidiary, Seiyu, on Tuesday forecast a wider net loss for 2006 due to sluggish sales, making it its fifth straight year of losses. Seiyu estimated its group net loss at 55.8 billion yen ($459 million) instead of its earlier projection of a 54.5 billion yen loss for the year ended December. The new forecast is in line with a consensus projection by four analysts for 55.6 billion yen, according to Reuters Estimates.

Its 2006 same-store sales showed their first year-on-year rise in 15 years at a 0.6% increase, but spokesman Yasuhisa Nezu said that was below the company's target.

Wal-Mart , the world's largest retailer, owns 53% of Seiyu and sees it as a key to expanding in the Japanese market.

However, the Japanese retailer has yet to return to profitability despite more than $1 billion investments by Wal-Mart since it took a small stake in Seiyu in 2002.

Wal-Mart Vice Chairman Michael Duke told the Nikkei business daily in an interview that the company might look for more acquisition opportunities in Japan, although spokeswoman Amy Wyatt said on Monday it was more focused on expanding business at the Seiyu chain.

Before the announcement, Seiyu shares closed up 2.6% at 195 yen, outperforming a 0.11% rise in the Nikkei average.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video