TOKYO, Japan — Fast Retailing Co., Asia's largest clothing retailer, forecast a 34 percent rise in net income after Uniqlo sales in Japan grew 14 percent and revenue came in higher than expected in the last fiscal year.

Net income will probably be 100 billion yen ($927 million) for the year ending August 2015, the Yamaguchi, Japan-based company said today in a statement. Sales may rise 16 percent to 1.6 trillion yen in the year, it said.

Fast Retailing, led by billionaire Tadashi Yanai, opened stores including in China, the U.S., and Europe, and bought foreign brands as it sought growth overseas. The clothing chain has run into obstacles, as higher costs and weak demand forced it to cut its forecast last April, and losses at its J Brand unit in the U.S. led it to do so again in July.

The company said net income dropped 29 percent to 74.5 billion in the year ending August 2014, while sales rose 21 percent to 1.38 trillion yen.

Yanai, who reclaimed his place as Japan’s richest person after he was briefly overtaken last month by Softbank Corp.’s Masayoshi Son, has plans to turn the retailer he inherited from his father into the world’s largest clothing chain, and has set a target of 5 trillion yen in sales by 2020.

The company, which derives more than half of its revenue in Japan, reported last week that same-store sales at the Japanese Uniqlo stores grew almost 20 percent from a year ago, the fastest improvement since August 2013.

Fast Retailing’s shares rose 1.5 percent to 37,255 yen at the close of trading in Tokyo before the earnings announcement. The shares have dropped 14 percent this year, compared with a 3.2 percent decline in the Topix.

The company’s net income decreased 29 percent to 74.5 billion yen for the year ended August 2014, according to today’s statement.

By Ma Jie; editors: Stephanie Wong, Daryl Loo.