TOKYO >> The Japanese operator of fashion giant Uniqlo on Thursday raised its forecast for what would be its third consecutive year of record profits, buoyed by strong sales at home and some overseas markets. The domestic market was a bright spot for Fast Retailing, aided by a surge in duty-free sales from tourists taking advantage of the yen’s slide to a 38-year low. Meanwhile the company said there were signs of maturing in China, its largest overseas market.
It lifted its full-year operating profit forecast to 475 billion yen ($2.94 billion) for the year ending in August from 450 billion yen, citing strong performance since the second half. “The solid results were fuelled by Uniqlo Japan as well as the Uniqlo International business segment, which saw strong performances in North America, Europe and Southeast Asia,” the company said.
Uniqlo is renowned for its quality and affordable basics, and Fast Retailing is benefiting from a slide in the yen that has boosted the value of its sales abroad. The weak yen helped in Japan too, as the proportion of duty-free sales doubled in the nine-month period, the company said. “If the number of inbound customers increases going forward, we will of course make every effort to try to capture that demand,” CFO Takeshi Okazaki said.
But the weak yen and the domestic inflation it fosters contributed to very different results at convenience store leader Seven & i, whose quarterly operating profits fell 28%. The president of Seven & .
