Japan’s Fast Retailing, the owner of clothing brand Uniqlo, said on Thursday its first-quarter operating profit rose 5.6% from a year earlier, boosted by sales in South Asia, North America and Europe.
Profit rose to 119.4 billion yen ($1.04 billion) in the three months ended November 30. The market’s consensus forecast was for 102.6 billion yen, an average of analysts’ forecasts from Refinitiv showed.
Uniqlo’s international segment reported record first-quarter results, while revenue and profits declined at operations in Japan and mainland China, the company said in a statement.
The company maintained its forecast for operating profit to climb 8.4% to 270 billion yen in the fiscal year ending in August.
Fast Retailing’s shares have fallen 9.5% year-to-date, compared with a 1.1% drop in the benchmark Nikkei 225 index .
Last week, the company reported an 11% decline in same store sales year-on-year for December.
“Many are arguing that the company’s attempts to move up-market are failing, but the company claims that collaborative merchandise – Jil Sander and other high-end lines – are selling extremely well,” Michael Jon Allen, an equity analyst at Jefferies in Tokyo, said.
- Reuters, with editing by George Russell