Uniqlo owner adds stores in US, Europe as China store count drops
Fast Retailing raised its annual earnings forecasts Thursday after reporting a 39% jump in third-quarter net profit, as stronger sales across international markets helped the Japanese retailer beat analyst estimates. The Uniqlo owner said net profit for the three months ended May was ¥146.7 billion ($902.1 million), compared with the ¥118.9 billion expected by analysts in a Visible Alpha poll.
Revenue for the quarter grew 22% from a year earlier to ¥1.01 trillion. The company now expects full-year revenue to rise 17% to ¥3.970 trillion and net profit to climb 15% to ¥500 billion, up from previous forecasts of ¥3.900 trillion in revenue and ¥480 billion in net profit.
The results reflect Fast Retailing’s strategy of expanding its Uniqlo footprint in developed Western markets while pulling back in China, its second-largest market after Japan. The company has been adding stores in the U.S., Europe and Southeast Asia in recent quarters while reducing its store count in China, according to the company.
Fast Retailing has said it aims to grow revenue from North America and Europe to ¥1 trillion each within about five years, underscoring the regions’ increasing importance to its growth plans.