Fast Retailing Shares Hit Record High After Guidance Upgrade

By Kosaku Narioka

Fast Retailing shares surged to a record intraday high after the Uniqlo owner raised its annual earnings forecasts following strong first-half global sales.

Shares were recently 9.0% higher at 73,550 yen on Friday after hitting an all-time intraday high of Y74,220 earlier.

Fast Retailing said after Thursday's market close that net profit increased 20% from a year earlier to Y279.29 billion, equivalent to $1.76 billion, for the six months ended February. Revenue rose 15% to Y2.055 trillion.

Citing strong results so far, the company raised its guidance for the fiscal year ending August. It now projects revenue to rise 15% to Y3.900 trillion and net profit to increase 11% to Y480.00 billion. The company had previously forecast revenue of Y3.800 trillion and a net profit of Y450.00 billion.

Uniqlo's first-half profits grew across various regions, driven by new store openings in places like Antwerp in Belgium and Frankfurt and Munich in Germany. It recently opened new stores in New York and Chicago in the U.S.

Nomura analyst Hisahiro Yamaoka said in a note that Uniqlo sales remain strong in Europe, the U.S., and Southeast Asia, and that the company also appeared to be making steady progress in restructuring its Chinese business. "The results were very favorable," he said.

The U.S. and Europe have increasingly become important regions for Fast Retailing as it chases growth outside Japan and China, its biggest markets, as part of its diversification efforts.

The retailer has been adding more Uniqlo stores in the U.S., Europe, and Southeast Asia in recent quarters while reducing the number of stores in China.

Fast Retailing said it aimed to grow revenue in its markets of North America and Europe to Y1.0 trillion each in the coming years.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

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