NEW YORK, Oct 10, 2001/--- Japan's Fast Retailing Ltd, creator of the popular Uniqlo brand, has announced a net profit increase of 71.5 percent for the year ended August 2001.

Despite flagging consumption in Japan, Fast Retailing still managed to record a net profit of $492 million. It attributes the rise to its intensive advertising campaign. It also opened 111 new stores during the year. With 519 outlets nationwide, a spokeswoman says the company plans to open 60 new stores this year.

Two weeks ago, Fast Retailing branched into an overseas market for the first time, opening four Uniqlo outlets on the same day in and around London. It plans to launch at least 50 stores in the UK by 2003 and then consider other markets, including locations in mainland Europe and the U.S.

Fast Retailing's Uniqlo has been dubbed Japan's equivalent to Gap. While department stores once dominated Japan's retail scene, Uniqlo outlets have lured recession-conscious consumers with its discount prices.

Uniqlo's expansion into the U.S. would pose yet another competitor to struggling stateside Gap stores that are already battling other overseas retailers, like H&M and Zara.

Uniqlo was founded as a menswear retailer, but now also carries womenswear and children's wear. It is known for selling low-priced basic styles in a rainbow of colors. The fall collection includes $29 jeans and $7.50 cotton tops.

With American retailers announcing slumping sales and profit warnings left and right, Fast Retailing's 71.5 percent profit increase sounds like quite a significant jump. For a company that spent recent years riding incredible momentum, however, it's rather modest. A year earlier Uniqlo's parent recorded 406 percent growth.

For the year to August 2002, Fast Retailing anticipates a net profit of about $564 million.