Overview
- Fast Retailing reported a 45.7% rise in fiscal third-quarter operating profit to ¥213.79 billion and raised its full-year operating-profit forecast to ¥730 billion.
- Net profit climbed 39% to ¥146.7 billion on ¥1.01 trillion in revenue, and the company revised full-year revenue to ¥3.97 trillion and net profit to ¥500 billion.
- Growth was led by Uniqlo expansion in the United States and Europe, where new stores boosted sales, while Mainland China margins improved after closing unprofitable locations.
- CFO Takeshi Okazaki warned that the yen’s multi-decade weakness is lifting the company’s cost base, prompting roughly 4% price increases on select Japan seasonal items and a forecast for softer Japan results in the next quarter.
- Fast Retailing said air-freight and logistics remain vulnerable to the Iran conflict and extreme heat has changed demand patterns, which could push up input and transport costs and force further price or assortment changes for consumers.