By Kosaku Narioka
Fast Retailing Co. shares rose sharply Friday morning after the apparel company said Uniqlo same-store and e-commerce sales in Japan increased 17.5% in May from a year earlier.
The shares were recently 5.9% higher at 66,890 yen after rising as much as 6.5% earlier.
Fast Retailing said Thursday after market close that Uniqlo sales in Japan rose sharply thanks to robust business during the spring holiday season and anniversary campaigns, as well as strong sales of summer clothes. The number of customers climbed 9.6%, while spending per customer increased 7.3%.
Nomura analysts Hisahiro Yamaoka and Daiki Kobayashi said in a research note that spending per customer increased due likely to sales of higher-priced goods and curbing of discounts as consumers sought clothes for outings. Sales trends at Uniqlo appear to be improving steadily, the analysts said.
In April, Fast Retailing projected revenue to rise 3.1% to Y2.200 trillion ($16.94 billion) and net profit to increase 12% to Y190.00 billion for the fiscal year ending August.
Shares of retail peer Ryohin Keikaku were 4.5% higher after MUJI’s same-store sales in Japan rose 12% in May from a year earlier. The Nikkei Stock Average was up 1.1%.
Write to Kosaku Narioka at email@example.com