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Reuters
Published
Oct 8, 2009
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Uniqlo owner Fast Retailing sees 10.5% profit growth

By
Reuters
Published
Oct 8, 2009


TOKYO, Oct 8 (Reuters) - Japan's Fast Retailing (9983.T) on Thursday 8 October forecast 10.5 percent growth in annual operating profit this financial year, as its Uniqlo casual clothing chain continues to draw cost-conscious consumers away from rivals.

While most of Japan's retail industry is still reeling from a a slump in consumer spending that shows little sign of abating amid rising job losses, Uniqlo has attracted customers with hit products like underwear made with heat-trapping fabric.

For the year ending in August 2010, the company forecast 120 billion yen ($1.4 billion) in operating profit, roughly in line with the average estimate of 119.4 billion yen in a poll of 18 analysts by Thomson Reuters I/B/E/S.

That would follow a 24 percent rise in operating profit to 108.6 billion yen for the past financial year, in line with its own forecast of 108 billion yen. Same-store sales at Uniqlo stores in Japan rose 11.3 percent during the period.

Shares in the company, which runs about 780 Uniqlo stores in Japan and 80 overseas, have risen 2 percent in the year to Wednesday 7 October, underperforming a 11 percent gain in the benchmark Nikkei average .N225. (Reporting by Taiga Uranaka; Editing by Edwina Gibbs)

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