TOKYO (Reuters) – A South Korean boycott of Japanese goods is seen dragging down sales at Fast Retailing Co Ltd’s (9983.T) Uniqlo stores, denting otherwise strong financial results due to be announced on Thursday by Asia’s biggest fashion group, analysts said.
But another focus will be on succession plans after founder Tadashi Yanai, Japan’s richest person according to Forbes, turned 70 earlier this year.
Analysts on average expect operating profit of 258.6 billion yen ($2.41 billion) for the year ended August, up 9.5% from a year prior, Thomson Reuters data showed. They see a 14% rise in the current year, helped by strength in China and new markets.
Some have been marking down forecasts since Uniqlo and other Japanese businesses were targeted by South Korean boycotts amid a diplomatic spat – a reminder of risks that come with overseas expansion. The company opened its first store in India last week and is also expanding in markets such as Malaysia and Indonesia.
Source news reuters.com, click here to read the full news.