default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Uniqlo Owner Fast Retailing Cuts Full-Year Outlook

For the full year through August, the retail group forecast an operating profit 10 billion yen below its previous estimate.
Uniqlo store in Osaka, Japan | Source: Shutterstock
By
  • Reuters

TOKYO, Japan — Uniqlo owner Fast Retailing Co. lowered its full-year outlook, hurt by heavy discounts on winter clothes after a warm winter and losses stemming from its weak overseas brands, even as it turned in a better-than-expected second-quarter profit.

For the full year through August, it forecast an operating profit of 260 billion yen ($2.34 billion), versus its previous estimate of 270 billion yen.

The retailer, however, reported a rise in its operating profit for the second quarter to 68 billion yen, from 57 billion yen a year earlier, on growth in China and its online business.

That beat an average estimate of 64 billion from six analysts polled by Refinitiv.

Operating profit for Uniqlo's China business has been growing by double digits in recent quarters despite concerns of a slowing economy. The company expanded to 633 locations in China in the last fiscal year, up 78 stores from a year earlier, while in Japan it went down 4 stores to 827.

Uniqlo has found it tough to cope with unexpected weather patterns in the past few years. After struggling with a shortage of popular winter items in the past, the Japanese company last winter overcompensated by ordering too much inventory.

Fast Retailing posted a surprise drop in profit in the first quarter as unseasonably warm weather hit sales of winter clothes.

By Ritsuko Ando; editor: Himani Sarkar.

In This Article
Topics
Location

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.



The sportswear giant posted flat sales in its latest quarterly report, beating Wall Street expectations. To fully recover, the business must demonstrate greater product innovation, analysts say.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections