Fast Retailing Co., the operator of the Uniqlo clothing chain, said Thursday it posted a record net profit of 273.34 billion yen ($1.9 billion) for the year ended August, up 60.9 percent from a year earlier, helped by robust overseas sales.
A recovery from the coronavirus pandemic has led to a rebound in demand, the Japanese firm said. The rapid fall of the yen against other major currencies also contributed to the result by increasing the value of its overseas earnings.
Operating profit rose 19.4 percent to 297.33 billion yen on sales of 2.3 trillion yen, up 7.9 percent. Both were also record highs.
"As the pandemic is ending around the world, consumer appetite for shopping has been increasing," Fast Retailing CEO Tadashi Yanai said at a press conference. "Now that we have a structure that continues to make profits in North America and Europe, we are aiming to become a truly global brand."
Sales from its domestic Uniqlo business, meanwhile, fell 3.8 percent to 810.2 billion yen as some popular items such as Ultra Light Down jackets and Heattech innerwear went out of stock at some stores due to a disruption in distribution, it said.
Its Chinese operations, a growth driver, also slowed, partly affected by a lockdown in Shanghai due to the pandemic.
Yanai said the company is not just seeking products that are cheap, emphasizing that it will seek to balance between price and quality.
In response to rising material costs, Fast Retailing said it will ramp up sales of clothing that is less affected by fashion trends so it can avoid marking down its prices as much as possible.
For the current business year through next August, the company forecast its net profit will fall 15.9 percent to 230 billion yen. The forecast does not factor in the positive impact of the weaker yen, it said.
Operating profit is expected to rise 17.7 percent to 350 billion yen on sales of 2.65 trillion yen, up 15.2 percent.
