Fast Retailing cuts earnings forecast on Hong Kong, South Korean woes
Fast Retailing, parent of the Japanese fast-fashion retailer Uniqlo, has reduced forecasts for its full-year operating profit by 11 per cent.
The Japanese company says its business has been adversely affected by protests in Hong Kong and a trade war between Japan and South Korea that resulted in a boycott of Japanese products in a territory that contains the most Uniqlo outlets in a single territory after China.
“Korea is a very important segment for us, and it’s not clear how long this situation will continue,” said Fast Retailing CFO Takeshi Okazaki.
Fast Retailing has reported consistently increasing earnings since 2016 – until now. In the current financial year’s first quarter, sales dropped by 3.6 per cent, while its international operating profit fell 28 per cent.