Companies

Uniqlo owner raises outlook

Jul 21, 2022 Japan

The Japan-based Fast Retailing posted record profit results in the third quarter of fiscal 2022, with strong performances in every market except for Greater China, raising its outlook in result

The group reported an increase in revenue of 10.3% in the third quarter of the current fiscal year, reaching 546.1 billion yen (3.95 billion US dollars), on a comparable basis to the same period of last year. Operating profit grew by 36.5% in this period, totalling 81.8 billion yen (592.2 million US dollars), an all-time high for the company.

As for the nine months through May, Uniqlo's consolidated revenue grew by 3.9%, amounting to 1.7651 trillion yen (12.7 billion US dollars), and operating profit was up by 19%, corresponding to 271.0 billion yen (1.96 billion US dollars), as compared to the same period of the prior year.

Uniqlo's performance in Japan for the three months ended in May improved from the first half of the year, with revenue increasing in the third quarter by 8.7% and same-store sales rising by 7.8%, year-over-year. In the first nine months of the year, revenue and operating profit declined by 5.1% and 0.4%, respectively, on a comparable basis to the same period of fiscal 2021.

In turn, Uniqlo international posted "large increases" in both revenue and operating profit in the first nine months of fiscal 2022, with strong performances in every market except the Chinese one, due to the impact of COVID-19-related restrictions. The group added, however, that it is recovering in China since June, as restrictions were meanwhile eased.

Full Year Outlook

Fast Retailing is now expecting consolidated revenue of 2.2500 trillion yen (16.3 billion US dollars) and an operating profit of 290.0 billion yen (2.1 billion US dollars) for fiscal 2022, which reflects an upward revision of 50.0 billion yen (361 million US dollars) for revenue and 20.0 billion yen (145 million US dollars) for operating profit.

According to the company's statement, "these upward revisions were prompted by the strong third-quarter performance and the fact that performance also exceeded our forecasts in local-currency terms, as well as our decision to revise the assumed foreign exchange rate for our fourth-quarter business estimates to reflect the continued depreciation of the Japanese yen".

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