Fast Retailing Co. shares
9983,
fell sharply Friday morning after its first-quarter net profit dropped 9.1% from a year earlier due to higher costs and weaker sales in China.
The shares were recently 6.9% lower at 74,340 yen after falling as much as 7.1% earlier.
The owner of Uniqlo said that net profit for the quarter ended Nov. 30 fell to Y85.07 billion ($657.9 million) from Y93.59 billion during the same period a year earlier. That fell short of the estimate of Y90.92 billion taken in a poll of analysts by FactSet.
The Japanese apparel retailer said that while revenue climbed 14% from a year earlier to Y716.39 billion, cost of sales and selling, general and administrative expenses increased more sharply, dragging on its bottom line.
Meanwhile, Uniqlo revenue for China, Hong Kong and Taiwan fell 3.2% to Y146.72 billion due partly to COVID-related restrictions, though revenue for other reported regions and segments increased.
Fast Retailing maintained its revenue and net-profit forecasts for the fiscal year ending in August. It continues to expect that revenue will increase 15% to Y2.650 trillion and that net profit will drop 16% to Y230.00 billion.