Fast Retailing, the owner of apparel retailer Uniqlo, has reported a record annual net profit thanks to stronger global sales. As a result, the company's shares have risen sharply.
Strong Financial Performance
On Thursday, after market close, Fast Retailing announced that its net profit for the fiscal year ended Aug. 31 increased by 8.4% to a record high of Y296.23 billion ($1.98 billion). This impressive growth was driven by significant sales growth across the world.
Diversifying Revenue Sources
Fast Retailing's operating profit for North America experienced a remarkable surge of 92%, while in Europe (excluding Russia), it climbed 82.5%. These positive results have helped the company diversify its earnings away from its previous reliance on Japan and China.
Fourth-Quarter Performance
In the fourth quarter, Fast Retailing achieved a net profit of Y57.71 billion, surpassing the net profit of Y238.52 billion in the preceding nine months. These numbers beat analysts' estimates, which had predicted a net profit of Y25.07 billion.
Positive Outlook
Looking ahead, Fast Retailing forecasts further growth in the new fiscal year. The company expects its net profit to increase by 4.6% to Y310.00 billion, and revenue to rise by 10% to Y3.050 trillion. To achieve this, Fast Retailing plans to open more Uniqlo stores overseas.
Conclusion
Fast Retailing's strong financial performance and projected earnings growth have led to a significant rise in its shares. With a focus on expanding Uniqlo's presence globally, the company is well-positioned to continue its success in the future.
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