Uniqlo beats the current, raises profit forecast

Japanese fashion giant Fast Retailing has raised its profit forecasts as its financial year is going better than expected. The Uniqlo owner plans to double its number of Dutch stores this autumn, looking to grow aggressively abroad.

Much more profit

Operating profit rose 29 % in the third quarter, driven mainly by strong sales in Fast Retailing’s home country of Japan. Profits rose to 144.7 billion yen (840 million euros) in the three months to 31 May. In fact, in nine months there was a 30 % increase, which is more than expected and makes the company revise its full-year forecast.

For the full financial year, ending in August, the Uniqlo owner has raised the net profit forecasts from 320 billion to 365 billion yen (2.08 billion euros). Fast Retailing now estimates turnover at 18 billion euros, up 11 % from a year earlier.

Twice the size in Netherlands

Ghe group remains committed to aggressive growth abroad: Uniqlo International’s sales rose 19.4 % to 408.8 billion yen (2.33 billion euros) in the past nine months. Operating profit there climbed 15.6 % to 71 billion yen (400 million euros).

The group is investing in new shops and reckons consumers are more likely to opt for budget-friendly, casual fashion since the pandemic. In the Netherlands, Uniqlo plans to open two new shops this autumn (in Rotterdam and Amsterdam), suddenly doubling its total shop count there.

Only in “Greater China” did sales fall – and profits even more – due to weaker demand. Marketing was insufficient, Uniqlo admits, combined with bad weather and strong performance to compare with last year.