Investing.com-- Uniqlo owner Fast Retailing (TYO:9983) on Thursday announced a near 32% jump in its annual operating profit, clocking a fifth consecutive record profit as the apparel maker benefited from strong Japanese and overseas demand.
But the company forecast that earnings growth in the current financial year was likely to slow, although it still forecast another year of record-high earnings.
Fast Retailing said operating profit for the fiscal year ended August 31 rose to 743.13 billion yen ($4.70 billion) from 564.27 billion yen a year ago. The print beat the company's own forecast of 730 billion yen and was also above LSEG estimates of 726.45 billion yen.
Revenue grew 16.6% year-on-year to 3.963 trillion yen, while net profit attributable rose 25.3% to 542.52 billion yen.
The Uniqlo owner forecast current year operating earnings of 830.00 billion yen, representing nearly 12% year-on-year growth. Annual revenue is expected at 4.450 trillion yen, up 12.3% from the prior year.
While the print does point to sustained growth for the apparel maker, it does herald a slowing in the pace of growth from the prior year.
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Uniqlo– the company's flagship brand– clocked revenue growth across all of its regions, as the company continued to aggressively expand the brand's international footprint in major overseas markets across Europe, Asia, and North America.
But returns from overseas businesses were partially dulled by recent strength in the Japanese yen, which firmed on more interest rate hikes and intervention by the Bank of Japan.
"We aim to continue to open new high-quality stores and enhance product development and branding at UNIQLO International as the growth pillar of the Fast Retailing Group," the company said in a statement.
Uniqlo Japan also remained a major earnings driver, clocking record revenue and profit. Annual same-store sales in Japan rose 5.1% year-on-year.
Fast Retailing said it planned to increase its network to 3,545 stores globally by the end of August 2027, from 3,510 stores as of end-August 2026.
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