Fast Retailing Co. posted a 22% jump in quarterly profit as strong performance in Japan and overseas markets outside China helped offset weakness in its largest foreign market.
Net income rose to 131.9 billion yen (US$910 million) in the three months ended November, from 107.8 billion yen a year earlier. Revenue climbed 10% to 895.1 billion yen, the Tokyo-based company said Tuesday.
The Uniqlo operator saw robust growth in Southeast Asia, North America and Europe, where new store openings and strong same-store sales drove results. The company’s US expansion strategy gained traction with new Texas locations performing above expectations.
However, mainland China proved challenging as persistently warm weather and ineffective product mix dampened sales and profits. The key market saw both revenue and profit decline sharply during the quarter.
In Japan, same-store sales rose 7.3% as the retailer successfully managed inventory and marketing for different weather patterns. The domestic unit’s operating profit increased 12% to 52.1 billion yen.
The company maintained its full-year profit forecast of 385 billion yen on revenue of 3.4 trillion yen. It plans to pay an annual dividend of 450 yen per share, up from 400 yen last year.
The GU casual clothing unit reported weak results with operating profit falling 20% to 9.8 billion yen despite a 3.1% revenue gain, as it struggled to create hit products and manage inventory.
