AEON has revealed that its net profit for the quarter ended 20 May increased by 11% from the same period a year ago, prompting the Japanese retail giant to raise its financial guidance for the full year.

Aeon said that the rise in profits was driven by a recovery in its parent company’s cloths retail segment and contributions from other group companies.

For the quarter, group net profit rose to JPY12.98bn (US$113.2m) – up from JPY11.75bn reported in the comparable period of the previous year. Group operating revenue increased 9.2% to JPY1.13tn. Operating profit increased an impressive 27%, climbing to JPY33.72bn, the company stated.

The group raised its earnings outlook for the fiscal year, which ends in February, predicting operating profits of between JPY200bn and JPY210bn – up form the JPY185-195bn predicted in April. Aeon increased its predicted revenues from JPY4.67tn to JPY4.8tn.