It didn’t take long for the impact of the stronger yen, and the weak global economy, to manifest themselves on the company that is Asia largest clothing retailer.

Moments ago, shares of Japan’s clothing empire Fast Retailing, whose most prominent brand is Uniqlo, plunged by 10% sending its stock price to the lowest since June 2013, after the company cut its profit forecast made just four months ago by a third from JPY180 billion to JPY120 billion (well below the JPY169 consensus) a five year low, saying a stronger yen eroded the value of overseas sales and unexpectedly warm winter weather hurt demand for the company’s down coats and thermal underwear. It also announced it would cut its dividend to JPY350/shr vs. JPY370 per the prior guidance.

The sellside, which completely missed the collapse in profits, was quick to come up with a narrative:

Bloomberg adds that billionaire Chairman Tadashi Yanai had bet on expanding the company’s Uniqlo casual clothing brand outside Japan, opening flagship stores in shopping districts from London to Paris, Shanghai, New York and Seoul. The move, prompted by stagnating economic growth in Japan, has made the company more vulnerable to a strengthening Japanese currency.

The yen’s gain, which as reported earlier had wiped out all losses since the expansion of Japan’s QE in October 2014 and is up over 10% in 2016, led to a JPY22.8 yen foreign-exchange loss in the first half, the retailer reported Thursday. Chief Financial Officer Takeshi Okazaki warned that there could be more exchange losses if the yen continues to strengthen.