Fast Retailing 9-Month Profit Surges 52% on Uniqlo Sales

TOKYO, Japan — Fast Retailing Co.'s profit increased 52 percent in the nine months ending May as Uniqlo casual-wear sales grew in Japan, boosted by the popularity of new products such as a hoodie that protects against the sun.

Net income in the period was 132.4 billion yen ($1.1 billion), against 87.3 billion yen a year earlier, according Yamaguchi, Japan-based Fast Retailing on Thursday. Operating profit from September to May was 189.3 billion yen, up 36 percent.

Uniqlo “gained a positive reception” with moves to create new demand by enhancing its core products, such as introducing mesh parkas with ultraviolet protection, Nomura Holdings Inc. analyst Masafumi Shoda wrote before the results. Fast Retailing is expected to beat its own guidance on strong Japan sales and gains in translated foreign exchange due to yen weakness, he said in a report.

Fast Retailing is targeting sales of 5 trillion yen by 2020, as Asia's biggest clothing retailer aspires to become the world leader. The company's priorities are for the stable growth of Uniqlo in Japan, while speeding up the label's worldwide expansion and restructuring its global brands unit, billionaire Chairman Tadashi Yanai has said.

The retailer maintained its annual net income forecast at 120 billion yen.

By Monami Yui; editors: Stephanie Wong, Daryl Loo, Dave McCombs.