Fast Retailing, the parent company of fast clothes behemoth Uniqlo, has reduced its annual profit projection.
It should come as no surprise that COVID-19 limitations in Japan and other areas of the world have had a significant impact on footfall.
With the Olympics in Tokyo just a few days away, the nation has already declared a coronavirus state of emergency and tightened restrictions.
As a result, Fast Retailing now forecasts a 64% increase in operating profit to £176 billion for the fiscal year ending in August. This is a US$10 billion reduction from the prior forecast. It is worth noting that the Group’s earnings increased to £149 billion for the nine months ending May 2021.
During the nine-month period, the retailer’s revenue increased by 12.7%, while its operating profit increased by 51%.
Strong sales of Uniqlo U T-shirts, Kando trousers, and other summer ranges, as well as loungewear and super stretch activity pants, increased revenue from March to May 2021, according to the store.
Notably, its e-commerce income increased as its online sales expanded; nonetheless, Uniqlo Japan’s third-quarter performance fell short of its business objective.