Growing revenue and profit in SEA delivers for Uniqlo

UniqloUniqlo parent Fast Retailing Group has booked a 7.1 per cent per cent increase in its interim profits to ¥104 billion (AUD$1.24bn) after experiencing a spike in international sales for the six months ended February 2018.

Group revenue increased by 16.6 per cent to ¥1.186 trillion (AUD$2.2bn), driven by a 29.2 per cent increase in international sales, which carried a slower 8.5 per cent increase home market Japan.

Uniqlo experienced growth in most of its international markets, saying that its oceanic operations, which include Australia, delivered a strong result.

“Uniqlo Southeast Asia & Oceania continued to generate a strong performance, with solid demand for summer clothing and firm demand from travellers for winter clothing resulting in significantly higher first-half revenue and profit,” the Japan-based company said in a statement.

Fast Retailing’s global brand portfolio saw sales increase by 11.4 per cent to ¥78.4 billion (AUD$900m) but recorded an operating loss of ¥5.6 billion (AUD$67m) on impairments.

Its latest and fastest growing brand, GU, recorded an operating profit of ¥9.1 billion (AUD$110m).

The result has prompted Fast Retailing to revise its full-year guidance upwards, with the business now saying it expects a 13.3 per cent increase in consolidated revenue to ¥2.1 trillion (AUD$2.5bn) and operating profits of ¥225 billion (AUD$269m), up 27.5 per cent.

Fast Retailing said its international division was entering a new stage of growth, while GU was steaming ahead.

“Within the Uniqlo International segment, Greater China (Mainland China, Hong Kong and Taiwan), Southeast Asia and South Korea are entering a new stage of growth as the key drivers of operational growth for the Fast Retailing Group,” the company said.

“In terms of the GU operation, we plan to open more GU stores in Japan, while expanding the brand’s international presence, especially in Greater China.”

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