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Uniqlo operator Fast Retailing's Q2 profit jumps 33%; raises forecast
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Uniqlo operator Fast Retailing's Q2 profit jumps 33%; raises forecast
Apr 10, 2025 12:17 AM

TOKYO, April 10 (Reuters) - The Japanese operator of

Uniqlo on Thursday said earnings soared 33% in its second

quarter, the last period of calm before the U.S. imposition of

import tariffs clouded the global clothing chain's aim for a

fourth successive year of record profit.

Fast Retailing ( FRCOF ) said operating profit was 146.7

billion yen ($999.9 million) for the three months through

February. That compared with 110.4 billion yen for the same

period a year prior and the 125.9 billion yen average of six

analyst estimates compiled by LSEG.

The company raised its full-year operating profit forecast

to 545 billion yen from a previous guidance of 530 billion yen.

From one store 40 years ago in Hiroshima, western Japan,

Uniqlo has grown to more than 2,500 locations worldwide, selling

inexpensive fleeces and cotton shirts made primarily in China

and other Asian manufacturing hubs.

That business model now stands at odds with sweeping tariffs

that were announced and then delayed by U.S. President Donald

Trump, whipsawing global markets and prompting retaliation from

trading partners.

Trump last week announced massive tariffs on dozens of

countries, including a 24% duty on non-automobile products from

Japan. He backtracked on Wednesday, pausing the measures for 90

days, but kept pressure on China by raising tariffs on that

nation's goods to 125% from 104%.

Fast Retailing ( FRCOF ) has in recent years looked to North America

and Europe for growth due to a slowing economy in China, its

largest overseas consumer market with more than 900 Uniqlo

stores on the mainland.

The majority of Uniqlo products sold in the United States

are produced in Southeast Asia.

Founder Tadashi Yanai, Japan's richest man, has long

been an advocate of free trade and has defended the company's

business with China amid criticism of human rights abuses on the

mainland.

($1 = 146.7100 yen)

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