Uniqlo owner Fast Retailing has raised its profit outlook once again as its third-quarter operating profit surged 29%, reflecting strong growth in overseas sales despite an underwhelming performance in China.
Profit rose to ¥144.7bn (£671.11m) in the three months to May 31, up from ¥112.5bn in the period the year before.
The Japanese fashion group, which owns Uniqlo and Theory, said its full-year profit is forecast to rise 23% to ¥475bn (£2.27bn), after strong second-half trading.
“Our performance was steered by substantial increases in revenues and profit of Uniqlo operations in North America, Europe and Southeast Asia,” Fast Retailing said.
It added that Uniqlo Japan also reported “significantly higher revenue and profit for the three months from March to May. All these factors helped generate an overall record performance for the group on a consolidated basis.”
As a result, profit before income taxes for the third quarter rose 33% year on year to ¥477.7bn (£2.32bn).
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Through the nine-month period, operations in Greater China saw a decline in revenue and a large drop in profit, due in part to strong performance the previous year and a general slowdown in consumer appetite, the company said.
The business is plotting an aggressive growth trajectory in Greater China, North America and Europe, taking advantage of a post-pandemic shift among many consumers for value over luxury.
“We aim to enhance our product development and branding and accelerate high-quality store openings at Uniqlo International in particular as the growth pillar of the Fast Retailing Group,” the company said.
“Our aim is to create high-quality clothing that lasts a long time, clothing that exerts a lower impact on the planet and is made in healthy and safe working environments, and circular clothing that can ultimately be recycled or reused.”
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