Fast Retailing Logs Record 9-Month Net Profit

Tokyo, July 9 (Jiji Press)–Japan’s Fast Retailing Co., the operator of Uniqlo and other casual clothing stores, said Thursday that it posted a record group net profit for the nine months ended in May, thanks chiefly to strong sales in Europe and the United States. The company said its net profit rose 25.6 pct from a year earlier to 426 billion yen in the nine-month period, with sales and profits from its mainstay Uniqlo operations growing in all regions. Fast Retailing’s sales jumped 17.1 pct to a record 3,065.1 billion yen, while its operating profit surged 36.2 pct to a record 614.3 billion yen. In the Uniqlo business in Japan, sales of long-sleeved T-shirts and summer items increased. Its overseas Uniqlo business also remained strong thanks to new flagship stores in North America and new stores in Europe. Based on the results, Fast Retailing has revised up its full-year earnings forecasts. Sales are now projected at 3.97 trillion yen, up from its previous estimate of 3.9 trillion yen. Operating profit is forecast at 730 billion yen, up from 700 billion yen, and net profit is projected at 500 billion yen, up from 480 billion yen. Regarding the impact of the weaker yen on raw material prices and other factors, Fast Retailing director Takeshi Okazaki said at a press conference that “the situation is becoming more severe,” suggesting that the company may raise prices for some products in Japan. END [Copyright The Jiji Press, Ltd.]