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.
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