Fast Retailing forecasts increased sales & income in fiscal 2012

15 Oct '11

2 min read

The Fast Retailing Group reported an increase in sales but a fall in profit in fiscal 2011, the business year through August 2011, with consolidated sales rising 0.7% year on year to ¥ 820.3bln while operating income contracted 12.1% to ¥ 116.3bln and net income fell 11.9% to ¥ 54.3bln. The main factor underlying this result was a decline in operating income at UNIQLO Japan.

Same-store sales at UNIQLO Japan did improve in the second half, the six months from March through August 2011, and operating income recovered to generate positive year-on-year growth in the second half. However, this improvement was not sufficient to offset the weak performance in the first half from September 2010 to February 2011. On the other hand, UNIQLO International performed extremely well in fiscal 2011, generating considerable gains in both sales and income, and our Global Brands segment also reported an increase in profits thanks mainly to the strong performance of our Theory brand operation.

Fast Retailing is deeply committed to expanding UNIQLO operations, particularly outside Japan, and is currently working to strengthen its operational base by opening even more stores in the Asian region, including China and Hong Kong, South Korea, Singapore, Taiwan, Malaysia, Thailand, and the Philippines, and also by opening global flagship stores in New York and other major cities around the world. In fiscal 2012, the year through August 2012, Fast Retailing is planning to open an additional 107 new UNIQLO stores outside of Japan, and also to open four global flagship stores on New York's Fifth Avenue, in Taipei, Seoul and Tokyo's Ginza shopping district.

Fast Retailing predicts both sales and income will increase in fiscal 2012, with UNIQLO International continuing to generate strong gains in both sales and income, and profits improving at UNIQLO Japan. In fiscal 2012, consolidated sales are estimated to rise 17.6% year on year to ¥ 965.0bln, operating income is seen increasing 16.4% to ¥ 135.5bln and net income is expected to expand 30.6% to ¥ 71.0bln. This translates into earnings per share of 697.34 yen and enables us to schedule an annual dividend of 230 yen, including an interim dividend of 115 yen.

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The Fast Retailing Group

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