Global Market: Japan's Fast Retailing shares tumble as weak yen warning overshadows profit forecast hike

Shares of Japan's Fast Retailing, the owner of the Uniqlo clothing brand, fell sharply on Friday after the company raised its full-year profit forecast but cautioned that the weak yen could weigh on its domestic business, according to Reuters.

The stock dropped as much as 5.1% in early trading in Tokyo after the company lifted its full-year operating profit guidance to a record 730 billion yen ($4.50 billion) following the market close on Thursday.

Despite Friday's decline, Fast Retailing's shares have surged more than 42% so far in 2026, reflecting strong investor optimism over the retailer's earnings performance.


According to Reuters, market participants said the sharp rally in the stock over recent months may have already factored in much of the positive outlook, prompting investors to book profits after the latest earnings announcement.

The company reported robust financial results for the nine months ended May, supported by strong demand across key markets.

However, Chief Financial Officer Takeshi Okazaki warned that the continued depreciation of the yen, which remains near a four-decade low, is expected to weigh on sales and profits in Japan during the fourth quarter, as per a Reuters report.

The company indicated that the weak Japanese currency could have a significant impact on its financial performance by increasing costs and affecting domestic profitability.