Uniqlo Owner Raises Profit Forecast After First-Half Profit Rose on Overseas Growth — Update
By Kosaku Narioka
Fast Retailing raised its earnings outlook as it reported profit growth for the fiscal first half, driven by higher sales in the U.S. and Europe, a sign of success in its strategy of global expansion.
The Japanese owner of Uniqlo and other clothing brands said Thursday that net profit increased 28% from a year earlier to 195.91 billion yen ($1.28 billion) for the six months ended Feb. 29. That beat the estimate of Y179.58 billion from a poll of analysts by data provider Visible Alpha.
Fast Retailing raised its net profit projection for the fiscal year ending August and now expects an 8.0% increase to Y320.00 billion, up from its previous expectation for a 4.6% increase.
First-half revenue rose 9.0% from a year earlier to Y1.599 trillion. Revenue from Uniqlo grew in overseas markets, though revenue for Japan declined.
Uniqlo's revenue from North America climbed 25% to Y108.54 billion as it benefited from a shift toward casual dressing and as inflation-weary shoppers in the U.S. became more price sensitive. Revenue for Europe rose 25% to Y142.17 billion, thanks partly to an expansion of its customer base and new store openings.
The apparel retailer plans to increase the total number of stores to 3,609 globally at the end of August from 3,578 a year earlier by opening more Uniqlo stores abroad.
Uniqlo's first-half revenue from China, Hong Kong and Taiwan rose 12% to Y360.45 billion.
Uniqlo revenue for Japan fell 2.0% to Y485.11 billion as warm weather weighed on sales of winter clothes. Uniqlo revenue for the rest of Asia and Oceania rose 17% to Y272.82 billion.
The company's operating profit margin improved to 16.1% in its first half from 15.0% in the year-earlier period.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 11, 2024 04:05 ET (08:05 GMT)
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