Uniqlo operator Fast Retailing upgrades full-year net profit forecast

The operator of Japan’s high-street fashion giant Uniqlo on Thursday revised up its full-year net profit forecast to what would be a record performance, citing strong global sales.

Retail behemoth Fast Retailing now expects to make 320 billion yen ($2.1 billion) in the year to August, up from the previous estimate of 310 billion yen.

It also sees full-year operating profit of 450 billion yen on sales of 3.03 trillion yen, both of which would also be record figures if realised.

Operating profit and sales during the first half to February “represented a new record consolidated performance fuelled primarily by considerably higher first-half profits from Uniqlo operations in North America, Europe, and Southeast Asia”, the company said.

Its low-cost GU clothing brand has been another key driver of the retail group’s expansion, Fast Retailing added.

For the six months to February, the company posted a 195.9 billion net profit, a 27.7 percent jump year-on-year.

Operating profit stood at 257.0 billion yen, up 16.7 percent.

Last month, Zara owner Inditex, the world’s biggest fashion retailer, said it had enjoyed its highest-ever profits last year despite a complicated global backdrop.

The firm, which has seen a strong performance on Spain’s stock market over the past year, posted a net profit of 5.4 billion euros ($5.9 billion), up 30 percent from 4.1 billion euros in 2022, which was also a record.