TOKYO (Reuters) – Fast Retailing, the Japanese group that owns clothing brand Uniqlo, reported a 22% rise in nine-month operating profit on Thursday, buoyed by its operations in China, and noted its annual profit forecast.
Profit reached 330.6 billion yen (2.14 billion euros) in the first nine months ending May 31, compared with 271.1 billion yen a year earlier.
The company, known for its fleece jackets and affordable basics, raised its annual profit forecast to 370 billion yen from 360 billion yen previously. That figure compares to an average estimate of 363 billion yen in annual profit, according to a Refinitiv poll of 14 analysts.
The January resumption of activity in mainland China, strongly impacted by the restrictions related to the COVID-19 pandemic, resulted in a sharp increase in sales and profits during the second quarter, the company said in april.
China has more Uniqlo outlets than Japan, with 925 stores, and is a key indicator of the retail market.
Shares of Fast Retailing are up 32% year-to-date, helping founder Tadashi Yanai cement his position as Japan’s richest man. The group’s shares outperformed the 24% rise in the Nikkei index, which has been one of the fastest growing stock markets in the world.
(Rocky Swift report, Dina Kartit, edited by Kate Entringer)
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