Japan’s Uniqlo owner finds success abroad, downplays trade war risk

Bloomberg

Fast Retailing shares climbed the most since January on signs that the retailer’s steady expansion in overseas markets, now headlined by the face of Roger Federer, is bearing fruit even in the face of risks from an escalating trade dispute.
The Uniqlo operator drew on robust overseas sales and a successful early summer line to help boost third-quarter results. Operating profit climbed to $609 million in the three months ended on
May 31, according to a company statement. That compares with analysts estimates for 59 billion yen.
Fast Retailing stock is up 15 percent so far this year, compared with a 5.3 percent drop for the benchmark Topix index.
Billionaire Chairman Tadashi Yanai, who has roped in tennis star Federer as the brand ambassador for Uniqlo, has been investing heavily on expanding overseas — especially in China and more recently in Europe.
While the back-and-forth trade spat between Beijing and Washington has created uncertainty in the global economy, Chief Financial Officer Takeshi Okazaki said the dispute has a limited impact on the company’s supply chain.
“We think it’s more likely that they won’t put a tariff on clothing from China, because it won’t be a good thing for American consumers,” Okazaki said in Tokyo.