Fast Retailing, owner of clothing brand Uniqlo, posted record profits for the third year in a row on Thursday, boosted by wider profit margins in its international segments.
Operating profit rose 31% to ยฅ500.9 billion in the 12 months through August, from ยฅ381.1 billion a year earlier, the clothing maker said in a statement.
That compared with the ยฅ478.3 billion average of 15 analyst estimates compiled by LSEG, and the company’s own forecast of ยฅ475 billion.
Fast Retailing said it expects operating profit to rise further to ยฅ530 billion in fiscal 2025.
Uniqlo, known for its fleece jackets and cheap underwear, has benefited from a historically weak yen both at home and abroad. Japan’s tourism boom has led to an increase in duty-free shopping, while revenues from the push into Western markets get an extra boost when translated back into the yen.
Fast Retailing’s profits were less rosy in China, the company’s largest overseas market. With more than 900 stores on the continent, Fast Retailing has long been seen as a bellwether for the retail sector in the world’s second-largest economy.
Pandemic restrictions have hurt results there for years, but now the challenge is a sluggish economy that has weighed on consumer confidence.
Founder Tadashi Yanai has long aimed to make Fast Retailing the world’s largest fashion retailer, with Zara owner Inditex and H&M standing in the way. He has said that in a post-pandemic world, consumers are more focused on value than luxury, a trend that would work in Uniqlo’s favor.
