• FY profit grow 47.6% to JPY110bn
  • Sales up 21.6% to JPY1.68trn
  • Operating losses at Uniqlo US
Uniqlo International reported a “record” performance

Uniqlo International reported a “record” performance

Fast Retailing, the Japanese parent company of fast fashion retailer Uniqlo, has forecast profit growth below analyst expectations for its next fiscal year amid losses at is Uniqlo and J Brand US businesses last year.

In the 12 months to the end of August, profit attributable to owners of the parent totalled JPY110bn, a 47.6% year-on-year increase on earnings of JPY74.5bn in the prior year.

Consolidated revenue was up 21.6% to JPY1.68trn from JPY1.38tr a year earlier. The group's Uniqlo International unit proved to be the strongest among its three business segments, and the key driver of growth for the year.

Uniqlo International reported a “record” performance, with sales soaring 45.8% to JPY603.6bn, and operating profit up 31.6% to JPY43.3bn. Greater China (Mainland China, Hong Kong and Taiwan) and South Korea proved to be the key drivers of growth.

Greater China, in particular, saw sales climb 46.3% to JPY304.4bn. Sales, however, fell short of target, with operating losses expanding at Uniqlo USA, the company said. This was partly due to the rapid expansion of the store network, and due to the brand still being comparatively new to the US market and not yet widely recognised.

Global Brands saw revenue increase 17.6% to JPY295.3bn, while operating profit shifted from a loss of JPY4.1bn to a profit of JPY14.4bn. The segment, however, reported a JPY5.1bn impairment loss relating to recurring operating losses at J Brand.

For its next fiscal year, the company said it expects net income to rise 4.5% to JPY115bn, and sales to increase 13% to JPY1.9trn.