By Kosaku Narioka


Fast Retailing Co. said Thursday that its first-quarter net profit fell 9.1% from a year earlier due to higher costs and weaker sales in China.

The owner of Uniqlo said that net profit for the quarter ended Nov. 30 fell to 85.07 billion yen ($642.1 million) from Y93.59 billion a year earlier. That missed the estimate of Y90.92 billion taken from a poll of analysts by FactSet.

While first-quarter revenue climbed 14% from a year earlier to Y716.39 billion, cost of sales rose 16% to Y336.11 billion and selling, general and administrative expenses increased 19% to Y265.03 billion.

While Uniqlo revenue for China, Hong Kong and Taiwan fell 3.2% to Y146.72 billion due partly to Covid-19-related restrictions, revenue for other reported regions and segments increased. Uniqlo revenue for Japan rose 6.4% to Y240.95 billion thanks to strong sales of autumn and winter clothes due to cold weather.

Fast Retailing backed its revenue and net-profit forecasts for the fiscal year ending in August. The Japanese apparel retailer continues to expect that revenue will increase 15% to Y2.650 trillion and that net profit will drop 16% to Y230.00 billion.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

01-12-23 0145ET