FAST RETAILING

Fast Retailing posted a record annual profit and forecast further profit growth. Despite the positive numbers, the stock fell about 4 percent. The news came amid largely positive sentiment across Asian markets. » More on finanzen.net

Fast Retailing reported record fiscal results with revenue up 16.6% to $25.1bn and net profit up 25.3%, driven by a 26.2% rise in international revenue and strong gains in North America and Europe. For the first time combined U.S. and European revenue exceeded Greater China, and management aims to grow annual revenue in North America and Europe to about $6.3bn each within five years while increasing larger, high-quality Uniqlo stores. Inditex remains substantially larger, leaving questions about whether Fast Retailing can sustain double-digit growth as it scales in the U.S. » More on forbes.com

Fast Retailing’s stock fell 3.4% to ¥68,030, marking the lowest level since April 9, after Uniqlo Japan reported weaker like-for-like sales for August. Like-for-like sales (including online) fell 1.3% year-on-year, while total sales declined 2.2%; customer numbers dropped 9.1%, but average spend per customer rose 8.6%. The company cited cooler temperatures and adverse weather conditions as reasons; temporary store closures in regions affected by earthquakes and heavy rain were excluded from the calculations. Year-to-date through August, Uniqlo Japan’s like-for-like sales remain up 5.1% and total sales are up 5.5%. » More on de.investing.com

Uniqlo has more than tripled sales in Europe and North America since 2021 and plans to open 40 new stores per region each year to secure Fast Retailing’s global growth. Core strengths include technical fabrics like Heattech, a tight supply chain and a small, scalable product range, which give the group competitive advantages. Challenges remain a lower online penetration, tough competition from Shein and Inditex, market differences in the US and reputational risks around Xinjiang cotton. Another uncertainty is the succession of founder Tadashi Yanai and whether management can sustainably carry out its expansion strategy. » More on deraktionaer.de

Fast Retailing reported an operating quarterly profit of ¥213.79 billion (+45.7%) and raised its full-year forecast to ¥730 billion. Despite the strong figures, management — notably CFO Takeshi Okazaki — warned that the yen’s depreciation reduces overseas earnings when converted back. The company also cited a heatwave in Europe as a potential drag on summer sales, after which the share price fell about 4% and markedly underperformed the market. » More on de.investing.com