Fast Retailing Raises Guidance on Nine-month Profit and Sales Growth
TOKYO — Fast Retailing said Thursday that its nine-month net profit grew by over 50 percent, driven by strong performance of its Uniqlo operations both in Japan and internationally.
In the nine months ended May 31, Fast Retailing’s net profit gained 57.1 percent year-over-year, totaling 237.8 billion yen, or $1.7 billion at current exchange rates. The company said the profit was a record high for the three- and nine-month period, both before and after taking into consideration the impact of a weaker yen.
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The company’s operating profit for the period increased by 19 percent on the year to 271 billion yen.
Fast Retailing posted nine-month net sales of 1.765 trillion yen, representing growth of 3.9 percent compared with the same period a year prior.
Among the company’s various business segments, Uniqlo International reported significant increases in both profit and revenue. Sales for the segment rose 13.7 percent year-over-year, totaling 841.2 billion yen.
“While the Japanese yen depreciation boosted performance in yen terms, the segment also reached record-highs in local currency terms,” Fast Retailing said in a statement. The results were driven by strong performance at Uniqlo operations in South Asia, Southeast Asia and Oceania, North America, and Europe (excluding Russia, where Uniqlo has paused its operations). The brand’s performance in the greater China region slumped due to the impact of restrictions to contain the COVID-19 outbreak.
In Japan, Uniqlo reported declines in its nine-month profits and sales, due mainly to a high comparative base in the previous year. However, performance improved in the third quarter, with sales increasing by 8.7 percent.
Fast Retailing said that GU, its fashion casualwear brand, saw manufacturing delays and logistical issues interrupt its product launches. This led to a drop in overall sales, which declined by 5.1 percent from a year prior to 190.5 billion yen.
The company’s global brands segment, which includes Theory, Princesse Tam Tam, Comptoir des Cotonniers, J Brand and PLST, saw a large increase in sales drive its return to profitability in the nine-month period. Net sales for the segment rose 11.8 percent year-over-year to 90 billion yen.
Based on its nine-month totals and strong performance in its fiscal third quarter, Fast Retailing raised its guidance for the year ending Aug. 31. It now expects its full-year net profit will jump by 47.2 percent to 250 billion yen, an increase of 60 billion yen over its previous forecast, released in April.
The company is predicting an increase of 16.5 percent in yearly operating profit, for a total of 290 billion yen. This is up from an earlier forecast of 270 billion yen.
Fast Retailing is now forecasting its full-year net sales will increase by 5.5 percent over the previous fiscal year, coming in at 2.25 trillion yen. Its previous forecast was 50 billion yen lower.
