Uniqlo owner Fast Retailing Co. rose the most in six months after raising its forecast for the full year.
(Bloomberg) — Uniqlo owner Fast Retailing Co. rose the most in six months after raising its forecast for the full year.
The stock climbed as much as 7.9% in Tokyo trading Friday, the largest intraday gain since October. The retailer raised its forecast for operating profit to ¥360 billion ($2.7 billion) for the 12 months through August, compared with the prior outlook of ¥350 billion. The dividend outlook was raised to ¥125 a share, from ¥115 a share.
Operating profit rose 48% to ¥102 billion ($765 million) for the three months ended February, compared with the ¥90 billion, projected by analysts on average, the apparel maker said in a statement Thursday. Net sales jumped 27% to ¥751 billion, compared with analysts’ prediction for ¥687 billion.
While Uniqlo Japan’s second-quarter results fell short of the estimate, international sales and its profit margin were much higher, Kuni Kanamori, an analyst at SMBC Nikko Securities Inc., wrote in a note to clients.
READ: Fast Retailing Jumps on Profit Beat, Forecast Hike: Street Wrap
The retailer is entering a new phase for growth as consumers live with Covid and will accelerate the expansion to eventually reach ¥10 trillion in sales to become “a true global player,” Chief Executive Officer Tadashi Yanai said in a briefing in Tokyo Thursday. The company is targeting ¥5 trillion in sales in about five years.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.