Fast Retailing expects its profits to fall next year as global competition toughens. The Japanese company said it expected operating profit to fall 14.3% to ¥113.5bn (£869m) for the year to August 2011, despite managing a 21.9% increase in operating profit in the year to August 2010. The company said that as well as increasingly intense competition in its international markets, consumer spending in its home market was falling steadily.

Sales in its home market fell 24.7% in September.