Japan's Fast Retailing warns quake to hit profit

The operator of Japan's cheap-chic clothing chain Uniqlo said Thursday its net profit for the nine-month period ended May fell 20.5 percent, citing a drop in demand following the March 11 disasters. However, Fast Retailing retained its earlier forecasts that see full-year sales edge higher in the fiscal year. The firm reported a net profit of 53.40 billion yen ($676 million) between September and May, compared with 67.18 billion yen in the same period a year earlier. The earthquake, tsunami and subsequent nuclear crisis on March 11 caused temporary closures at many of the company's stores in the affected regions, leading to a steep 10.5 percent fall in Uniqlo domestic same-store sales in March. The company also said low temperatures in the quarter forced it to discount its spring clothing lines, which ate into its margins. About 160 Uniqlo stores out of 842 in Japan were affected by the disaster that ravaged Japan's northeast coast, destroying entire towns and leaving more than 20,000 dead or missing. Four stores remain shut. Fast Retailing has donated 850,000 garments worth 700 million yen to victims and launched a collection of special T-shirts signed by leading international designers. Revenue declined 1.1 percent to 652.02 billion yen from 659.06 billion a year earlier, while operating profit slipped 15 percent to 104.57 billion yen from 123.49 billion. For the full fiscal year ending August, the company retained is earlier forecast of an annual net profit of 60 billion yen -- down 2.7 percent on-year -- on revenue of 836 billion yen, up 2.6 percent on-year.