FY2012 Highlights: Fast Retailing Generates Growth in Sales and Income
The Fast Retailing Group generated significant gains in both sales and income in fiscal 2012 or the 12 months from September 2011 through to the end of August 2012. Consolidated sales increased 13.2% year on year to ¥ 928.6bln, while operating income expanded 8.7% to ¥ 126.4bln and net income expanded an impressive 31.8% to ¥ 71.6bln.
UNIQLO Japan sales expanded but income contracted in fiscal 2012. Sales increased 3.3% to ¥ 620.0bln while operating income contracted 3.6% to ¥ 102.3bln. Although same-store sales and income turned up in the first half, both measures decreased year on year in the second half as sales of spring clothing proved sluggish and persistently cool weather delayed sales of summer items.
This segment achieved gains in both sales and income, with sales expanding 63.4% to ¥ 153.1bln and operating income expanding 22.9% to ¥ 10.9bln. Operations continued to expand in Asia thanks to our aggressive strategy for mass new store openings. The loss reported by UNIQLO USA expanded as sales at the three New York stores proved soft and leading investment was channeled into the flagship stores for brand building purposes. UNIQLO operations in China and South Korea generated gains in sales and income for fiscal 2012 as a whole, but the slowdown in economic conditions meant that both operations fell short of target in the fourth quarter from June to August 2012.
Theory recorded another record operating profit on the back of continued strong sales growth especially in Japan and a nascent profit contribution from PLST.
The g.u. operation achieved significant gains in both sales and income with sales expanding to ¥ 58.0bln and operating income to approximately ¥ 5.0bln. The g.u. label has enjoyed a dramatic leap in visibility thanks to the opening of the Ginza flagship store in March and effective TV ads.
Consolidated sales are estimated to top one trillion yen for the first time in fiscal 2013, expanding 13.7% to ¥ 1.056 trillion, while operating income is expected to rise 13.5% to ¥ 143.5bln and net income to rise 17.9% to ¥ 84.5bln. These forecasts would generate earnings per share of 829.62 yen. UNIQLO Japan is forecast to generate gains in sales and income in fiscal 2013, while UNIQLO International is expected to generate further significant growth in both sales and income as the store network in Asia is actively expanded and losses at the UNIQLO USA are actively reduced. The Global Brands segment is also forecast to generate gains in sales and income due mainly to continued strong contributions from the g.u. and Theory operations.
We forecast an annual dividend of 260 yen per share for the year to end August 2012, split equally between an interim dividend of 130 yen and a year-end dividend of 130 yen. We plan to increase the annual dividend to 280 yen per share for the year to end August 2013.
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Fast Retailing Co. Ltd.
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