Linen Shirts in Europe, Round Mini Bags Propel Fast Retailing’s Latest Sales Surge
TOKYO — Fast Retailing said Thursday that it achieved record-high sales and profit for the first nine months of its fiscal year, following efforts by the group to diversify its revenue streams. In response to the strong performance, the Uniqlo parent company raised its outlook for the 12-month period ending Aug. 31.
For the nine months ended May 31, Fast Retailing saw a 0.3 percent increase in its net profit compared with the same period a year earlier, for a total of 238.5 billion yen, or $1.72 billion at current exchange rates.
More from WWD
Operating profit for the period grew by 21.9 percent year-over-year, totaling 330.5 billion yen.
The company posted nine-month sales of 2.14 trillion yen, representing yearly growth of 21.4 percent.
Among the group’s various business segments, Uniqlo’s international business did particularly well, reporting a sales increase of 30.5 percent to more than 1 trillion yen. The segment saw strong performance in markets including Asia, Oceania, Europe, North America and China.
“Strong marketing and demand for core products helped drive sales growth at Uniqlo USA, and sales of products developed specifically to meet the needs of U.S. customers also contributed significantly to revenue,” Fast Retailing said in a release. “In Europe, core products such as pants and linen shirts were well received by customers. In addition, round mini shoulder bags and bra top products generated considerable interest on social media, helping to expand the group’s customer base among women and younger generations.”
In its home market of Japan, Uniqlo saw an increase in sales but a lower profit, hindered by a weak yen. Revenue in the business segment rose by 10.7 percent to 709.7 billion yen.
GU, Fast Retailing’s “fashion casualwear” brand, posted nine-month growth in both sales and profit, with revenue increasing by 19.7 percent on the year, to total 227.9 billion yen.
“The strong performance was generated by a tightening of the brand’s product range, ensuring a sufficient supply of mass fashion trend items during the season, and strengthening marketing activities to create multiple popular products,” Fast Retailing said in a statement. “In addition, the company has been reforming its organization and advancing product development frameworks, which has laid the foundation for the creation of trendsetting, highly perfected products.”
The retailer’s record performance in the nine-month period led it to raise its full-year guidance. For the 12 months ending Aug. 31, it now expects its net profit to contract by 4.9 percent on the year to 260 billion yen.
The company is forecasting a 24.4 percent increase in 12-month operating profit, coming in at 370 billion yen.
Fast Retailing is predicting yearly sales growth of 18.6 percent, for a total of 2.73 trillion yen.
Best of WWD
