Fast Retailing’s first-quarter group profits have dived after mild weather hampered sales at its Uniqlo business.
Operating profits fell 17% to ¥75.9bn (£440m) in the three months to the end of November, the Japanese group said. Global sales rose 8.5% to ¥520.3bn (£3.04bn).
However, Fast Retailing said warm weather in November hit sales in Japan, China, South Korea and the US.
It led the business to cut its full-year profits forecast to ¥180bn (£1.05bn), down from last October’s estimate of ¥200bn (£1.17bn).
Uniqlo’s Japanese arm had a particularly weak performance. Sales fell 0.7% year on year, while operating profit fell 12.4%.
According to the retailer, a November heatwave in Japan impacted sales, while mild weather also hit profits across Uniqlo’s stores in South Korea and China.
Uniqlo is also struggling to penetrate the US market, where its operating profits continue to be down. The retailer is overhauling its strategy to focus on store estates in major US cities and investment in its ecommerce operations to combat the losses.
The majority of Fast Retailing’s retail brands reported losses – Comptoir des Cotonniers, J Brand and Princesse Tam Tam were all down year on year.