Uniqlo parent company Fast Retailing is expected to report a record profit for the third quarter of 2023, thanks to a recovery in China.
Analysts surveyed by Refinitiv expect Fast Retailing’s operating profit to reach 102.4 billion yen (US$733.37 million) in the three months through May, up from 81.8 billion yen posted last year.
The strong profit growth is being driven by a number of factors, including the recovery in China, where Uniqlo has around 900 stores.
The country’s economy has been recovering in recent months, as COVID-19 restrictions have been eased.
Fast Retailing is also benefiting from strong sales growth in other regions, such as Southeast Asia, North America, and Europe.
The company’s full-year profit forecast is already at a record high of 360 billion yen.
If it can achieve this forecast, it will be the first time that Fast Retailing has reported annual profit of more than 300 billion yen.
The strong profit growth is a positive sign for the global apparel market.
It suggests that consumers are still willing to spend on clothing, even in an environment of rising inflation.
It is also a positive sign for Uniqlo, which is one of the world’s leading apparel retailers.
The company has been able to weather the storm of the COVID-19 pandemic and is now well-positioned for future growth.
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