JAPAN: Fast Retailing expects sales to break JPY1trn barrier in 2013
The company says it expects sales over the year ending August 2013 to expand 13.7% to JPY1.056trn, with operating income expected to increase 13.5% to JPY143.5bn and net income to increase 17.9% to JPY84.5bn.
It expects Uniqlo Japan to generates sales and income growth over the year, while its international operations are expected to generate significant growth as the store network in Asia is actively expanded and losses in the US are reduced. It also expects the g.u. And Theory brands to continue to offer strong contributions.
The forecast came as the company recorded a 31.8% increase in net income over the year ended 1 August to reach JPY71.6bn. Over the year, sales increased 13.2% to reach JPY928.6bn.
Uniqlo Japan saw operating income decline 3.6% to JPY102.bn, as net sales rose 3.3% to JPY620bn.
In Japan, the company said same-store sales fell 4.3% in the second half after spring garment sales suffered during the inter-season period from March to May from an overly narrow inventory and persistently cool weather through mid-July. Rising raw material costs and factory processing fees hit the division's gross margin and a sell-off of summer inventory dampened profitability in the second half, the group admitted.
The group's international Uniqlo operations saw operating income rise 22.9% to JPY10.9bn on a 63.4% sales increase to JPY153.1bn.
The company said the loss reported by its US operations expanded as sales at the three New York stores proved soft and leading investment was channelled into the flagship stores for brand building purposes.
Meanwhile, its branded division saw operating income jump 65.4% to JPY14.5bn as sales rose 23.3% to JPY153bn.
Generally, 2013 is seen as being another challenging year for the apparel industry - although there is cautious optimism for an improved business environment. Issues such as compliance, sustainability...
Opportunities the apparel industry should focus on this year include developing strategic relationships to improve flexibility across the supply chain; a focus on adding value through design, innovati...
What should apparel firms have learnt from the upheaval of the past couple of years - and what should they be doing now if they want to remain competitive into the future? They need to remain nimble e...
Apparel sales in the Asia Pacific region are continuing on a golden growth trajectory despite a slowdown in China. Domestic brands are continuing to hold their own, and foreign brands intent on making...
Fast Retailing has attributed sales gains in its Japanese Uniqlo stores during March to consistently warm weather. ...
Casual clothing retailer Uniqlo has booked a 9.6% increase in Japanese same-store sales in February, driven by strong sales of winter apparel....
Specialty clothing retailer Gap Inc has remained coy on reports Japanese retail giant Fast Retailing has expressed interest in buying the company....
- When will Gap get back on track?
- Software solutions enhance speed and visibility
- Portugal footwear makers underpin industry growth
- Supply chain weighs on Kering's green footprint
- What Marks & Spencer's numbers mean for clothing
- China to reduce apparel import taxes
- Q1 apparel results in brief: DSW, Chico's
- Indonesian textile sector sees 6,000 lay-offs
- New black dye meets sustainability standards
- Vietnam garment staff return after faintings