Fast Retailing, which owns fast fashion giant Uniqlo, has cut down its annual profit forecast.
And, it didn’t come as a surprise as COVID-19 restrictions in Japan and other parts of the world have hit the footfall considerably.
With Tokyo Olympics a few days away, the country has already declared a coronavirus state of emergency and restrictions have been tightened.
Owing to this, Fast Retailing now has predicted a rise of 64 per cent to £176 billion in operational profit for year ending in August. That’s US $ 10 billion deduction from the previous estimate.
Here it is important to mention that profits at the Group rose to £149 billion for 9 months ended May 2021.
The 9-month period saw the retailer post revenue growth of 12.7 per cent, with the operating profit jumping by 51 per cent.
The retailer added that strong sales of Uniqlo U T-shirts, Kando pants and other summer ranges, as well as loungewear, super stretch activity pants, improved revenue from March to May 2021.
Notably, its e-commerce revenue also surged as its online sales continued to expand; however, the third quarter Uniqlo Japan performance still fell short of its business plan.