Revenue up, profit down for Fast Retailing Group

Revenue rose but profit fell for Uniqlo parent The Fast Retailing Group for the first nine months of its latest fiscal year, from September 1 last year to May 31.

Consolidated revenue for the group reached ¥1.4346 trillion (US$215 billion), a rise of 6.4 per cent year-on-year.

For its three business segments, Global Brands saw both revenue and profit rise, while both Uniqlo Japan and Uniqlo International had more revenue but less profit.

Foreign-exchange losses were down ¥43.4 billion to ¥23.4 billion, resulting in consolidated profit before income taxes dropping by a considerable 41.9 per cent.

However, consolidated revenue rose 6.2 per cent and consolidated operating profit grew by 18.6 per cent, thanks to a recovery in performance at both Uniqlo Japan and Uniqlo International.

The group continued to boost Uniqlo store numbers, opened global flagship stores and large-format stores in major cities, and also expanded its low-priced GU casual fashion brand.

On the product side, Fast Retailing sought to boost awareness and visibility of the Uniqlo brand through collaborations with designers and artistic directors from other brands.

In April, the company launched a next-generation distribution centre in Tokyo, and is pressing ahead with plans to open distribution centres elsewhere in Japan as well as internationally, starting in China and the US.

There are also plans to accelerate GU store openings outside Japan.

In Japan, the eCommerce segment continued to grow strongly, with online sales rising 40.6 per cent to 5.5 per cent of total sales. On-ground stores increased by two to 846 at the end of May, including 39 franchise stores.

Recovery

Uniqlo International’s revenue for the nine months reached ¥532.8 billion (up 10.6 per cent) while its operating profit of ¥42.2 billion was an 18.7 per cent fall. However, both revenue and profit grew in the third quarter (March to May) by 5.3 and 41.1 per cent respectively.

Profits recovered for Uniqlo Greater China (including Hong Kong and Taiwan) while Uniqlo Southeast Asia and Oceania (Australia, Indonesia, Malaysia, Singapore, Thailand and the Philippines) continued both revenue and profit growth.


Uniqlo South Korea continued to struggle, losing profits in the face of a sluggish economy and increasingly fierce competition.

The total number of Uniqlo international outlets grew by 161 to 928 stores.

Under its CSR policy, Uniqlo joined the Nippon Foundation opening the Tsurumi Children’s Hospice in Osaka in April. This is for children with life-threatening illnesses and is the first community children’s hospice in Japan.

Following the Kumamoto earthquake this year, Fast Retailing provided emergency clothing for victims, donating 13,600 items such as underwear, socks and loungewear.

WIth its global partnership with the United Nations High Commissioner for Refugees (UNHCR), helped collect clothing for refugees and displaced persons on World Refugee Day. A special project exceeded its goal of collecting 10 million articles of clothing with a total of 12.81 million items. This involved 112 affiliated companies in 846 locations, 238 educational institutions, 28 student organisations, and communities in 16 countries and regions in which Uniqlo has business.

Comments

Comment Manually