Pursuits

Fast Retailing Profit Gains as Cost Reductions Raise Margins

  • Operating income increases about 80 percent in second quarter
  • Sales at retailer drops 0.4 percent as Japan demand slumps
Photographer: Shiho Fukada/Bloomberg
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Uniqlo operator Fast Retailing Co.’s second-quarter profit surged as Asia’s largest clothing chain reined in costs and boosted margins at its overseas operations.

Operating income gained about 80 percent to 42.1 billion yen ($386 million) in the three months through February, based on first-half earnings the Japan-based clothing retailer released Thursday. That compares with the 38.5 billion-yen average of estimates by analysts. Revenue dipped slightly to 489 billion yen from a year earlier.