Uniqlo operator Fast Retailing is set to post a robust quarterly profit on Thursday (11 April) as its overseas units make up for slowing growth within its home market Japan.
Analyst forecasts compiled by LSEG indicate an 11% year-over-year rise in operating profit in the three months through February, reaching 114.3bn yen ($753.4m).
This growth follows a 25% earnings increase in the first quarter, propelled by strong performances in China, the fashion retailer’s largest foreign market.
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Although Fast Retailing maintained a conservative forward outlook, so second-quarter results may top consensus figures, according to LightStream Research analyst Oshadhi Kumarasiri.
Kumarasiri cites the recovery of Uniqlo’s business in China and South Korea, robust sales in the Asia, India, and Oceania regions, and December’s impressive apparel sales in the US as key factors driving optimism.
Under the leadership of Japan’s richest man, Tadashi Yanai, Fast Retailing has posted record results in the past two years and anticipates further profit growth as it aggressively expands its international footprint.
Last month, Uniqlo said it would be raising the hourly rate for its UK retail staff by 7% as it rolls out new employee benefits.
The retailer will increase the average pay for its “entry grade” store assistants in London to £13.15 and £12.15 for those based outside of the city from 1 April.
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