- Angela Gonzalez-Rodriguez |
Japanese fashion retailer Fast Retailing Group saw its profit soar 30.5 per cent in the six months to the end of February. Over the period sales went up by 16.6 percent.
The parent group of Uniqlo and GU brands said consolidated revenue totalled 11.05 billion dollars while operating profit reached 1.587 billion dollars. In the six months to February 28, same-store sales, including online sales, went up by 8.4 percent year-on-year.
Online sales also increased steadily (+31.6 percent) generating 7.5 percent of total revenue.
Uniqlo’s international sales drive growth at Fast Retailing
Uniqlo’s international business drove the growth, with both Uniqlo Japan and the fast-growing GU brand performing strongly as well. It’s worth recalling that Japanese multi-brand group has its eyes set on becoming the world’s largest apparel retailer. To achieve that, the company is focusing on Uniqlo and GU.
As a matter of fact, Fast Retailing considers opening global flagships and large-format stores in major cities around the world as a key strategy “to help consolidate Uniqlo’s position as a key global brand”.
“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 an earnings statement.
Operating losses at Uniqlo USA contracted, putting that business on track to turn a profit going forward.
More GU stores to keep coming in Japan and Greater China
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,” explained the company.
Uniqlo’s domestic Japanese operation also achieved an increase in sales and profit in the first half year. Revenue improved by 8.5 percent while operating profit rose a staggering 29 percent.
Uniqlo International’s profitability improved in Greater China and South Korea on higher sales, driven by strong sales of winter ranges such as HeatTech and down. Uniqlo Southeast Asia and 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.
Photo:Uniqlo, S/S18 collection, Uniqlo Web