Fast Retailing Hikes Annual Forecast After Quarterly Profits Surge

The Japanese operator of the Uniqlo clothing brand, Fast Retailing, on Thursday said its first-quarter operating profit jumped 34 percent from a year earlier as 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.

Profit for the period that ran from September to November climbed to 205.6 billion yen ($1.3 billion), beating a consensus estimate of 177 billion yen that was drawn from six analysts polled by LSEG.

The results show the company has managed to maintain profit growth despite 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 to 650 billion yen from 610 billion yen.

Profit from its domestic business grew 20.6 percent from a year earlier thanks to bouyant demand for sweatshirts and warm innerwear.

The international segment posted profit growth of 41.6 percent 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.

By Anton Bridge

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