Uniqlo announces results for FY2014 First Half. First-Half Operating Income Rises 6.8%, All Business Segments Report Gains in Sales and Income.
Net sales: JP¥ 764.3 billion (+24.3% year on year), operating income: ¥ 103.2 billion (+6.8%), ordinary income: ¥ 107.5 billion (-0.2%), net income: ¥ 64.5 billion (-1.4%). All Group business segments reported rising sales and operating income over the six-month period, with UNIQLO International's performance by far the strongest.
Reported rising sales and income, thanks mainly to a 2.2% year-on-year increase in same-store sales. Gross margin improved but SG&A to net sales ratio increased. Improvement in same-store sales and gross margin predicted to continue through the second half, but also expect further rises in personnel, distribution and warehousing costs.
Significant rises in both sales and income in the first half. UNIQLO operations in Greater China (China, Hong Kong and Taiwan), South Korea, the United States and Europe all outstripped expectations, while UNIQLO's Southeast Asian operation performed favorably and to plan. UNIQLO International is expected to continue to produce strong growth in the second half, with continued strong performances from UNIQLO operations in Greater China, South Korea and Southeast Asia.
Losses at UNIQLO USA are expected to shrink, while profit at UNIQLO Europe is seen holding steady at the breakeven point, even when costs relating to the opening of the first German global flagship store are taken into account. Fiscal 2014 forecasts for sales and operating income have been revised up sharply. Total store numbers expected to expand by 186 to 632 stores at end August 2014.
Reported gains in sales and income in the first half. Sales and income gains at GU were slightly lower than expected in the first half owing to some discounting on excess winter stock, but GU sales are still forecast to exceed ¥ 100 billion for the business year as a whole.
-Fiscal 2014 Consolidated Estimates:
Group sales: ¥ 1.370 trillion (+19.9%), operating income: ¥ 145.5 billion (+9.5%), ordinary income: ¥ 149.5 billion (+0.3%), net income: ¥ 88.0bln (-2.6%), earnings per share: ¥ 863.50, annual dividend forecast: ¥ 300 per share (interim dividend: ¥ 150, year-end dividend: ¥ 150).