Fast Retailing, the operator of Uniqlo stores, reported third-quarter earnings that missed estimates Thursday, as weaker sales in China weighed on the Japanese apparel maker’s performance.
Operating profit in the three months ended May was ¥146.7 billion ($1 billion), trailing a ¥150 billion average of analyst estimates compiled by Bloomberg. Its net income amounted to ¥105.5 billion during the period.
Third-quarter revenue in mainland China declined by approximately 5% from a year earlier, while operating profit decreased by around 3%, the company said. The apparel maker had in April raised its full-year forecast, counting on demand for its Uniqlo brand of clothing in newer markets beyond the traditional strongholds of Japan and China.
The retailer kept its full-year operating profit forecast of ¥545 billion.
Fast Retailing released its earnings after markets closed in Tokyo. Its stock has dropped around 13% this year, partly weighed down by U.S. President Donald Trump’s tariffs. Earlier this week, Trump said he will slightly raise across-the-board tariffs on Japan to 25% starting on Aug. 1.
The impact of U.S. tariffs on the company’s operating profit for the second half of the year will be approximately 2% to 3%, based on the assumption that they remain at the previously announced level, Chief Financial Officer Takeshi Okazaki had said in April.
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