Fast Retailing Co., Asia's biggest clothing retailer, cut its annual profit forecast for a second time this fiscal year after suffering losses at its J Brand premium denim unit in the United States.
The maker of Uniqlo casual apparel said net income will probably be about ¥78 billion ($768 million) for the year ending August, below its previous forecast of ¥88 billion and missing an ¥88.5 billion average estimate from 18 analysts surveyed.
Fast Retailing, which has been seeking overseas growth amid slowing domestic demand, will record a special loss of ¥10 billion for U.S.-based J Brand and may post an impairment charge for the year as the loss-making business failed to meet its target in the third quarter. J Brand, 80 percent-owned by Fast Retailing, sells its premium denim products in more than 2,000 outlets in the U.S., including department stores.
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