Fast Retailing forecasts 40.8 percent drop in annual operating profit as stores remain closed

Uniqlo parent Fast Retailing has forecasted a 40.8 percent drop in annual operating profit as 412 stores remain closed amid the coronavirus outbreak. The company said it may need to make further revisions to its outlook depending on when the situation is brought under control around the world.

Currently Uniqlo closed 244 stores in Asia, Australia and India, 97 stores in Europe, 62 in North America, 5 stores in Mainland China, and 4 in its home market of Japan as of 7 April.

In a statement on Thursday, Fast Retailing said: “Given our inability to rationally estimate when the COVID-19 virus will run its course in each individual market, it is difficult to accurately calculate business estimates at this point in time.”

“These revised estimates have been calculated after taking into account actual business performance for the month of March and assuming that the adverse impact of COVID-19 will continue to cause a sharp decline in revenue in the months of April and May before operations gradually start to return to normal from June onwards.”

Image via Uniqlo