logo
Uniqlo owner's profit misses estimates on weak China sales

Uniqlo owner's profit misses estimates on weak China sales

FAST Retailing Co. reported third-quarter earnings that missed estimates, as weaker sales in China weighed on the Japanese apparel maker's performance.
Operating profit was ¥146.7 billion ($1 billion) in the three months ended May, trailing the ¥150 billion average of analyst estimates compiled by Bloomberg. Net income came in at ¥105.5 billion during the period.
Revenue in mainland China declined by approximately 5% for the third quarter from a year earlier, while operating profit decreased by around 3%, the company said. The apparel maker had in April raised its full-year forecast, counting on demand for its Uniqlo brand of clothing in newer markets beyond the traditional strongholds of Japan and China.
Still, the retailer kept its full-year operating profit forecast of ¥545 billion.
The sales drop in China was due to weaker overall consumer sentiment and continuation of low temperatures through early May, Chief Financial Officer Takeshi Okazaki said in a post-earnings briefing Thursday. The company, which is overhauling its China operations, is beginning to see the impact, he said.
'We are implementing a scrap and build strategy to improve operational efficiency of each, individual stores,' Okazaki said. 'We are tailoring our product assortment and store layouts to suit each region. Some stores are seeing 1.5 times higher sales.'
Operating profit of overseas Uniqlo business rose 1.5% to ¥72.1 billion for the three months ended May, while operating profit for the brand in Japan rose 4.7% to ¥52.9 billion for the period, it said.
Fast Retailing released its earnings after markets closed in Tokyo. Its stock has dropped around 13% this year, partly weighed down by President Donald Trump's tariffs. Earlier this week, Trump said he will slightly raise across-the-board tariffs on Japan to 25% starting on Aug. 1.
Still, Fast Retailing revised the impact of US tariffs on the company's operating profit to 1% for the second half of the year. Previously in April, it said the impact was approximately 2% to 3%, based on the assumption that they remain at the previously announced level.
The company is closely monitoring the situation and the balance between price and value of products for US consumers to maintain sustainable business, while securing profits, Okazaki said. –BLOOMBERG
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Dollar strengthens after US and EU agree to tariff deal
Dollar strengthens after US and EU agree to tariff deal

New Straits Times

time2 hours ago

  • New Straits Times

Dollar strengthens after US and EU agree to tariff deal

TOKYO/LONDON: The dollar rose against major peers on Monday after the United States and the European Union struck a framework trade pact, the latest in a flurry of deals to avert a global trade war, with investors also looking to this week's US and Japanese central bank meetings. Meeting in Scotland on Sunday, US President Donald Trump and European Commission President Ursula von der Leyen said the deal provided for an import tariff of 15 per cent on EU goods, half the rate Trump had threatened from Aug 1. That follows last week's US agreement with Japan, while top US and Chinese economic officials will resume talks in Stockholm on Monday aiming to extend a truce by three months and keep sharply higher tariffs at bay. The euro was last at US$1.1693, down 0.4 per cent on the day, reversing an initial knee-jerk rise in Asia trade as investors' focus shifted to what an easing in global trade tensions meant for the dollar overall. "The mood music on US trade negotiations has been a little brighter following agreements with Japan and the EU," said Paul Mackel, global head of FX research at HSBC. "If more 'trade deals' are reached, this could help to reduce this source of policy uncertainty that has weighed against the dollar, at least for now. It could also see other factors such as relative yields becoming more influential." The dollar tumbled sharply earlier this year, particularly against the euro, as fears that dramatically higher tariffs on trade with most of its major partners would hurt the US economy caused investors to consider shifting out of US assets. Normally, the gap between yields on government bonds is a major factor for currency moves, but at present the euro is meaningfully higher than the gap between US and euro zone yields would imply. The euro was also last down slightly on the yen and sterling, having hit a one-year high on the Japanese currency, and a two-year high on sterling at the start of trade. The dollar was stronger elsewhere, up 0.15 per cent on the yen at 147.83, while the pound was down 0.13 per cent at US$1.3428. As concerns subside about the economic fallout from punishing tariffs, investor attention is shifting to corporate earnings and central bank meetings in the United States and Japan in the next few days. Both the Fed and the Bank of Japan are expected to hold rates steady at policy meetings this week, but traders will watch subsequent comments to gauge the timing of the next moves. Investors will also be watching to see Trump's reaction to the Fed's decision. The US President has been putting the Fed under heavy pressure to make significant rate cuts, and Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow. In cryptocurrencies, ethereum jumped 1.7 per cent and reached as high as US$3,940.25, the most since Dec 2024.

Toyota's internal inertia slows digital shift to rival Tesla and BYD
Toyota's internal inertia slows digital shift to rival Tesla and BYD

The Star

time5 hours ago

  • The Star

Toyota's internal inertia slows digital shift to rival Tesla and BYD

Inside Toyota Motor Corp, a group of employees are worried about the company's future in an era when a car's software matters just as much as its sheet metal. The world's biggest automaker is known for churning out reliable cars like clockwork, but it's been struggling to keep up with Elon Musk's Tesla Inc, China's BYD Co and other frontrunners in the industry's shift toward electric vehicles with sophisticated software. A somewhat obscure Toyota business unit called the Digital Transformation Promotion Department aims to change that. Established four years ago at the behest of then-chief executive officer and now chairman Akio Toyoda, the little known group's mandate is to bring the carmaker up to speed by modernizing it from within. The division's rank-and-file members are drawn from a wide cross-section of the corporate flow chart – everyone from R&D technicians to blue collar mechanics on factory floors. They all share a broad vision to introduce a more digitised future to a company with a stubbornly analogue culture. While they've managed to foster some changes, Toyota's core competency remains very much in hardware – with one foot in the world of EVs and its other planted in gas-powered cars. That cautious approach has been key to the Japanese automaker's success so far. Yet it's also a source of frustration for some inside and outside the company who are pushing for quicker progress. "Toyota sees the importance of software, but it's still slow,' said Kani Munidasa, chief executive officer of Code Crysalis, a Tokyo-based startup that's working with Toyota to put workers through Silicon Valley-style coding boot camps. Lukewarm commitment Some advocates for a software-led rethink at Toyota have grown disillusioned by what they see as a lukewarm commitment to reform from within, according to people familiar with the matter. They point to a recent decision to fold the Digital Transformation Promotion Department into a larger business unit, threatening to short-circuit its mission as a change agent. The division, which previously reported directly to chief executive officer Koji Sato, was absorbed by the Digital Information and Communication Group "to accelerate the internal promotion of digital transformation,' Toyota said in a statement. "We aim to create new value and transform business by accelerating collaboration among the various infrastructures and the use of AI,' it said. In some ways a similar fate befell Toyota's effort to create a digitally-focused, quasi-independent subsidiary called Woven. Despite bold ambitions to usher in a "software-first' approach to car manufacturing, in the end Woven was quietly folded back into the corporate mothership in September 2023 after its American executive departed and its portfolio was downsized. While Toyota's software team isn't directly involved in the development of the cars it sells, they've undertaken a number of projects focused on the company itself. That includes creating a database to keep track of the company's fleet of test cars, overhauling a system employees use to apply for time off, replacing white boards with touchscreens on factory floors and deploying robots to deliver medicine inside Toyota's 527-bed company hospital in Aichi prefecture, according to people familiar with the matter. Another project involved extending access for remote workers to computer assisted design software using a virtual desktop infrastructure in partnership with Nvidia Corp. "Moving forward, our plan is to roll out similar systems not only to Toyota Motor but also to Toyota group companies,' Masanobu Takahisa, a Digital Transformation project general manager, was quoted as saying in a 2021 press release about the campaign. Those efforts might not be transformative, but they're notable in a company where scissors are banned in the office out of an abundance of safety-minded precaution, and erasable billboards are still used to keep employees informed at factories. Looming 'digital cliff' Toyota isn't unique among Japanese companies. While the country dominates in some high-tech fields such as industrial robots, its business culture is known for clinging to fax machines and other bygone technologies. The government in Tokyo has warned about failing to surmount what it terms a "digital cliff' separating Japan from other advanced economies. In March 2021, sitting across from union members during the final round of annual wage negotiations, Toyoda, scion of the founding family and then CEO, said he wanted to break down internal information silos and put the automaker's digital innovation on par with top global companies within three years. "Inside Toyota, it's still the case that only people 'in the know' are considered valuable, and that knowledge only belongs to a small group,' he said. "By moving forward with our digital transformation, we can rid ourselves of that inequity and build an environment where its easier for everyone to focus on their work.' The Toyota City-based carmaker hatched the Digital Transformation division to heed that call with a team of innovative minds looking to break down antiquated systems and practices. The idea was that, if all went well, that reform agenda would rub off on other parts of the company, boosting resiliency and productivity. But the progress has been piecemeal and the division is far from achieving its longterm goals, the people familiar said. Former employees who spoke anonymously with Bloomberg described a workplace bound by conformity, with a paternalistic bureaucracy that values harmony over new ideas. One ex-employee joined Toyota because they were interested in autonomous driving, but instead felt trapped for several years doing quality control on mundane electronic parts. Toyota's global success – its record as the world's biggest automaker for five consecutive years and its status as Japan's biggest and most important company – has arguably created a self-enforcing inertia. Talk among employees of transferring or quitting usually triggered the same reaction: Why would anyone want to leave? It's not the only legacy carmaker struggling to adapt to modern technology. Volkswagen AG's Cariad software unit has been downsized following glitches and delays, while Ford Motor Co. recently downgraded its next-generation advanced software project known as FNV4 by merging it with an existing architecture platform. That speaks to a larger issue involving the industry's ability to innovate fast enough to compete with the likes of Tesla and China's Xiaomi Corp as well as Big Tech, which has moved aggressively into automotive dashboards with popular features such as Apple Inc's CarPlay and Alphabet Inc's Google Android operating system. Reinvention won't come easy for established automakers, said John Murphy, a senior automotive analyst at Bank of America Corp. "It goes into structures, platforms, technology – sort of the whole integrated operating system of a vehicle, I think, needs to be done differently,' he said. "It's an uphill battle.' – Bloomberg

Napino Tech Ventures and Teksun Launch Rapidise with $4M Seed Funding to Accelerate AIoT Product Innovation and Electronics Manufacturing
Napino Tech Ventures and Teksun Launch Rapidise with $4M Seed Funding to Accelerate AIoT Product Innovation and Electronics Manufacturing

Malaysian Reserve

time5 hours ago

  • Malaysian Reserve

Napino Tech Ventures and Teksun Launch Rapidise with $4M Seed Funding to Accelerate AIoT Product Innovation and Electronics Manufacturing

SAN FRANCISCO and NEW DELHI, July 28, 2025 /PRNewswire/ — Napino Tech Ventures Pvt. Ltd. (NTV) and Teksun Microsys Pvt. Ltd. have launched Rapidise Technology Pvt. Ltd. (RTPL) with $4 million in seed funding, aimed at transforming how AI-enabled connected devices are designed, engineered, and manufactured at scale. Rapidise serves as a one-stop Original Design Manufacturer (ODM) for startups, SMBs, and enterprises developing next-generation, AI-powered products. As an ODM, Rapidise not only manufactures but also designs, prototypes, certifies, and manages the full product lifecycle, enabling customers to focus on branding and market strategy while Rapidise delivers turnkey innovation. 'Rapidise unites best-in-class product engineering with scalable manufacturing to accelerate AIoT innovation,' said Vaibhav Raheja, Board of Director at Rapidise and at Napino Auto. Strategic Vertical Integration for Scale Rapidise integrates product design and engineering expertise from Teksun with Napino group's advanced electronics manufacturing infrastructure in India. This vertical integration supports rapid innovation and high-volume production for sectors such as automotive, healthcare, industrial, and consumer electronics. The company has already delivered over one million smart IoT devices and holds $81M+ in booked orders across North America, Europe, the Middle East, and APAC. 'Our vision is to be a world-leading ODM player, recognized for innovation, agility, and commitment to empowering intelligent, high-performance solutions,' said Brijesh Kamani, Founder and CEO of Rapidise. 'By combining engineering and manufacturing under one roof, we're ready to power the next generation of AI-enabled IoT products.' Global Manufacturing Excellence Headquartered in India, Rapidise operates fully automated, Japanese SMT lines (Class 7 Clean Room), Camera Module Manufacturing (Class 6 Clean Room), AI-powered PCB assembly lines, mechanical tooling, and full box-build assembly infrastructure. This enables the production of complex electronics, including: IoT modules and gateways Camera modules, dash cameras, and body-worn cameras 5G-enabled surveillance systems and automotive edge AI devices Infotainment devices, smart TVs, and mobile phones Smart Devices for Agri-tech, Fin-tech, Utilities and Industry 4.0 Applications Faster Go-To-Market with ODM Marketplace With 300+ R&D engineers and modular, production-ready platforms (RISE IoT Modules), Rapidise accelerates custom IoT, AI, and connected solution development. This reduces engineering risk and shortens time-to-market. 'We're transforming how products are built — from concept to mass production,' said Ashish Chinthal, Chief Business Officer at Rapidise. 'Our self-service platform delivers instant quotes for engineering and manufacturing, enabling on-demand ODM services that are faster, more accessible, and fully transparent.' Strategic Semi-Conductor Ecosystem Partnerships Driving AI Innovation Rapidise collaborates with leading semiconductor and connectivity companies to integrate advanced AI, connectivity, and edge processing into its platforms. These partnerships accelerate innovation at the intelligent edge, enabling customers to launch connected products faster and at scale. 'The collaboration showcases how ecosystem partnerships can accelerate scalable AI innovation. It's a strong example of India-led co-innovation powering intelligent edge solutions globally,' said Manmeet Singh, Senior Director & India Business Head of Automotive, Connectivity, Broadband & IoT, Qualcomm India. Rapidise Snapshot HQ in India with global presence (US, EU, APAC) 300+ engineers in electronics hardware, embedded software, cloud, AI, and manufacturing Strategic partnerships with Qualcomm to co-develop AI-ready connected solutions Turnkey delivery: Design → Prototype → Certification → Manufacturing → Support For more information, visit or contact info@ Photo:

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store