Fast Retailing posts 16.7 percent sales hike in Q1

The Fast Retailing Group reported considerable gains in both

sales and income in the first quarter of fiscal 2013 with all three business segments providing positive results. In the three months from September through November 2012, consolidated sales rose 16.7 percent year on year to 318.1 billion yen (36 billion dollars), operating income expanded 16.9 percent to 56.6 billion yen (6.4 billion dollars), ordinary income increased 23.4 percent to 59.7 billion yen (6.7 billion dollars) and net income expanded 23.5 percent to 38.4 billion yen (4.3 billion dollars).

Sales and income expanded at Uniqlo Japan with sales reaching 204.7 billion yen/23.1 billion dollars (7.7 percent year on year) and operating income 39.9 billion yen/4.5 billion dollars (6.2 percent). Uniqlo International segment reported gains in both sales and income of over 50 percent year on year in the first quarter with sales expanding to 64.5 billion yen/7.3 billion dollars (51.1 percent) and operating income 8.4 billion yen/0.9 billion dollars (53.2 percent).

Performance was especially strong in Asia, outstripping our first-quarter targets. Admittedly, we had issued relatively conservative forecasts in China and South Korea in light of the economic slowdown. However, given that company expects Uniqlo International will be able to boost profits further over the current period. Company has decided to revise its fiscal 2013 estimates for this segment. It now estimates Uniqlo International will achieve sales of 229.0 billion yen/25.9 billion dollars (49.5 percent year on year) and operating income of 20.0 billion yen/ 2.2 billion dollars (81.8 percent) in the year ending August 31, 2013. The total number of Uniqlo International stores is expected to expand to 439 stores by the end of August 2013.

In light of this strong performance in the first quarter, company has decided to revise our initial fiscal 2013 forecasts for Uniqlo International. It has revised the full-year sales estimate up by 13.0 billion yen/1.4 billion dollars to 229.0 billion/25.9 billion dollars (49.5 percent year on year) and the full-year operating income estimate by 4.0 billion yen/0.4 billion dollars to 20.0 billion/2.2 billion dollars (81.8 percent).