Fast Retailing reports sales and profit growth

The Fast Retailing Group’s revenue increased and profit rose in the first nine months of fiscal 2022, with consolidated revenue rising to 1.7651 trillion yen, 3.9 percent year-on-year and operating profit rising to 271 billion yen, 19 percent.

The company’s pre-tax profit rose to 349.2 billion yen, up 42.2 percent and profit attributable to owners of the parent rose to 237.8 billion yen, up 57.1 percent.

Uniqlo Japan posts drop in sales and profit

However, Uniqlo Japan reported declines in both revenue and profit, with revenue contracting to 640.9 billion yen, down 5.1 percent and operating profit dipping to 119 billion yen, down 0.4 percent. In the third quarter from March to May 2022, revenue increased by 8.7 percent and operating profit expanded by 76.2 percent.

The company said that as the spread of Covid-19 is being brought under control, same store sales expanded by 7.8 percent in the third quarter due to strong sales of Kando jackets and Kando pants and blouses as well a strong performance during the Golden Week sales and the Uniqlo anniversary sale.

The third-quarter gross profit margin improved 3.9 points due to a lower discounting rate linked to the company’s efforts to restrict discount sales.

Uniqlo International on the other hand reported increases in both revenue and profit, with revenue rising to 841.2 billion yen, up 13.7 percent and operating profit increasing to 132.7 billion yen, up 35.8 percent.

While the depreciation of the Japanese yen boosted sales and operating profit in yen terms, the segment also achieved a record performance in local currency terms driven by revenue and profit increases from the South Asia, Southeast Asia & Oceania region and the North America and Europe (excluding Russia) regions.

The company added that the Greater China region reported large declines in revenue and profit as the region was adversely impacted by restrictions on general movement put in place to address the spread of Covid-19 infections.

GU segment reports drop in revenue and profit

The group’s GU segment reported a decline in revenue and a large contraction in profit in the nine months, with revenue falling to 190.5 billion yen, down 5.1 percent and operating profit shrinking to 17.8 billion yen, down 26.7 percent.

In the third quarter, GU revenue declined slightly, while operating profit held steady year-on-year. The third-quarter GU gross profit margin improved by 1.5 points year-on-year.

Revenue at Global Brands rose to 90 billion yen, up 11.8 percent and operating profit totalled 0.7 billion yen compared to an operating loss of 8.9 billion yen in fiscal 2021.

In the third quarter, the Theory operation reported higher revenue but lower profit. This was due primarily to a decline in revenue and profit from Theory Asia centred on Mainland China in the wake of the Shanghai lockdown.

As for PLST operation, while sales of blouses, pants, and dresses proved strong, the company was not able to sufficiently expand sales as delays in production and distribution resulted in product shortages. As a result PLST sales hovered at previous-year levels and operating profit increased only marginally.

At the France-based Comptoir des Cotonniers operation, revenue increased and the operating loss shrank as the group managed to greatly improve cost efficiencies by determinedly closing unprofitable stores and pursuing other structural reforms.