JAPAN

Fast Retailing reported record quarterly profits on brisk business at its overseas Uniqlo stores, but cautioned that profits of the affordable clothing line were set to drop in Japan amid discounting of summer items. Hit hard by an uneven recovery in local consumer spending, retailers in Japan have been focusing on overseas markets — a shift that has paid off for Fast Retailing whose offshore Uniqlo stores have outshone those at home. The retailer flagged its global ambitions last week when tennis star Roger Federer strode onto the court at Wimbledon in Uniqlo-branded whites, in a major sponsorship deal worth around US$30 million annually. Uniqlo’s international sales rose 24% in the third quarter ended on May 31.