Fast Retailing posts 28.6 percent jump in Q1 operating profit

The Fast Retailing Group has announced that the company generated rises in both revenue and profit in the first quarter of fiscal 2018, or the three months from September 1, 2017 to November 30, 2017. Consolidated revenue totalled 617 billion Japanese yen (5.5 billion dollars), representing a rise on 16.7 percent and operating profit reached 113.9 billion Japanese yen (1.02 billion dollars), rising 28.6 percent. The consolidated gross profit margin improved by 0.2 point year-on-year. Profit before tax rose to 117.8 billion Japanese yen (1.05 billion dollars), a rise of 13.1 percent and profit attributable to owners of the parent increased to 78.5 billion Japanese yen (0.7 billion dollars), up 12.7 percent year-on-year.

In terms of individual business segments, the company added, Uniqlo Japan, Uniqlo International, GU and Global Brands operations all reported rise in revenue and profit in the first quarter of fiscal 2018. The group continues to increase Uniqlo store numbers in each country where it operates, and open global flagship stores and large-format stores in major cities around the world to help consolidate the brand’s position as a global brand. Uniqlo Japan reported revenue rise of 7.6 percent and increase in operating profit of 18.6 percent year-on-year. Same-store sales, including online sales, expanded by 8.4 percent during the period.

Uniqlo Japan and Uniqlo International report sales growth

The company said November Uniqlo anniversary sale generated considerably higher-than-expected sales, resulting in the highest monthly sales figure for November on record. Online sales expanded 25.6 percent year-on-year in the first quarter to constitute 7 percent of overall sales.

Uniqlo International revenue and profit rose 31.4 percent and 54.7 percent respectively during the quarter, which the company added was due to continued steady expansion of global Uniqlo operations. Greater China, South Korea, and Southeast Asia & Oceania continued to drive segment growth by generating significant increases in revenue and profit. In addition, after suffering persistent losses, the company said, Uniqlo USA reported a profit in the first quarter of fiscal 2018 and Uniqlo Europe also reported a strong increase in profit on the back of solid performances from France and Russia. The first Uniqlo store was opened in Barcelona, Spain in September 2017.

The new GU business segment, Fast Retailing said, reported increases in both revenue and profit of 5.6 percent and 31.8 percent respectively, in the first quarter of fiscal 2018. However, though the September launch of trendy items proved favourable, a lack of sought-after thermal items dampened sales from October onwards, resulting in an overall decline in first-quarter same-store sales.

The Global Brands segment generated 13.8 percent and 10.4 percent increases in both revenue and profit with the Theory fashion label generating rise in revenue and profit. France-based Comptoir des Cotonniers reported a decline in profits, while France-based Princesse tam.tam and US-based J Brand reported losses of a similar magnitude to the previous year.

Picture:Uniqlo Japan website