Uniqlo Owner Warns Of Price Hikes As Trump Tariffs Start To Bite
The post Uniqlo Owner Warns Of Price Hikes As Trump Tariffs Start To Bite appeared on BitcoinEthereumNews.com. Fast Retailing has confirmed that U.S. tariffs will lead to price increases. getty Uniqlo owner Fast Retailing said Thursday that higher U.S. tariffs would start impacting its North American operation significantly from later this year and said that it planned to hike prices as a result. Despite what is expected to be a record year for the Japanese fashion retailer, with Fast Retailing pointing to significant international sales growth, including in the U.S., a slowdown in China and trading disruption in North America threatens to hit trade and pricing. Altogether, the company said that it expects the tariffs will reduce profits by 1% in fiscal 2025, after Fast Retailing shipped products early to mitigate the impact. Earlier this week, in his latest announcement, U.S. President Trump set a new August 1 deadline for “reciprocal” tariff rates, which will affect nearly all trading partners. “It is unavoidable that we will be significantly affected from autumn and winter,” Fast Retailing Financial Officer Takeshi Okazaki conceded in Fast Retailing’s quarterly earnings conference. “It will be difficult to absorb all costs. Our approach will be to raise prices where possible and not where it isn’t possible, while ultimately focusing on creating a sustainable business that securely generates profits.” The majority of Uniqlo apparel sold in the U.S. is produced in Southeast Asia and South Asia and this week Trump notified major source market Sri Lanka that it would be hit by a 30% tariff from August 1, while its competitor Vietnam – which at one point was facing crippling tariff levies – now should see a lower 20% U.S. tariff. Uniqlo Parent Earnings For the current fiscal year to end-August, Fast Retailing kept its operating profit forecast at $3.7 billion, as it expected limited tariff impacts thanks to early shipments to the U.S. market…
The post Uniqlo Owner Warns Of Price Hikes As Trump Tariffs Start To Bite appeared on BitcoinEthereumNews.com.
Fast Retailing has confirmed that U.S. tariffs will lead to price increases. getty Uniqlo owner Fast Retailing said Thursday that higher U.S. tariffs would start impacting its North American operation significantly from later this year and said that it planned to hike prices as a result. Despite what is expected to be a record year for the Japanese fashion retailer, with Fast Retailing pointing to significant international sales growth, including in the U.S., a slowdown in China and trading disruption in North America threatens to hit trade and pricing. Altogether, the company said that it expects the tariffs will reduce profits by 1% in fiscal 2025, after Fast Retailing shipped products early to mitigate the impact. Earlier this week, in his latest announcement, U.S. President Trump set a new August 1 deadline for “reciprocal” tariff rates, which will affect nearly all trading partners. “It is unavoidable that we will be significantly affected from autumn and winter,” Fast Retailing Financial Officer Takeshi Okazaki conceded in Fast Retailing’s quarterly earnings conference. “It will be difficult to absorb all costs. Our approach will be to raise prices where possible and not where it isn’t possible, while ultimately focusing on creating a sustainable business that securely generates profits.” The majority of Uniqlo apparel sold in the U.S. is produced in Southeast Asia and South Asia and this week Trump notified major source market Sri Lanka that it would be hit by a 30% tariff from August 1, while its competitor Vietnam – which at one point was facing crippling tariff levies – now should see a lower 20% U.S. tariff. Uniqlo Parent Earnings For the current fiscal year to end-August, Fast Retailing kept its operating profit forecast at $3.7 billion, as it expected limited tariff impacts thanks to early shipments to the U.S. market…
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