Uniqlo’s Parent Surges 31% in Q3 Profit, Raises Full-Year Forecast

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Japan’s Fast Retailing, the owner of the popular clothing brand Uniqlo, announced on Thursday a 31% surge in its third-quarter operating profit, driven by robust domestic sales. The company’s profit climbed to 144.7 billion yen ($894.81 million) for the three months ending May 31, up from 110.3 billion yen in the same period last year, surpassing the consensus forecast of 127.1 billion yen based on a poll of six analysts by LSEG.

Fast Retailing also increased its full-year profit forecast from 450 billion yen to 475 billion yen. Known for its high-quality, affordable basics, Uniqlo has reaped the benefits of the yen’s decline to a 38-year low, which has boosted the value of its overseas sales.

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The company is aggressively pursuing growth in Greater China, North America, and Europe, capitalizing on a post-pandemic consumer shift towards value over luxury. With over 900 stores in mainland China, Fast Retailing remains a key player for global retailers in the world’s second-largest economy.

However, operations in Greater China experienced a revenue decline and a significant drop in profit over the nine-month period, attributed to a strong performance the previous year and a general slowdown in consumer demand. Despite these challenges, Fast Retailing’s shares have risen about 26% this year, aligning with the advance in the benchmark Nikkei gauge.

This story has been corrected to reflect the profit gain as 31% from the initially reported 29%.