Uniqlo owner Fast Retailing reports jump in quarterly profit, raises annual forecast
It benefits from strong sales at home, and expansions in Europe and North America
[TOKYO] The Japanese operator of the Uniqlo clothing brand, Fast Retailing, on Thursday (Jan 8) said its first-quarter operating profit jumped 34 per cent from the year before.
It benefited from strong sales at home, and expansions in Europe and North America.
The firm also lifted its annual earnings estimate, predicting a fifth consecutive year of record profit.
The profit for the period from September to November climbed to 205.6 billion yen (S$1.7 billion), beating a consensus estimate of 177 billion yen that was drawn from six analysts polled by London Stock Exchange Group.
The results show that the company has managed to maintain profit growth, despite the US tariffs that have disrupted global trade, and indicate a recovery in its mainland China business, its largest overseas market.
It increased its target for the year from 610 billion yen to 650 billion yen.
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Profit from its domestic business grew 20.6 per cent from the year before, thanks to buoyant demand for sweatshirts and warm inner wear.
The international segment posted a profit growth of 41.6 per cent, due to a recovery in mainland China sales that have been sluggish in recent years, and an aggressive expansion strategy in North America and Europe.
Fast Retailing has long been considered a bellwether for consumer sentiment in Japan, and more recently in China. REUTERS
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