• Fast Retailing now expects full-year revenue to total JPY2.1trn.
  • The company has upped its guidance on the back of a higher-than-expected first-half performance.
  • H1 net income was up 7.1% to JPY104.1bn (US$966.3m), while net sales rose 16.6% to JPY1.2trn. 
Uniqlo operations in North America, Greater China and South Korea performed especially well

Uniqlo operations in North America, Greater China and South Korea performed especially well

Uniqlo owner Fast Retailing has posted an increase in both earnings and revenue for the first half of fiscal 2018, booking much higher-than-expected first-half revenue and profit gains.

For the six months to February 2018, the company reported a 7.1% increase in net profit to JPY104.1bn (US$966.3m) from JPY97.2m a year earlier, with net sales rising 16.6% to JPY1.2trn. 

Uniqlo Japan generated increases in both revenue and operating profit that "far exceeded" company forecasts, with revenue up 8.5% year-on-year to JPY493.6bn and operating profit reaching JPY88.7bn, up 29% from last year. Same-store sales expanded 8.4%, while firm control over discounting helped generate a 0.8 point improvement in gross profit margin year-on-year.

Uniqlo International, meanwhile, reported what the company called a "large profit gain" as all markets outperformed. Revenue climbed 29.2% to reach JPY507.4bn, while operating profit jumped 65.6% to JPY80.7bn.

Meanwhile, Uniqlo operations in North America, Greater China and South Korea performed especially well, while Uniqlo USA recorded a considerable reduction in operating losses.

Global Brands reported an 11.4% gain in revenue, expanding to JPY78.4n, but an operating loss of JPY5.6bn on impairment losses. GU, meanwhile, saw revenue rise 8.3% to JPY105.8bn and operating profit jump 23.3% to JPY9.1bn.

Looking ahead, Fast Retailing says its full-year estimates have been revised upwards to reflect the much higher-than-expected first-half performance. As a result, the company now expects net income to reach JPY130bn, while net sales are forecast to total JPY2.1trn.

Fast Retailing recently joined the new 2018 Accord on Fire and Building Safety in Bangladesh, which extends the work already carried out by the original five-year Accord, set up following the collapse of the Rana Plaza factory building in Dhaka in 2013 to oversee building and worker safety.

Who has signed the new Bangladesh '2018 Accord' – Update