Fast Retailing Raises Forecast on Profit

Fast Retailing, the owner of Fast Retailing — Uniqlo, reported a 29.4% increase in operating profit for the three months through February, exceeding analyst estimates. The company raised its full-year operating profit forecast to 700 billion yen, anticipating a fifth consecutive year of record earnings, driven by strong international growth, especially in Europe and North America. Despite this positive outlook, Fast Retailing acknowledges potential impacts from the Middle East crisis, which has caused oil prices to soar and disrupted supply chains. Teijin — Teijin Frontier, a supplier, has already announced a 20% price hike on polyester fiber due to higher oil costs, which could affect Fast Retailing — Uniqlo's production. Other European retailers like H&M and Cooperative have also warned of potential price increases and reduced consumer demand from a prolonged conflict. Fast Retailing's domestic sales in Japan are supported by tourism and a weak yen, while growth in China has slowed. The company also faces ongoing pressure from tariffs imposed by the United States. Tadashi Yanai, Fast Retailing's founder, expressed concerns about the impact of oil prices and geopolitical conflicts on supply chains.