Uniqlo owner's Western bet pays off as profit surges 32%

Tokyo: Japan's Fast Retailing, owner of the global clothing brand Uniqlo, reported a forecast-beating 32% rise in annual profit on Thursday, driven by strong sales in North America and Europe, which together overtook China as its largest market for the first time. The shift marks a milestone for the retailer, which has relied on China as its largest overseas market for years, supported by nearly 900 Uniqlo stores.

Its push into newer markets in recent years has helped cushion the impact of weakening sales in China, where a prolonged slowdown in consumer spending and intensifying competition from domestic brands have pressured foreign companies across sectors ranging from autos to luxury goods and retail.

Company founder and president Tadashi Yanai on Thursday reiterated a goal to reach annual sales of 10 trillion ($63.2 billion), up from under 4 trillion in the just-completed year, by adding about 500 billion each year.


"When you say 500 billion, in our clothing retail sector, that's a massive company," Yanai said. "It's roughly the equivalent of one such company being created every year," he said.

"If you look around the world, there are regions everywhere with that sort of potential."

Yanai, Japan's richest man, has long said he wants to make Fast Retailing the world's top clothing retailer, putting the company in competition with Zara owner Inditex and Sweden's H&M.

Combined revenue from North America and Europe reached 877.6 billion, surpassing 724 billion it earned from greater China.