Uniqlo owner sees 11% increase in profits from overseas sales in second quarter By Reuters

adminApril 10, 2024

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TOKYO (Reuters) – The Japanese operation of global clothing giant Uniqlo is expected to post a stronger quarterly profit on Thursday as its overseas operations make up for slowing domestic growth.

Fast Retailing’s operating profit for the three months through February is expected to rise 11% year-on-year to 114.3 billion yen ($753.4 million), based on the average of five analyst estimates compiled by LSEG.

The increase comes in the first quarter, when Fast Retailing recorded a 25% increase in revenue, driven by strong performance in China, its largest overseas market.

The company was conservative and did not change its future guidance after these results, so second-quarter results could beat the consensus figure, according to LightStream Research analyst Oshadhi Kumarasiri.

“This optimism is fueled by a number of factors, including the continued recovery of Uniqlo’s business in China and Korea, strong same-store sales performance in Asia, India and Oceania, and the impressive apparel sales observed in the U.S. for December 2023,” Smartkarma said. wrote in the platform report.

The company, founded and run by Tadashi Yanai, has delivered record performance over the past two years and expects profits to grow again this year as it continues its aggressive growth overseas.

Yanai, Japan’s richest man, is scheduled to speak at Fast Retailing’s earnings conference call on Thursday.

With 922 stores in mainland China, Fast Retailing is a leading global retailer operating in the world’s second-largest economy. Sales in the region have rebounded significantly over the past year due to COVID-19 lockdowns.

The yen’s decline to its lowest level in nearly 34 years is also a tailwind for Fast Retailing, which generates more than half of its sales outside Japan.