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Uniqlo reports strong net profit at 78.5 billion yen

Image Courtesy: nssmag.com

Uniqlo, owned by the Japanese fast-fashion company Fast Retailing Co. Ltd., has reported a 12.7 per cent increase in its net profit in three months ended November 2017. During the period under review, the fashion brand’s net profit reached 78.5 billion yen. Earlier, analysts predicted it to be around 63 billion yen.

Operating profit for the fashion retailer jumped by 28.6 per cent to 113.9 billion yen as sales improved by 16.7 per cent during the quarter.

Additionally, Asia’s biggest fashion label witnessed higher demand in the international markets for its products as compared to the domestic market. Uniqlo reported strong growth in revenue in the United States of America, France and Russia markets. China also remained a sturdy buying destination for Uniqlo.

The brand’s overseas sales increased one-third to 258 billion yen (US $ 2.3 billion), surpassing 257 billion yen from domestic sales.

Buoyant demand for its staple Autumn/Winter 2017 products also helped the company in beating its previous profit forecast.

Despite a strong performance in the quarter, Fast Retailing has not announced any change in its forecast for the full year to August 2018.

Uniqlo is also gearing up to expand its global presence and foray into the Indian market. It has already applied for the single brand licence to commence its retail operations in the Indian market. Earlier, it was reported that the brand might open its debut store in the country by 2018.