Retail giant Fast Retailing, owner of the Uniqlo casual clothing chain, has reported revenue and profit gains for the third quarter, boosted by strong performances from the company’s Uniqlo International and GU segments.
For the period to 31 May, the company reported a 1% increase in profit to JPY44.6bn (US$411.6m), while consolidated revenues rose 7.3% to JPY555.1bn.
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Uniqlo International saw revenue expand 15.3% to JPY240.5bn, while operating profit rose 14.9% to JPY36.3bn. Operating profit surged 105.8% to JPY12.1bn at GU, while third-quarter revenue expanded 12.1% to JPY68.1bn.
Uniqlo Japan, however, reported falls in both revenue and profit that were roughly in line with expectations. Third-quarter revenue declined 0.5% to JPY209.7bn, and operating profit contracted 7.5% to JPY28.9bn. Fast Retailing noted the declines were mainly caused by a 0.1% year-on-year contraction in same-store sales after it decided to defer its Uniqlo sale to June.
Meanwhile, the Global Brands segment fell short of expectations by reporting declines in revenue and profit for the March-to-May quarter. Revenue fell 1.1% to JPY35.9bn, while operating profit declined 29% to JPY1.4bn. The Theory operation generated a flat year-on-year performance, PLST profit rose slightly, while losses expanded at Comptoir des Cotonniers and Princesse tam.tam.
The Fast Retailing Group recorded another record performance in the first nine months of the 2019 financial year, from September 2018 through May 2019. Consolidated revenue rose 7% to JPY1.82trn while operating profit was up 3.7% to JPY247.6bn. Profit attributable to owners of the parent totalled JPY158.6bn, up 7% from JPY148.3bn a year earlier.
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By GlobalDataLooking ahead, the company says it continues to expect to reach a new record full-year performance in the 2019 financial year for the third year in a row. Consolidated revenue is seen at JPY2.3trn (+8%), while profit is forecast at JPY165bn (+6.6%).
