Fast Retailing reports 23.3 percent rise in Q1 revenues

The Fast Retailing Group has reported increase in both revenue and profit during the first quarter of fiscal year 2015 spanning September 1 to November 30, 2014. Consolidated revenue totaled 479.5 billion Chinese Yuan (77.1 billion dollars), rising over 23.3 percent year-on-year with consolidated operating profit soaring over 39.9 percent year-on-year. Consolidated profit before income taxes increased 53.6 percent year-on-year and profit attributable to owners of the parent increased 63.9 percent year-on-year.

All group operations reported increase in revenue and profit, while Uniqlo International performed particularly strongly during the three-month period. The group’s medium-term vision is to become the world’s number one apparel manufacturer and retailer. Uniqlo Japan achieved higher than expected increase in revenue and profit during the three months. Revenue rose to 232.6 billion Chinese Yuan (37.4 billion dollars) an increase of over 11.6 percent year-on-year, and operating profit expanded by 21.3 percent year-on-year). Operating profit rose strongly due to a 7.5 percent increase in sales in existing stores, and higher gross profit margins. The gross profit to net sales margin improved by 2.4 percent in the first quarter.

Uniqlo Japan opened the global hotspot store, Uniqlo Kichijoji, on October 3, 2014 and the global flagship store, Uniqlo Osaka, on October 31, 2014. The number of directly-run Uniqlo Japan stores, excluding 28 franchise outlets, totaled 824 stores at the end of November 2014. While there is a net decrease of 14 stores year-on-year, 9 of these stores were converted from directly-run stores to new employee-franchise outlets.

Uniqlo International performed extremely well during the three months under review, reporting higher than expected increase in both revenue and profit. Revenue expanded considerably to 168 billion Chinese Yuan (27 billion dollars) with 47.3 percent year-on-year rise, and operating profit rose 57.2 percent year-on-year). With a net addition of 62 stores in the first quarter, the total number of Uniqlo International stores expanded to 695 stores at the end of November 2014. This represents an increase of 183 stores compared to the end of November 2013.

Within the Uniqlo International framework, Uniqlo Greater China (Mainland China, Hong Kong, and Taiwan) and Uniqlo South Korea reported higher than expected, strong increase in revenue and profit. Uniqlo Southeast Asia and Oceania generated rising revenue and profit in line with our expectations, while Uniqlo USA fell short of plan and reported an increase in revenue but a contraction in profit. Uniqlo Europe, including operations in the United Kingdom, France, Russia, and Germany, reported a slightly lower than expected increase in revenue and profit at the same level year-on-year.

Global Brands reported increase in revenue and profit in line with expectations. Revenue expanded representing rise of 18.6 percent year-on-year and operating profit rise of 30.4 percent. Low-priced GU fashion casual wear brand reported double-digit increase in both revenue and profit as expected, with strong performances from heavily-advertised skirts and knitwear items boosting sales in existing stores. Theory fashion brand reported slightly higher than expected increase in revenue and profit. France-based women’s fashion brand, Comptoir des Cotonniers, fell short of plan, reporting a slight contraction in profit. Meanwhile, France-based Princesse tam.tam brand, offering corsetry, homewear, swimwearand sportwear, and our US-based J Brand premium denim label performed to plan, generating stable year-on-year performances.