By Anton Bridge TOKYO, Jan 8 (Reuters) - The Japanese operator of the Uniqlo clothing brand, Fast Retailing, on Thursday said its first-quarter operating profit rose 33.9% from a year earlier as it
Fast Retailing Raises Forecast After Profit Surge
By Anton Bridge
TOKYO, Jan 8 (Reuters) - The operator of the Uniqlo clothing brand, Japan's Fast Retailing, said quarterly operating profit surged by a third and it bumped up its annual outlook, citing robust sales growth globally that helped it absorb U.S. tariffs.
On track for its fifth consecutive year of profit, the company has benefited from a pickup in sales in China - its largest overseas market - as well as an aggressive expansion strategy in North America and Europe.
It opened up major stores in Antwerp, Birmingham and Munich during the quarter. In the U.S., it is planning a string of new flagship stores in Chicago, New York and Boston.
Known for durable basic items and considered a bellwether for consumer sentiment in Japan and in China, Fast Retailing said operating profit climbed 34% to 205.6 billion yen ($1.3 billion) during the September-November period on a 15% increase in revenue.
That easily beat an LSEG consensus estimate of 177 billion yen.
Profit from its domestic business grew 20.6% from a year earlier thanks to buoyant demand for sweatshirts and warm innerwear.
Many overseas markets saw double-digit growth in revenue and profit. Autumn sales in China were strong and the launch of a collaborative business with e-commerce giant JD.com brought in new customers.
Overall, its international segment posted profit growth of 41.6%.
For the full year, it has increased its operating profit target to 650 billion yen from 610 billion yen.
Fast Retailing sought to lower its dependence on China after strict COVID-19 curbs hurt its business there and made North America and Europe its key growth areas.
($1 = 156.5200 yen)
(Reporting by Anton Bridge; Editing by Thomas Derpinghaus and Edwina Gibbs)
