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Q1FY14 operating profit dips 30% at fashion retailer AOKI
11
Aug '14
Despite a 5.1% hike in year on year sales, operating profit declined 30.0% at Japan-based AOKI Holdings Inc, a retailer of fashion clothing in the first quarter of year ending March 31, 2015.

Operating profit fell 30.0% to 2,121 million yen, due in part to the falloff in the fashion business following the rush to make purchases prior to the April 2014 consumption tax hike, AOKI Holdings said.

In the quarter under review, sales increased 5.1% year-on-year to 43,870 million yen, while ordinary income decreased 35.4% to 2,135 million yen and net income dropped 12.7% to 1,565 million yen.

Net income per share though rose to 127.70 yen in first quarter of 2014 from 118.26 yen in first quarter of 2013. AOKI conducted a 2-for-1 common stock split on January 1, 2014.

So, AOKI said, net income per share and diluted net income per share have been calculated as if this stock split had taken place at the beginning of the previous fiscal year.

AOKI Holdings said, “Japanese economy continued to recover at a moderate pace despite the negative effect of the April 2014 consumption tax hike in first quarter of the current fiscal year”.

It noted that the economy is benefiting from strong personal consumption, a sound employment situation and other factors.

“However”, it added, “The operating environment in Japan’s fashion industry is uncertain because of changes in life styles, the shrinking market for business suits, concerns about higher costs and other factors.”

Despite, fall in net income; AOKI said it has not revised the earnings forecasts that it released on May 9, 2014.

AOKI continued to strengthen its lineup and marketing of functional suits including "Premium Wash Suits" and "Premium Stretch Suits” and other core products.

In response to the increasing diversity of fashions, AOKI started selling “Ultra Cross Suits” under the Café Soho brand, AOKI revealed.

Fibre2fashion News Desk - India


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