Uniqlo operator Fast Retailing reported plunging profits and lowered its annual profit outlook on Thursday, with the Japanese giant citing the impact of the coronavirus pandemic, which forced lengthy store closures.

The firm now expects annual net profit to August of 85 billion yen (792 million U.S. dollars), down from an earlier projection of 100 billion yen announced in April, and nearly a half of what it earned in the previous year.

Annual operating profit is forecast at 130 billion yen and sales at 1.99 trillion yen, compared with earlier forecasts for 145 billion yen and 2.09 trillion yen respectively.

The revisions were necessary as previous forecasts did not account for the full impact of a state of emergency Japan declared earlier in the pandemic, which forced the firm to shut stores, as well as the slower-than-expected reopening of its branches overseas.

For the nine months to May, Fast Retailing said its net profit plunged 42.9 percent to 90.64 billion yen. Operating profit and sales were also down.

The company reported impairment losses, linked to the declining value of certain assets, of 15.2 billion yen, further driving down its bottom line.

Fast Retailing said it was on track to achieve business targets it set given the tough business climate with cost-cutting, limited discounts and a healthy recovery for operations in Japan and China.