Fast Retailing, a Japanese retail holding company, has witnessed 30 per cent dip in profit to US $ 401 million) for the quarter ended in November. The stock plunged 2.3 per cent to close at 38,140 yen, the lowest level since October 2014, after dropping as much as 7.4 per cent in Tokyo trading.
The retailer reported that its operating profit fell 17 per cent to 75.9 billion yen in the three months ended in November; however its sales increased 8 per cent to 520.3 billion yen, driven by expansion of Uniqlo’s (a wholly-owned subsidiary of Fast Retailing Co.) store-network overseas, the company said in an earnings announcement.
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However, Uniqlo’s too noted that its business in foreign parts tumbled more than expected. Profit in the Greater Chinese market fell short of plans. In Hong Kong and Taiwan, a strong impact was felt from the mainland’s economic slowdown. Same-store sales in Japan, for outlets open for at least a year, were down 2.3 per cent in the first three months of the current financial year, as per Fast Retailing’s update released last month.
Furthermore, seeing the effect of warm weather on sales, Fast Retailing has revised its revenue forecast. Operating profit will now possibly be 180 billion yen in the year ending August 2016 against the company’s projection of 200 billion yen made in October last year. Besides, the company will launch its Spring clothing collection earlier and introduce products that are less “weather-sensitive”, to combat tough market conditions.

















