Fast Retailing profit soars as Uniqlo Asia booms
Uniqlo parent Fast Retailing has reported a record full-year profit due to strong growth in Asia and lessening losses in the US and, based on current performance, expects even better results in future.
Fast Retailing profit rose 34 per cent to $2.96 billion (US$2.11 billion) in the year to August.
The company reported a solid third quarter in July, again based on strong sales across Asian markets. Sales outside Japan rose 28 per cent year on year over the first nine months of FY18, and operating profit outside Japan soared 65 per cent, driven largely by Uniqlo Asia.
Uniqlo Southeast Asia & Oceania same-store sales by double digits, largely driven by strong growth in the sale of UT and shorts.
The US arm of the business halved its operating loss due to a tailored product mix for consumers on the East and West coast, as well as more accurate sales planning.
Online sales were also strong as the Uniqlo brand expanded its reach to new markets.
Looking forward, Fast Retailing expects to achieve a record performance in the financial year ending August 31, 2019, predicting an 8 per cent rise on consolidated revenue and a 14.3 per cent increase in consolidated operating profit year on year.
The Southeast Asia & Oceania market are expected to generate strong gains in revenue in profit, while Uniqlo North America (US & Canada) is forecasted to turn a profit.
This story was adapted from sister-site Inside Retail Asia.
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