(Bloomberg) -- Japanese apparel maker Fast Retailing Co.'s shares surged the most in 21 months after its first-quarter earnings beat the analyst expectations.
The stock jumped as much as 9.1% in Tokyo trading, the most since March 2020. It had declined more than 40% from a record high in Feb. before the company's earnings announcement. It traded 7.1% higher at 63,350 yen as of 10:19 a.m. local time.
Operating profit was 119 billion yen ($1 billion) for the three months ended November, the company said on Thursday after markets in Tokyo closed, beating the analysts' projection of 99 billion yen.
The upside surprise lead us to raise its full-year operating forecast by 14%, Michael Allen, an equities analyst at Jefferies Japan Ltd. wrote in a note to clients. The surprise was “a nice bonus” added given that the stock has been one of the most oversold large-cap stocks in the market, he said.
Sales rose 1.2% to 627 billion yen, compared with the analyst projection of 615.5 billion yen. The retailer kept its profit forecast for the current fiscal year intact at 270 billion yen.
Read: Uniqlo Sees Need to Raise Prices Due to Higher Material Costs
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