The Japanese ready-to-wear giant Fast Retailing (Uniqlo) sharply raised its objectives on Thursday for its 2021/22 financial year which will end at the end of August, thanks to robust performance in its third quarter and the sharp depreciation of the yen. .
The group is now targeting an annual net profit of 250 billion yen (1.8 billion euros at the current price), against a previous forecast of 190 billion yen, which would amount to a jump of 47.2% compared to 2020. /21, according to a statement.
It also expects operating profit of 290 billion yen (+16.5% over one year), against a previous outlook of 270 billion yen.
And it is now betting on an annual turnover of 2,250 billion yen (16.2 billion euros), which would be an increase of 5.5% over one year, against an old target of 2,200 billion yen.
Despite the continuation of a “significant decline” in sales and profits in China over its past quarter (from the beginning of March to the end of May) due to the confinements in the country in the face of Covid-19, its flagship brand Uniqlo achieved a quarter very well made in Japan and elsewhere in Asia-Pacific, according to a press release.
Uniqlo is also back in the green over the period in North America and Europe (excluding Russia, where the brand has suspended its activity since March against the backdrop of international sanctions against Moscow after the outbreak of war in Ukraine).
In total, Fast Retailing’s quarterly net profit stood at 90.9 billion yen, a result doubled over one year.
Its operating profit for the period reached 81.8 billion yen (+36.5%), a record both at current and constant exchange rates, the group said.
And its quarterly sales increased by 10.3% to 546.1 billion yen (3.9 billion euros).
The persistent weakness of the yen boosts the group’s income abroad once these are converted into the Japanese currency. It was moving Thursday to new lows against the dollar since 1998.
/ATS