UPDATE 1-Japan's Fast Retailing lifts outlook as sales boom

*Q1 profit up 46 pct, annual outlook raised 6.5 pct

*Same-store sales at Uniqlo casual clothing chain up 17.7 pct

*One of few retailers to thrive amid economic slump (Recasts, adds details)

By Taiga Uranaka

TOKYO, Jan 9 (Reuters) - Japan's Fast Retailing Co (9983.T) booked a 46 percent gain in first-quarter profit and lifted its annual forecast, bucking an industry downturn as cost-conscious consumers sought out its Uniqlo casual clothing chain.

Many Japanese retailers have cut their earnings outlooks amid the global economic downturn, as consumers rein in spending on clothing and other non-grocery items.

Aeon Co Ltd (8267.T), Japan's second-largest retailer, this week warned it may post its first annual net loss in seven years, hit by flagging sales, a writedown at U.S. unit Talbots (TLB.N) and accounting changes. [ID:nT366933]

But Fast Retailing, which has about 760 Uniqlo stores in Japan as well as over 50 overseas including in the United Kingdom, China and South Korea, has successfully attracted cost-conscious consumers with its basic and cheap apparel lines.

Same-store sales at its Uniqlo stores in Japan rose 17.7 percent during its first quarter, moving at a much stronger pace than the modest 1.4 percent growth for the year to August forecast by the firm.