Fast Retailing and Uniqlo

Fast Retailing, the owner of Uniqlo, keeps posting record profits but one analyst is uncertain

You must have heard about the popular Japanese brand named Uniqlo. However, you might not be aware that Uniqlo has been owned by Fast Retailing which is its parent company. Also, Fast Retailing has announced record profits very recently. But an analyst is just a little sceptical about Fast Retailing’s growth and says that the Japanese giant could see a “period of slow growth”. This comes even after Japan’s Fast Retailing announced that it had booked record profit for the third-straight year, sending shares higher in Friday trading.

Although we know that the company faces headwinds in China and South Korea, the company has growth opportunities online and in India. Now, the analyst who predicts a period of slow growth spoke to CNBC on Friday about his analysis. While Fast Retailing announces its record profits, the shares went high and about 2.5% higher in Friday trading. Operating profit rose 9.1% in the year ended Aug. 31, in line with market expectations.

The analyst Peter Boardman told CNBC that “It’s a great, great name, great brand but there’s a lot of uncertainty,” and added that “Things are slowing down.” He also seems to have a point as he reveals that “35% of their profits come out of China. So any sort of slowdown in China is certainly negatively affecting Fast Retailing or Uniqlo,”

“Currently about 12% of revenues are online, they want to grow that to 30%,” he said. “That certainly is a great opportunity but it’s a slow opportunity and probably won’t grow as quickly.” while hinting that even though the brand could take a hit in China but it has opportunity to grow in India and online. The analyst added that “Fast Retailing has enough of a brand to be able … to be successful,” and that “Their products are great, their product line-up is great.”

Saqib Malik

Saqib is an established technical expert with 9+ years of background in Web Development and Digital Marketing. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. He plans to take CloutNews forward with the consistent support from you readers, friends and family! You can contact him at realsaqibmalik@gmail.com or Saqib@cloutnews.com