Fast Retailing Co. said Thursday its full-year profit may rise 25 percent as its +J brand, overseen by German designer Jil Sander, and other new clothing lines boost sales at its Uniqlo chain.
Net income may be ¥62 billion for the 12 months ending next August from ¥49.8 billion last year, Japan's biggest clothing retailer said. That compares with the ¥64.6 billion average estimate of 18 analysts compiled by Bloomberg.
Cashmere short-sleeve sweaters, skinny jeans and other hit products are driving sales even as job losses and wage cuts chill household spending. Chief Executive Officer Tadashi Yanai, who owns 27 percent of the company, is expanding Uniqlo overseas, opening a flagship store in Paris this month with plans to add major stores in Shanghai and Moscow next year.
The retailer forecast sales to grow 17 percent to ¥798 billion this year, with operating profit to increase 11 percent to ¥120 billion.
Uniqlo has reported year-on-year domestic sales growth for every month except two over the past year, with revenue surging 32 percent last month.
By contrast, total retail sales fell for a 12th month in August, extending the longest losing streak since 2003, according to a government report last week.
The company plans to increase Uniqlo stores to 4,000 worldwide by 2020 from 866 in August.
Based in Yamaguchi, the company aims to boost sales to ¥5 trillion by 2020. It expects China, the United States and Europe, and Asia excluding Japan and China, to each account for ¥1 trillion in revenue by 2020.
The retailer also owns the Princesse tam.tam, Theory and Comptoir Des Cotonniers, Zazie and Enracine brands.