UNIQLO owner forecasts 50% profit shortfalls in light of the present crisis

Fast Retailing Co., owner of Japanese apparel retailer UNIQLO, has officially readjusted its financial forecasts for the rest of this 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, approximately comparable to $1.21 billion USD. This marks a 50 percent decrease, as compared to the smaller 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 forecasts, Fast Retailing Co. remains positive as it reports a strong bounce 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 comprise online purchases — rose by a notable 26 percent last month compared to a year earlier, an impressive achievement 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.

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