Fast Retailing's Q3 profit rises 18.6 pct on e-commerce, global sales
today Jul 14, 2016
Uniqlo operator Fast Retailing Co Ltd reported an 18.6 percent rise in third-quarter operating profit on Thursday, helped by growth in online sales at home in Japan and improvement in its U.S. operations.
But the clothier lowered its full-year pre-tax profit forecast due to strength in the yen, which reduces the value of overseas sales and assets.
Fast Retailing said domestic e-commerce sales jumped 41 percent in the three months through May compared with the same period a year earlier. Such sales account for around 6 percent of overall sales.
Its overseas operating profit rose 41 percent year-on-year, helped by strong sales in China and smaller losses in the United States, where it has been trying to cut costs and drive down excess inventory.
Uniqlo has consistently lost money in the United States after an expansion drive that began around five years ago, struggling against established rivals including Gap Inc and J. Crew Group and price competition from fast-fashion brands such as H & M and Inditex's Zara.
The company reiterated its April forecast for operating profit of 120 billion yen ($1.14 billion) for the full year through August. But it lowered its annual pre-tax profit outlook to 83 billion yen from 102.5 billion due to the yen's strength.
($1 = 105.5100 yen)
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