Japanese fashion retailer Uniqlo has released its interim report, indicating that it expects the U.S. tariffs will result in a 2-3% decline in profit for the remainder of the fiscal year.
Most Uniqlo products sold in the U.S. are manufactured in Southeast Asia, in regions facing tariffs of up to 49%. Despite the 90-day pause, Uniqlo is preparing for a profit loss of $68 million in the second half of the year.
Japan’s richest man, Tadashi Yanai, founder and CEO of Uniqlo’s parent company Fast Retailing, told investors, “We will continue to assess the situation from next fiscal year onwards and respond appropriately… As for the current tariffs, I think they are unreasonable given the current international situation and probably won’t last.”
Company CFO Takeshi Okazaki informed investors, “A significant amount of goods have already arrived in the U.S., so … we expect the impact of the tariffs to be limited.”
Despite lowering its profit forecast, Fast Retailing reported an interim operating profit of 146.7 billion yen for the three months ending in February, up from 110.4 billion yen for the same period the previous year.
Uniqlo operates 97 stores across Canada and the U.S. and intends to open 25 new outlets in the region during the current fiscal year.
By CEO NA Editorial Staff
