Thursday, October 10, 2013
DJ: Fast Retailing Net Profit Up 26.1% In FY13
TOKYO--Asia's biggest retailer, Fast Retailing Co. (9983), logged a 26.1% rise in net profit for the year to August, but it said it expected profit growth to slow to 1.8% in the current business year as a weak yen raises costs and the effects of promotional sales wane.
The operator of the Uniqlo chain of clothing stores said Thursday it earned an annual net profit of Y90.38 billion ($924 million) due to strong sales at home and at new stores around Asia. For the year to August 2014, however, the company said it expected a net profit of Y92 billion, below the average estimate of Y100.3 billion by 20 analysts surveyed by Thomson Reuters.
Sales for the just-ended year rose to Y1.14 trillion, surpassing the Y1 trillion mark for the first time.
Prime Minister Shinzo Abe's reflationary policies are lifting stockmarket prices and spending on luxury items, but they are doing little to weaken Japanese customers' bargain-savvy shopping for sundries. Customers in Japan are spending less per person, and investors worry this will undermine strong sales growth. The company earns the bulk of its sales from its Uniqlo stores in Japan.
Fast Retailing also said its operating profit rose 5.1% in the year to August to a record Y132.9 billion on a 23.1% rise in sales.
Shares of Fast Retailing have jumped nearly 90% in the year to date, outperforming the roughly 60% rise in Tokyo's benchmark Nikkei Stock Average.