New | Uniqlo overseas push pays off for Fast Retailing
Japanese apparel firm raises profit forecasts and looks to step up push in China as it aims for the world's leadership position by 2020
Fast Retailing raised its full-year earnings forecasts after sales at its Uniqlo casual-wear stores in China and South Korea grew more strongly than expected during the first half of the financial year, showing its overseas expansion is bearing fruit.
Overseas growth is key to the Japanese firm's goal of becoming the world's top apparel retailer by 2020 ahead of Zara owner Inditex, Hennes & Mauritz and Gap.
Chief executive Tadashi Yanai said Fast Retailing would have more Uniqlo outlets overseas than in Japan by this autumn, with openings in mainland China, Hong Kong and Taiwan to continue at break-neck pace.
"Maybe in about five years, we'll have 1,000 stores [in China]," he said, compared with 415 at the end of February. "Eventually we want to have about 3,000 stores [there]."
Uniqlo, known for its HeatTech fabric technology and rainbow-coloured basics, now has close to 1,600 stores globally, with about 46 per cent of those outside Japan.
Fast Retailing said it now expected operating profit of 200 billion yen for the financial year to August, up from its previous estimate of 180 billion yen. The average forecast of 22 analysts was for 197.25 billion yen.
Asia's biggest apparel retailer also bumped up its revenue forecast to 1.65 trillion yen from 1.6 trillion yen and its net profit estimate to 120 billion yen from 100 billion yen.