Uniqlo boosts outlook on bumper Q1 trading

(Sharecast News) - Fast Retailing, the Japanese owner of clothing brand Uniqlo, boosted its full-year outlook on Thursday following a bumper first quarter. Revenues surged 14.8% at the retailer - a bellwether in Japan and China - in the three months to 25 November, to Y1.03trn (£4.89bn). Operating profits were nearly 34% higher at Y210.9bn, comfortably ahead of forecasts.

Driving the performance was a strong showing in Fast Retailing's international division, which saw revenues rally 20.3% to Y603.8m. The group said it had been helped by the onset of cold weather in late October in China, while the US and Europe benefited from new store openings, including in Birmingham and Glasgow in the UK, as well as enhanced marketing.

Revenues in its home market were 12.2% stronger at Y299m, helped in part by the weak yen leading to a tourism boom.

As a result, the group lifted its full-year guidance. It now expects consolidated annual revenues to be Y50bn higher than its previous forecast, at Y3.8trn, and for operating profit to be Y40bn higher at Y650bn.

Fast Retailing said: "Uniqlo business in all regions performed strongly, reporting revenue and profit gains across the board.

"High-quality store openings and strategic information dissemination contributed considerably to our branding. We also improved the organisation of inter-season business, enabling Fall products and year-round products to drive sales during the period."