Fast Retailing sees strong sales in key markets

In the September to November period, Fast Retailing Co. said its net profit rose 33% to 93.59 billion $820 million, upbeat sales of Uniqlo clothing in key markets, including the United States and Europe.

The operator of Uniqlo and GU clothing brands said demand in North America, Europe and some Asian countries made up for a slump in Japan as well as China, where a resurgence in COVID 19 cases has resulted in a restriction on movements and some store closures.

Earnings in Europe exceeded pre-COVID levels as appetite for spending increased amid a resumption of economic activity across the region, Chief Financial Officer Takeshi Okazaki said at a news conference.

The operating profit from overseas business increased by 44.6% to 59.9bn, on sales of 299.7bn, up 15%.

The company said warmer than usual weather in Japan resulted in a decline in domestic sales and operating profit, sagging 10.8% to 226.4 billion and 18.8% to 48.7 billion, respectively.

Okazaki said that we want to avoid raising our product prices because we may have no choice for some goods due to the recent upward trend in raw material and shipping costs. In the first quarter of the business year, the operating profit increased 5.6% to 119.41 billion on sales of 627.39 billion, up 1.2%, according to Fast Retailing.

It maintained its full-year net profit outlook at 175 billion through August.

The apparel chain left its full-year earnings forecast unchanged, citing growing uncertainty over the COVID 19 pandemic in the wake of the spread of the omicron variant.