Fast Retailing Expected to Post Lower Second-Quarter Net Profit -- Earnings Preview

Dow Jones
04-09
 

By Kosaku Narioka

 

Fast Retailing is scheduled to report its second-quarter results on Thursday. Here's what you need to know:

 

NET PROFIT: The Uniqlo owner is expected to post a 0.2% decline in net profit to 87.9 billion yen, equivalent to $600.9 million, for the three months ended Feb. 28, according to a poll of analysts by Visible Alpha. That would compare with Y88.11 billion net profit in the year-earlier period.

 

REVENUE: Second-quarter revenue is estimated to have risen 8.8% from a year earlier to Y857.9 billion, according to the Visible Alpha poll.

 

The stock has fallen 19% so far this year through Tuesday, largely in line with the broader Japanese market. That followed a 54% surge in 2024, driven in part by its success in global expansion.

 

WHAT TO WATCH:

--For the fiscal year ending in August, the company has projected revenue will rise 9.5% to Y3.400 trillion and net profit will increase 3.5% to Y385.00 billion. Investors will be watching for any changes to the annual guidance.

--The apparel retailer's operating profit margin fell to 17.6% in the first quarter from 18.1% a year earlier. Investors will be monitoring margin trends as businesses globally contend with relatively high inflation.

--The company plans to increase its global store count to 3,698 globally by the end of August, primarily by adding Uniqlo stores overseas, up from 3,595 a year earlier. Any updates on store-opening plans will be in focus.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

April 08, 2025 22:49 ET (02:49 GMT)

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