TOKYO, Oct 11 Reuters The Japanese operator of global clothing chain Uniqlo is expected to blow past last year39;s record profit when it reports results on Thursday, benefiting from a recovery in China and the yen39;s slide.

Fast Retailing reported record thirdquarter earnings in July and raised its fullyear forecast as business in China, its largest overseas market with more than 900 stores, recovered from a pandemicled slowdown.

Operating profit for the fiscal year through August is expected to rise 26 to 374.6 billion yen 2.52 billion, according to the average estimate of 12 analysts collected by LSEG.

The company has forecast 370 billion yen, which would far exceed last year39;s 297.3 billion yen.

Fast Retailing, founded by Japan39;s richest man Tadashi Yanai, is a bellwether for retailers operating in China, the world39;s secondbiggest economy, where sales have started to rebound after strict COVID19 controls were rolled back.

The yen, meanwhile, has weakened about 12 versus the dollar so far in 2023, giving a boost to Japanese companies that get most of their sales outside of the country.

Consensus estimates could be underplaying the company39;s results given the recovery in China, the weak yen, and strong performance in the United States and Europe, said LightStream Research analyst Oshadhi Kumarasiri.

I39;m expecting a positive earnings surprise and a strong set of guidance for next year, added Kumarasiri, who publishes on the Smartkarma platform.

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