Uniqlo Owner Fast Retailing Posts Strong Quarterly Earnings and Raises Guidance

Fast Retailing reported a 12% rise in first-quarter net profit to ¥147.45 billion and lifted its fiscal-year profit and revenue forecasts after broad regional sales gains.

Fast Retailing, owner of Uniqlo, reported strong quarterly earnings for the three months ended November and raised its fiscal-year guidance. Revenue and profit rose across several regions, including double-digit gains in North America and Europe. In the U.S., the chain limited discounts and raised some prices to offset tariffs. The company also cited a tie-up with JD.com as a driver of increased online customers in China. Key details: - First-quarter net profit rose 12% year-on-year to ¥147.45 billion, beating the ¥132.0 billion consensus mentioned in the article. - Revenue rose 15% to ¥1.028 trillion and operating profit jumped 34% to ¥210.91 billion. - Fast Retailing raised its fiscal-year forecasts to net profit of ¥450.00 billion and revenue of ¥3.800 trillion, up from prior forecasts of ¥435.00 billion and ¥3.750 trillion. - Regional Uniqlo revenue changes included Japan +12% to ¥299.07 billion; North America +30% to ¥88.70 billion; Europe +34% to ¥136.95 billion; and China, Hong Kong and Taiwan +7% to ¥191.16 billion. - In the U.S., Uniqlo limited discounts and raised some prices to help offset the impact of tariffs; the company notes most garments are made in countries such as China, Vietnam, Bangladesh, Indonesia and India. - Chief Financial Officer Takeshi Okazaki said there might be an impact on Chinese sales after Prime Minister Sanae Takaichi's comments on Taiwan, but that the company's ability to meet customer demand and weather conditions are more important drivers of earnings. Summary: Fast Retailing's stronger-than-expected first-quarter results and regional sales gains led it to raise its fiscal-year profit and revenue forecasts. Undetermined at this time.