- Prachi Singh |
The Fast Retailing Group reported increases in both revenue and profit in the first half of fiscal 2015, or the six months from September 2014 to February 2015. Revenue rose 24.2 percent year on year and operating profit expanded 40.2 percent. All three business segments reported increases in both revenue and profit, with Uniqlo International reporting strong gains.
Profit before income taxes and profit attributable to owners of the parent both increased by a greater margin than consolidated operating profit. This was due largely to the depreciation of the Japanese yen over the six months to February 28, 2015, which boosted the appraisal value of foreign-currency denominated assets. Same-store sales expanded 8.4 percent year on year, owing to strong sales of core winter ranges such as Heattech, Ultra Light Down, sweatshirts and sweatpants. Strong demand resulted in less discounts leading to rise in operating profit.
Uniqlo International reported higher than expected increases in revenue and profit, in both yen and local currency terms, with Greater China including Mainland China, Hong Kong, and Taiwan and South Korea reporting large gains. The Global Brand segment reported rising revenue and profit in the first half. The company’s low-priced GU casualwear brand performed well, generating higher than expected increases in both revenue and profit. Strong sales of heavily advertised skirts, knitwear items and winter outerwear, and favorable sales of items in the company’s ‘GU Basic’ category helped boost first-half sales at existing GU stores.