Japan’s Fast Retailing, proprietor of casual clothing network Uniqlo, estimates a 44% fall in full-year (September-August) profit after the coronavirus pandemic hit sales in China and faced a setback to its ambitions of conquering the western markets.
The pandemic briefly dented Uniqlo’s supply network all through China and forced it to close over half of its 750 outlets in the nation, the corporate’s largest growth market in recent times.
Fast Retailing is now dependent on its Asian growth, particularly in China, where Uniqlo’s mix of inexpensive basics and occasionally stylish items proved an enormous hit among the burgeoning middle class.
Most outlets in China have reopened, and business has begun to recover, the corporate stated.
However, because the pandemic has expanded to more markets, it stated it was onerous to precisely forecast the full impact on its business, warning further revisions could also be vital.
Uniqlo shut around 170 outlets in its domestic market this week after the Japanese authorities declared a state of emergency. The company estimated an operating profit of 145 billion yen ($1.33 billion) in the full year through August end, down from a previous estimation of 245 billion yen and 44% lower than a year earlier.
It has briefly shuttered outlets all through the U.S. and Europe, markets where it’s trying to catch up with greater rivals such as Sweden’s H&M.