East meets West led by Fast Retailing and Billabong

Thursday was a session with a strong Eastern accent,

as main players were Japanese Fast Retailing and Australian Billabong. While the parent company of Uniqlo sees it profit forecast below estimates, the surfwear firm tumbles after a potential new owner shows its concerns.

Fast Retailing Co. is not so fast lately, as the parent company of Uniqlo has forecasted annual profit below analyst estimates, arguing a slowdown in global economic growth that is cutting consumer spending.

Despite the weaker forecast, the Japanese apparel group is decided to push its revenue over  the 1 trillion yen (12.8 billion dollars) threshold next year, the company said Thursday. Net income is expected to be close to 84.5 billion yen (1.08 billion dollars) in the year ending August 2013, below the 87.5 billion yen average estimate of 21 analysts compiled by Bloomberg.

“What is driving the company’s profit is the overseas Uniqlo business,” said to Bloomberg Mikihiko Yamato, deputy head of research for JI Asia in Tokyo. “Whether or not their overseas growth is continuing would be the biggest concern.” Net income rose 32 percent to 71.7 billion yen for the last fiscal year, below the 78.7 billion yen average estimate of 20 analysts compiled by Bloomberg.

Not so far, Billabong International gained 1 percent after the trading session. It is a pretty optimist close compared to a week ago, when the stock (BBG) closed 27 percent below a takeover offer from TPG International LLC after the surfwear maker said the buyout firm had concerns about its 694 million Australian dollars (710 million dollars) bid, reported ‘Businessweek’.

TPG and its advisers had “expressed concerns in relation to some issues” and discussions on the sale process continue, Billabong said in a regulatory statement issued earlier this month. However, the company didn´t say what the issues were.

In Europe, Burberry was the star performer among London blue chips, with shares rising nearly 7 percent to 1072p.  Kate Calvert of Seymour Pierce said although uncertainty remained, ‘we are reassured that demand has not fallen off a cliff and so believe the shares have been oversold’. She upgraded the shares from a ‘hold’ to ‘buy’, reported ‘Citywire’.