Uniqlo parent company Fast Retailing is joining others in the fast fashion world by raising prices on fleece items at a time when shoppers are looking for every possible bargain they can find — but seem not to mind paying full price or a higher one for the items they truly want.
Fast Retailing was also boosted by better-than-expected sales during the company’s Golden Week and Uniqlo anniversary sales, according to a company press release Thursday (July 14).
The weakness of the yen played some role in Fast Retailing’s third-quarter performance, with the company reporting a 57% increase in profit to 237.8 billion yen ($1.7 billion), but the company noted its profit still hit record highs even without the so-called foreign exchange boost.
Same-store sales rose 7.8% in the third quarter, while revenue for Fast Retailing totaled 198.4 billion yen (more than $1.4 billion) in the three-month period through May 2022, up 8.7%, while the company’s operating profit was up 76.2% to 38.1 billion yen (almost $274 million).
Fast Retailing is riding a wave of profitability for the first three quarters of the fiscal year, leading the company to revise its forecast for the year upward.
“While the depreciation of the Japanese yen boosted sales and operating profit in yen terms, the segment also achieved a record performance in local currency terms thanks primarily to significant revenue and profit increases from the South Asia, Southeast Asia & Oceania region and the North America and Europe (excluding Russia) regions,” the company press release says.
Related: Levi’s Closing in on 50-50 Split as Direct-to-Consumer Sales Accelerate
Elsewhere in the fast fashion world, Levi’s is moving closer to a 1:1 physical-to-digital ratio, as redesigned stores, improved websites and apps and changing consumer habits combine to drive growth in digital the likes of which Levi Strauss & Co has never seen.
Also read: Shoppers Embrace H&M’s Full Prices, Driving Higher Sales
Last month, fashion retailer H&M said it expects to raise prices in the coming year following a report that shows its shoppers don’t mind paying full price. The Swedish company’s net sales increased by 20% during the six-month period from Dec. 1, 2021 to May 31, 2022.
Read next: Zara Limits Free Returns to in-Store Only, Reports No Impact on Sales
Fast fashion giant Zara recently updated its return policy for eCommerce purchases. Inditex, is now charging customers the equivalent of $2 to $4 if they want to return items by mail.
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