Fast Retailing, the Japanese owner of Uniqlo, raised its full-year profit forecast after reporting a 45.7% jump in third-quarter operating profit, helped by strong sales momentum despite supply chain and logistics challenges linked to the Iran war.
The company posted operating profit of 213.79 billion yen (US$1.32 billion) for the three months ended May, up from 146.74 billion yen a year earlier and above the 177.73 billion yen average estimate from analysts compiled by LSEG.
Following the stronger quarterly performance, Fast Retailing lifted its full-year operating profit forecast to 730 billion yen from its previous estimate of 700 billion yen, putting it on track for a fifth consecutive year of record earnings.
The company has expanded rapidly beyond its traditional Japanese and Chinese markets, with Uniqlo growing its presence across Europe and North America. It now operates more than 2,500 Uniqlo stores globally.
Sales in Japan have benefited from a tourism recovery supported by a weaker yen, while its China operations continue to face challenges from softer consumer sentiment, leading to store closures and restructuring efforts.
Fast Retailing has also faced higher logistics costs due to geopolitical tensions, with the company previously warning that disruptions to air freight routes from Southeast Asia and rising oil prices could increase costs for synthetic fibres.
Despite these challenges, the company said strong earnings growth has kept it on track for another record year.
Reuters
