Uniqlo parent company Fast Retailing and 7-Eleven operator Seven & i Holdings are expected to say they have been facing headwinds when they report their latest earnings next week, Bloomberg reported Thursday (Jan. 2).
Bloomberg said this while reporting analysts’ forecasts for these and other companies that are set to launch the earnings season in Asia next week.
Fast Retailing may report a softening in operating profit growth because of sales of winter clothing being dampened by warmer autumn-winter weather during the quarter ended in November, according to the report. Analysts also noted that Fast Retailing may be challenged by higher store rents and by efforts on Chinese social media to launch a boycott of Uniqlo products.
Seven & i Holdings may report a third consecutive quarter of declining operating profits, despite an improvement in global in-store same-store sales, the report said.
Samsung Electronics, another Asian company set to report earnings next week, is expected to say its operating profit recovered during the quarter, per the report. The recovery is expected to be driven by demand for the company’s chips used for artificial intelligence applications.
Tata Consultancy Services is forecast to report a six-quarter high in profit growth due to demand for software services, according to the report. The company has been hiring to meet an expected resurgence in tech spending. Analysts told Bloomberg they will be listening for the company’s commentary on 2025 budgets, with some expecting that President-Elect Donald Trump’s promised corporate tax cuts will prompt more tech spending, and others believing that his “America First” policies will discourage outsourcing.
It was reported in November that Seven & i has been considering buyout proposals because it has been under pressure from shareholders for years, with some seeking a breakup of the company due to the poor performance of its supermarkets.
Uniqlo has been working to secure its place in the world of fast fashion amid growing competition and an increasing interest among consumers in gaining the most value for their buck. The company has sought to hold on to these shoppers by selling good-quality apparel at affordable prices.
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