Fast Retailing, the Japanese operator of global clothing chain Uniqlo is expected to blow past last year’s record profit when it reports results, benefiting from a recovery in China and the yen’s slide.
In July, the company posted record third-quarter profitability and upped its full-year outlook as revenue recovered from a pandemic-related slowdown in China, its largest international market with nearly 900 outlets.
According to the average estimate of 12 analysts compiled by London Stock Exchange Group (LSEG), operating profit for the fiscal year through August will increase 26 per cent to ¥ 374.6 billion.
The company forecasts ¥ 370 billion, which would be a significant increase above last year’s ¥ 297.3 billion.
Fast Retailing, founded by Japan’s richest man Tadashi Yanai, is a barometer for retailers operating in China, the world’s second-largest economy, whose sales have begun to revive following the relaxation of rigorous Covid-19 regulations.
Fast Retailing has intensified its attention on markets in North America and Europe after its Chinese businesses had been dormant for more than two years.
The company has an aggressive growth strategy for North America, and Daisuke Tsukagoshi, the regional chief, was promoted to Uniqlo president last month.
