JAPAN: Fast Retailing cuts FY outlook as earnings slide
- 9M net profit totals JPY84.8bn (US$837.1m)
- Sales reach JPY1.09tr
- Cuts full-year profit outlook
Japanese giant Fast Retailing Co has cut its full-year profit outlook as it recorded a fall in earnings in the first nine months of the year.
In the period to the end of May, net profit totalled JPY84.8bn (US$837.1m). This was a drop of 4.1% on earnings of JPY88.4m a year earlier.
Fast Retailing said the overall performance from its J Brand premium denim label fell short of target in the period, and its low-priced GU casual wear brand did not sell as well as expected.
Group sales, however, reached JPY1.09tr from revenues of JPY885.8bn in the year ago period. Uniqlo International, in particular, reported a particularly strong expansion in both net sales and income over the period. Sales were up 71.3% and operating income up 75.1%.
To account for a potential impairment loss on its J Brand jeans, however, the company lowered its full-year net profit target to JPY78bn from JPY88bn previously. Sales are expected to be up 19.9% to JPY1.37tr.
In the third quarter, net profit was down 11.7% to JPY20.2bn, while sales grew 19.4% to JPY323.6m. Operating income was up 20.9% to JPY33m.
The company's share price was down 1.94% to 32,855 yen at close of trading in Tokyo.
Help test our new apparel sourcing tool.
Hong Kong garment manufacturer Lever Style says it has so far failed to negotiate an agreement with striking workers at its factory in Shenzhen, which is a supplier to Fast Retailing, operator of the ...
Around 900 workers in the southern Chinese city of Shenzhen are understood to be taking part in a nine-day strike at a factory operated by Hong Kong-based garment manufacturer Lever Style Inc....
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Nike filed patent for "reinforced denim"
- Gap unveils five-year sustainable fibres pledge
- Adidas and Reebok top transparency index
- US textile industry applauds Trump executive order
- Pentland Brands reveals Berghaus factory list
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Myanmar - ISA Country Report