Uniqlo owner issues profit warning

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Uniqlo Fast Retailing
// Uniqlo’s parent company Fast Retailing issues profit warning after winter discounting
// The retailer carried out heavy discounting on winter items following unexpected warm weather

Uniqlo’s parent company Fast Retailing has issued a profit warning after it was forced to slash its prices on winter clothes following the UK’s unexpected warm weather.

For the full year through to August, Fast Retailing forecast an operating profit of ¥260 billion (£1.79 billion) for Uniqlo, down ¥10 billion (£69 million) on its previous estimate, according to Reuters.

The Japanese retailer said the warm weather pressed Uniqlo to heavily discount its items in order to advance its cold-weather inventory for the downturn.

However, the ¥260 billion profit figure would be a record high for Uniqlo, representing a 10 per cent year-on-year rise, despite the profit warning.

The retailer said its sales and profits for the second quarter of the year had increased by 20 per cent year-on-year to ¥68 billion (£470 million) and were driven by the growth of its online platform.

Meanwhile, Uniqlo has expanded to 633 stores in its home country Japan in the last fiscal year.

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