Newscasts - Uniqlo operator Fast Retailing cuts H2 profit outlook over US tariffs

FAST RETAILING

10/04/2025 15:18

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Source: 'Reuters - Business videos'

Description: The Japanese operator of Uniqlo lowered its second-half underlying profit forecast by 10 billion yen ($68 million) on Thursday on expectations U.S. tariffs will hit the profitability of its fast-growing North American clothing business. Francis Maguire reports.

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Video Transcript:

The Japanese operator of fashion giant Uniqlo thinks US tariffs will bite. Fast Retailing lowered its second-half underlying profit forecast by $68 million on Thursday. It believes the tariffs could hit profitability in its fast-growing North American clothing business. The majority of Uniqlo products sold in the US are produced in Southeast Asia, where garment export hubs were hit with tariffs of up to 49%. Although US President Donald Trump announced a 90-day pause on the duties Wednesday, the move still excluded China. He raised tariffs on Chinese imports to 125% - deepening a trade standoff between both countries. Founder and CEO of Fast Retailing, Tadashi Yanai, said the expansion of garment production beyond China to other Asian countries has helped the firm. It means they can change production sites in response to US tariff policies. But he warned escalating trade wars would be a disaster for many developing countries. Fast Retailing said Thursday it expected the tariffs would lead to a 2% to 3% hit to its consolidated second-half business profit. However, the company raised its full-year operating profit forecast to around $3.7 billion, mainly due to better-than-expected half-year profit. Fast Retailing's share price soared more than 9% Thursday.