Uniqlo-owner Fast Retailing has booked a 42.9% fall in profits for the nine months to May with sales declining 15.2% year-on-year to JPY1.54trn (US$14.3bn).
Net profit amounted to JPY90.6bn for the nine-month period to 31 May. It attributed the declines in profit and revenue “largely on the Covid-19 impact.”
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By unit, Uniqlo Japan saw its sales for the nine months fall 14.6% to JPY598.8bn during the period. Operating profit declined 18.1% to JPY79.1bn.
It was a similar state of affairs at the international arm of Uniqlo where sales fell 17.9% to JPY673.5bn. Operating profit tumbled 58.5% to JPY51.8bn.
Conversely, sales were marginally up at Gu by 1.1% to JPY187.4m. Operating profit, however, slipped 22.2% to JPY20.4bn.
Sales at the Global Brands unit, meanwhile, fell 26.7% to JPY83.3bn. The segment posted an operating loss of JPY6bm, compared to an operating profit of JPY4.6bn in the first nine months of fiscal 2019.
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By GlobalDataFast Retailing has now halved its profit expectation for the year, saying it expects an annual operating profit of JPY130bn. The company forecasts a 13.1% fall in consolidated revenues for the year to JPY1.99trn. Net profit is expected to be 47.7% lower year-on-year at JPY85bn.
