• 9M net profit totals JPY84.8bn (US$837.1m)
  • Sales reach JPY1.09tr
  • Cuts full-year profit outlook

Japanese giant Fast Retailing Co has cut its full-year profit outlook as it recorded a fall in earnings in the first nine months of the year.

In the period to the end of May, net profit totalled JPY84.8bn (US$837.1m). This was a drop of 4.1% on earnings of JPY88.4m a year earlier.

Fast Retailing said the overall performance from its J Brand premium denim label fell short of target in the period, and its low-priced GU casual wear brand did not sell as well as expected.

Group sales, however, reached JPY1.09tr from revenues of JPY885.8bn in the year ago period. Uniqlo International, in particular, reported a particularly strong expansion in both net sales and income over the period. Sales were up 71.3% and operating income up 75.1%.

To account for a potential impairment loss on its J Brand jeans, however, the company lowered its full-year net profit target to JPY78bn from JPY88bn previously. Sales are expected to be up 19.9% to JPY1.37tr.

In the third quarter, net profit was down 11.7% to JPY20.2bn, while sales grew 19.4% to JPY323.6m. Operating income was up 20.9% to JPY33m.

The company's share price was down 1.94% to 32,855 yen at close of trading in Tokyo.