Fast Retailing Co. Ltd. (06288.HK), which operates Japanese apparel chain store Uniqlo, is planning to ramp up its overseas expansion plan amid a falling yen, the Hong Kong Economic Journal reported Monday.
The weak currency has driven up costs, forcing the company to raise product prices, the report said, citing chief financial officer Takeshi Okazaki.
Last year, the yen fell to 120 against the US dollar from 80, raising the cost of imported raw materials by 50 percent, he said.
Okazaki said the company hedged its foreign exchange holding to mitigate the risks from a further weakening of the yen.
It is planning to open 100 new Uniqlo stores each year in the Greater China region. It has 23 stores in Hong Kong.
Its second-tier brand GU is planning to expand to Hong Kong after opening in Shanghai, Taiwan and other overseas markets.
Uninqlo posted 57.2 percent growth in operating profit overseas for its first fiscal quarter to November.
The growth compares with a 21.3 percent increase in Japan.
Translation by Vey Wong
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