Fast Retailing Co. said Thursday it has cut its full-year group net profit forecast to 165 billion yen ($1.51 billion) from its previous estimate in October of 175 billion yen as prolonged protests in Hong Kong and a boycott of Japanese goods in South Korea hit sales.

The operator of the Uniqlo casual clothing chain said its group net profit in the September-November quarter fell 3.5 percent from a year earlier to 70.91 billion yen.

Operating profit dropped 12.4 percent to 91.69 billion yen in the first quarter, on sales of 623.48 billion yen, down 3.3 percent.

Chief Financial Officer Takeshi Okazaki said its stores in Hong Kong and South Korea registered red ink, adding warmer-than-usual weather in Japan and other parts of Asia during the three months weighed on demand for winter clothing.

Okazaki also said the retailer is "concerned about the growing tensions between the United States and Iran."

During the three months, the domestic business logged an operating profit of 38.5 billion yen, up 1.6 percent from the same period a year earlier, on sales of 233 billion yen, down 5.3 percent.

Its operating profit overseas dropped 28.0 percent to 37.8 billion yen, on sales of 280.7 billion yen, down 3.6 percent.

"The stronger yen against the Chinese yuan also decreased our profits in the Chinese market," he said.

==Kyodo

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