UNIQLO Owner Expects 50% Drop in Profit This Financial Year
But recover in Japan and China is faster than expected.
Fast Retailing Co. — the owner of Japanese apparel retailer UNIQLO — has now readjusted its financial projections for the rest of the year, lowering its profit outlook as a result of the ongoing coronavirus pandemic.
More specifically, the company now expects an annual operating profit of ¥130 billion JPY, roughly equating to $1.21 billion USD. This marks a 50 percent reduction, as compared to the lesser 44 percent drop previously predicted, which altered due to an operating loss of ¥4 billion JPY ($37,400 USD) in the period between March and May.
Despite these projections, Fast Retailing Co. remains confident as it reports a strong rebound in domestic sales for the month of June in Japan as well as a faster-than-expected recovery in the Chinese market. UNIQLO’s domestic sales — which include online purchases — rose by an impressive 26 percent last month compared to a year earlier, an impressive feat by the retailer following a 57 percent decrease in April followed by being 18 percent down in May. In light of these two recovering markets, the company says it will continue to open more stores globally.
In other business-related news, Brooks Brothers have now secured an interest-free loan of $80 million USD.
