Owner of the fast fashion brand Uniqlo, Fast Retailing has raised its full-year profit forecast to 475 billion yen, from the previous estimate of 450 billion yen.
Driven by strong domestic sales, the company’s operating profit rose by 29 per cent during Q3 FY24. Surpassing the consensus forecast of 127.1 billion yen from poll of six analysts by LSEG, Fast Retailing’s profit for quarter ending May 31 increased to 144.7 billion yen ($894.81 million) from 112.5 billion yen in the same period the previous year.
Known for its quality, affordable basics, the company’s flagship brand Uniqlo benefited from the yen's depreciation to a 38-year low, enhancing the value of its overseas sales.
Fast Retailing is pursuing aggressive growth in Greater China, North America, and Europe, capitalising on a post-pandemic consumer shift towards value over luxury. With over 900 stores in mainland China, the company serves as a key indicator for global retailers in the world's second-largest economy.
However, despite the overall profit increase, Fast Retailing's operations in Greater China experienced a decline in revenue and a significant drop in profit over the nine-month period. This decline was partly due to a strong performance in the previous year and a general slowdown in consumer demand.
