Uniqlo’s operator trims earnings outlook by 11%

Uniqlo’s operator trims earnings outlook by 11%

Japan’s fashion retail giant, Fast Retailing Co., otherwise known as Uniqlo’s operator said that it would lower its full-year outlook on earnings by 11%.

The company’s shares dropped 3.12% in Tokyo on Friday morning following the news.

Fast Retailing Co.’s overseas sales were hurt by the ongoing civil protests in Hong Kong and the trade spat between Japan and South Korea that resulted in a boycott of Japanese goods.

Korea has the second-largest largest number of Uniqlo stores following China. Takeshi Okazaki, Chief Financial Officer of Fast Retailing, said the Korean business has continued to decline and there has been a bigger impact on sales.

The company reported a 3.6% drop in first-quarter sales for Uniqlo’s international segment. Operating profit for the international business also fell 28% and was its first quarterly decline in earnings since 2016.

Fast Retailing has been relying on its strong overseas sales to support its growth, as the Japanese market alone is too weak to support it.