Uniqlo's sales up 4.4% for nine months period

For the nine months period from September 2011 through

May 2012, Uniqlo Japan, which constitutes 67.7 per cent of consolidated net sales, generated gains in both sales and income. Sales totaled ¥503.2bn ($6.32bn/Rs 35,056 crores) (+4.4 per cent y/y) and operating income totaled ¥92.7bn ($1.16bn/ Rs 6,434 crores) (+1.8 per cent). Consolidated sales increased 14 per cent to ¥743.5bn ($9.33bn/Rs 51,752 crores), while operating income expanded 14.1 per cent to ¥119.3bn ($1.49bn/Rs 8,264 crores) and net income expanded an impressive 35.8 per cent to ¥72.5bn ($910.23 m/Rs 5,048 crores).

However, both sales and income contracted in the third quarter from March to May 2012, with sales totaling ¥138.6bn ($1.74bn/Rs 9,651 crores) (-1 per cent y/y) and operating income ¥20.4bln ($256.12m/Rs 1,420 crores) (-1.2 per cent). Same-store sales at Uniqlo Japan contracted 5.4 per cent year on year in the third quarter.

Uniqlo International generated gains in both sales and income in the March to May quarter with sales totaling ¥37.7bn ($473.32m/Rs 2,625 crores) (+61.1 per cent y/y) and operating income ¥2.1bn ($26.36mn/Rs 146 crores) (+19.8 per cent). The opening of the g.u. Ginza flagship store on March 30 boosted the brand’s profile and same-store sales have expanded by over 40 per cent since then. The g.u. sales target for the year through August 2012 of ¥50bn ($627.75m/Rs 4,036 crores) was surpassed on July 1, and now the company expects to achieve operating income of ¥5bn ($62.77m/Rs 348 crores) in fiscal 2012. For fiscal 2012, it also expects consolidated sales to increase by 13.3 per cent to ¥929.5bn ($11.66bn/64,677 crores), consolidated operating income to increase by 13 per cent to ¥131.5bn ($1.65bn/Rs 9,152 crores), and net income to expand 45.3 per cent to ¥79bn ($991.84m/Rs 5,501 crores). That would generate earnings per share of 775.65 yen ($9.73/Rs 539). In addition to the elevated interim dividend of 130 yen ($1.63/Rs 90) which has already been paid out, the company plans to offer a year-end dividend of 130 yen ($1.63/Rs 90), bringing the scheduled annual dividend to 260 yen ($3.26/Rs 180) per share.

In the nine months to May 2012, the company opened 24 new stores and closed 18 existing stores, bringing the total number of stores to 849 (including 21 franchise stores) at the end of May 2012.