Japanese clothing group Fast Retailing saw its revenue rise but income fall over the six months to February 2007, due in part to a fall in gross profit margins and wider losses at some consolidated subsidiaries.

Loss-making subsidiaries included Onezone Corporation and GU Co.

Overall net sales rose 19.1% year-on-year to JPY284.1bn (US$2.38bn), while operating income fell 5.2% to JPY43.1bln and net income fell 14.6% to JPY22.6bln.

As regards the overall net sales figure, revenue increased at both mainstay domestic Uniqlo operation and newly consolidated subsidiaries Cabin Co and Petit Vehicule.

"We are continuing to expand our large store network at a favourable pace with 11 more new stores coming on line in the second half," the company said.

"Following the fall in our gross margin over the first half, we are planning to strengthen control over the gross profit rate in the second half and generate a year-on-year improvement." 

For the full year to August 2007, Fast Retailing is forecasting net sales of JPY538.2bn, up 19.9% year on year, and operating income of JPY73.4bn, up 4.4% year on year.