Uniqlo Owner Posts Higher Profit as Japan, China Sales Lag

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

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.