Fast Retailing shares are up sharply after Uniqlo sales in Japan rose sharply in May

By Kosaku Narioka

Shares of Fast Retailing Co. rose sharply on Friday morning after the apparel company said Uniqlo same-store and e-commerce sales in Japan rose 17.5% in May from a year earlier.
Shares recently traded 5.9% higher at 66,890 yen after rising 6.5% earlier.
 
Fast Retailing said after the market closed on Thursday that sales of Uniqlo in Japan rose sharply, thanks to robust business during the spring break and anniversary campaigns, as well as strong summer clothing sales. The number of customers increased by 9.6%, while the spend per customer increased by 7.3%.
 
Nomura analysts Hisahiro Yamaoka and Daiki Kobayashi said in a research note that spending per customer likely increased due to higher-priced goods being sold and discounts being cut as consumers sought outwear for outings. Selling trends at Uniqlo appear to be steadily improving, the analysts said.
 
In April, Fast Retailing forecast a 3.1% increase in sales to 2.2 trillion yen ($16.94 billion) and a 12% increase in net income to 190.00 billion yen for the fiscal year ended August.
 
Shares in retail rival Ryohin Keikaku rose 4.5% after May sales of MUJI in Japan rose 12% year over year. The Nikkei Stock Average rose 1.1%.
 
 
Write to Kosaku Narioka at kosaku.narioka@wsj.com