Fast Retailing, the company which owns fast fashion chain Uniqlo, said that it expected its profits to fall next year as global competition toughens.
The Japanese company said it expected operating profit to fall 14.3% to 113.5bn yen (£875m) for the year to August next 2011, despite managing a 21.9% increase in operating profit in the year ending this August.
The company said that as well as increasingly intense competition in its international markets, consumer spending in its home market was falling steadily. Sales in its home market fell 24.7% in September.
Fast Retailing has more than 800 stores in Japan and around 150 internationally, including 14 in the UK, all in the south-east.