Japanese clothing firm Fast Retailing Co said on Thursday it would open fewer US stores for its core Uniqlo brand this year after a rapid expansion failed to entice customers, leading to a lower-than-forecast annual profit.
Fast Retailing, which is seeking to overtake Zara-owner Inditex and H&M as the world’s biggest fashion retailer, said it would only open five Uniqlo stores in the United States in the fiscal year that began on 1 Sept., after opening just over three times as many stores last year.
Impairment losses worth JPY16.1 billion (USD135 million), related to some of its US Uniqlo stores, as well as its more upmarket J Brand denim label and other brands, contributed to the company missing its own forecast for a JPY200 billion operating profit for 2014/15.
(Source: CNBC)