Fast Retailing reports rise in profit and revenue

The Fast Retailing Group generated gains in both revenue and profit in the nine months from September 2014 to May 2015. Revenue expanded 23.9 percent year on year and operating profit increased 35.5 percent. All three business segments reported increases in both revenue and profit, with Uniqlo International reporting strong gains on both parameters.

Profit before income taxes and profit attributable to owners of the parent both increased by a greater margin than operating profit. Strong same-store sales growth at Uniqlo Japan generated higher-than-expected gains in revenue and profit. Same-store sales continued strong, expanding 9.9 percent year on year on the back of buoyant demand for Spring/Summer ranges. The SG&A to revenue ratio improved by 0.9 point, helping to boost Uniqlo Japan operating profit by 11.2 percent year on year.

Uniqlo International gained both revenue and profit on consistent strength from Greater China and South Korea. Revenue and profit gains were in line with expectations in the third quarter from March to May 2015. Greater China (Mainland China, Hong Kong and Taiwan) and South Korea reported strong performance, with increases in revenue and profit outstripping estimates. Conversely, sales and operating profit at Uniqlo USA both fell short of target in the third quarter.

Global Brands achieved higher-than-expected gains in revenue and profit in the third quarter. GU outperformed expectations to report significant gains in both parameters on the back of double-digit growth in same-store sales and an improved operating profit margin. By contrast, Theory fell short of target to report a decline in profits. J Brand reported persistent losses, despite a rise in revenue.

For FY2015, the company expects group revenue to increase 19.3 percent year on year, operating profit by 53.4 percent and profit before income taxes by 56.1 percent.