Japan’s Fast Retailing has announced its financial results for the nine months ending in May. The company achieved impressive gains in revenue and profit, with net sales rising 22.7 percent year on year to JPY659.0 billion (USD7.55b). Operating income rose 27.1 percent year on year to JPY123.4b (USD1.41b) and net income increased by 35.2 percent year on year to JPY67.1b (USD768.5 million).
While clothing brand Uniqlo enjoyed success internationally, it suffered in Japan, where it experienced a contraction within the last three months, forcing projected earnings to be reassessed. However, Fast Retailing is confident that Uniqlo will increase its net sales by 13 percent to JPY608.0b (USD6.96b) by the end of the fiscal year, based on the exceptional performance in the six months prior. The international segment of Uniqlo fared much better, with brand awareness increasing in both Europe and the US, along with a well-received expansion into Asia.
The company opened its fourth global flagship store, the Shanghai West Nanjing Road Store, in May, which in turn helped secure further double-digit gains for same-store sales in China and Hong Kong. Operations in South Korea continued favourably with business developing as planned. The company estimates that Uniqlo International will increase its net sales by 93.2 percent to JPY73.0b (USD836.2m) and increase its operating income by 301.2 percent to JPY6.5b (USD74.5m).
Low-price clothing brand g.u. performed as expected, continuing its strong performance. Fast Retailing also merged its footwear division with Uniqlo and hopes to utilise this merger to transform Uniqlo Shoes into a specialty retailer. Woman’s clothing brand Cabin slipped in sales and revenue, but this was according to estimates. In total, Fast Retailing predicts that its Japanese Apparel segment will have shrunk in sales by 8.8 percent to JPY47.0b (USD538.5m) by the end of the fiscal year.
Internationally, clothing brand Comptoir des Cotonniers experienced mild success, performing to plan and gradually expanding, along with lingerie brand Princesse Tam.Tam. International sales are predicted to rise 51.1 percent to JPY84.0b (USD962.8m) and operating income is expected to rise by 77.3 percent to JPY6.5b (USD74.5m).