Fast Retailing Feels Japan’s Brexit Sting With Strong Yen
- Company cuts profit forecast on strong yen as sales rise
- Stronger yen eroded Uniqlo-owner’s earnings from overseas
Fast Retailing Beats Estimates But Cuts Forecast
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Billionaire Tadashi Yanai’s Fast Retailing Co. gave an early glimpse of the pain a rising yen is bringing to Japan’s biggest companies since the U.K. voted to leave the European Union last month.
The company’s shares jumped 15 percent, the most since October 2009, after Asia’s largest clothing retailer posted third-quarter sales and operating income that beat analyst estimates. Still, Fast Retailing cut its full-year net income forecast by 25 percent for the year ending August due to an estimated 37 billion yen ($350 million) in foreign exchange loss, it said Thursday.