Uniqlo Owner Again Raises Profit View — Update
By Megumi Fujikawa
TOKYO--Fast Retailing again raised its profit outlook, reflecting strong growth in overseas sales and the yen's depreciation.
The Japanese owner of the Uniqlo clothing brand said Thursday that profit is forecast to rise 23% to a record 365 billion yen ($2.26 billion) on sales of Y3.07 trillion for the fiscal year ending Aug. 31.
That follows an upward revision made in April, when it had expected net profit to rise to Y320 billion.
Fast Retailing now expects to report Y35.5 billion in foreign-exchange gains on an assumption that the dollar would trade at 156.80 yen at the end of the business year. The yen is changing hands around 161.60 to the dollar on Thursday afternoon in Tokyo.
In the three months ended May 31, the apparel retailer's net profit increased 37% compared with the same period a year earlier to Y116.9 billion, led by solid sales in North America, Europe, Southeast Asia and Japan.
On the other hand, revenue in mainland China and Hong Kong dropped during the three-month period in local currencies due to factors such as lackluster consumer appetite, unstable weather and insufficient marketing, the company said.
Chinese "customers have become more strict when they choose products and services," said Ning Pan, who is in charge of Uniqlo in the Greater China region, which includes China, Hong Kong and Taiwan.
Still, Pan said the China business has plenty of room to grow, given its large population.
The company aims to open between 50 to 80 new Uniqlo stores a year in the region while closing unprofitable shops, Pan said.
"I definitely want to achieve Y1 trillion sales [in the Greater China region] by 2028," Pan said.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
July 11, 2024 04:38 ET (08:38 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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