By Kosaku Narioka
Fast Retailing, the owner of Uniqlo, has announced its third-quarter results. Here’s an overview of the key details:
The company disclosed that its net profit for the quarter ended May 31 decreased by 6.4% compared to the same period last year, amounting to ¥85.1 billion ($614.4 million). This surpassed the estimate of ¥70.23 billion from a FactSet poll of analysts.
Third-quarter revenue experienced a significant increase of 24% from the previous year, reaching ¥676.1 billion. This figure exceeded the estimated revenue of ¥633.14 billion according to the FactSet poll.
Fast Retailing reported that its Uniqlo business in China performed remarkably well and exceeded expectations. Same-store sales in mainland China surged by over 40% compared to the previous year, attributed to a recovery in consumer spending following the pandemic-induced slump. The demand for summer clothing also contributed to this growth.
Based on the strong third-quarter results, Fast Retailing has revised its revenue and net profit forecasts for the fiscal year ending in August. The company now anticipates a 19% increase in revenue, projecting it to reach ¥2.730 trillion, while expecting a 4.9% decrease in net profit to ¥260.00 billion.
Fast Retailing has raised its dividend forecast for the fiscal year. The new dividend forecast is ¥280.00 per share, up from the previous forecast of ¥250.00 per share. In the previous fiscal year, the company paid out ¥206.67 per share.