TOKYO — Fast Retailing Co. Ltd. shares plunged Friday, the day after the company issued full-year results and missed its earning and sales targets.
Fast Retailing shares slumped 9.9 percent to close at 16,040 yen, or $205.04, while the Nikkei 225 index edged down 0.15 percent.
“Earnings have been weak recently, with margins in Japan and overseas sales falling short of company targets. That said, this comes as no surprise to us, because these factors began to materialize in [March to May],” Nomura Equity Research analyst Masafumi Shoda wrote in a note distributed Friday. “We slightly revise down our earnings estimates, but maintain our outlook for medium-term growth.”
While Fast Retailing turned in weaker-than-expected numbers, Goldman Sachs analysts Sho Kawano, Naoki Furukawa and Jingyuan Liu said the company’s Asia growth prospects remain “intact.” Still, they expressed caution about Uniqlo’s corporate parent’s outlook.
“We expect price cuts at Uniqlo Japan to gradually spread overseas, a correct course in our view. We are cautious on [full-year 2013] China sales and gross margins in Japan vs. guidance,” they wrote in a note dated Friday.