Rocky Swift
TOKYO (Reuters) – Japan’s Fast Retailing Co, owner of clothing brand Uniqlo, on Thursday raised its profit forecast for a third straight year of record profits, buoyed by strong sales at home and in some overseas markets.
The company raised its operating profit forecast for the full year through August to 475 billion yen ($2.94 billion) from the previous 450 billion yen, citing strong performance since the second half.
“Solid results were driven by UNIQLO Japan and UNIQLO International 1, which performed strongly in North America, Europe and Southeast Asia,” the company said in a statement.
Uniqlo is known for its high-quality, affordable basics, while Fast Retailing has benefited from the yen’s depreciation to a 38-year low, which has boosted the value of its overseas sales.
The company is charting an aggressive growth trajectory in Greater China, North America and Europe, capitalizing on a post-pandemic shift among many consumers toward value rather than luxury.
Fast Retailing has more than 900 stores in mainland China and is a leading global retailer operating in the world’s second-largest economy.
Operating profit rose 31% to 144.7 billion yen in the three months to May 31 from a year earlier, beating the consensus forecast of 127.1 billion yen, according to a survey of six analysts by London Stock Exchange Group. .
The company said its Greater China operations saw lower revenue and sharply lower profits during the nine-month period, in part due to last year’s strong performance and a general slowdown in consumer demand.
Fast Retailing’s shares have risen about 26% so far this year, roughly in line with gains in the benchmark index.
(1 USD = 161.7100 yen)
