Home / Knowledge / News / Apparel/Garments / Fast Retailing sales fall; UNIQLO Japan to expand in H2
Fast Retailing sales fall; UNIQLO Japan to expand in H2
Apr '11
Fast Retailing Co., Ltd. experienced a dip in both sales and operating income in the six months to February 2011, the first half of fiscal 2011, caused primarily by sluggish performance at its mainstay UNIQLO Japan operation.

Same-store sales at UNIQLO Japan contracted 9.9% year on year and operating income declined in the six months through February 2011 with results overshadowed by comparisons with the extremely strong sales of the previous year and impacted by unseasonably warm weather in December 2010 that dampened sales of fall and winter products.

UNIQLO International produced an impressive 33.9% increase in operating income with new stores opening and same-store sales expanding rapidly in Asia, in particular in the markets of China, Hong Kong and South Korea. Our Global Brands segment also generated a 10.3% rise in operating income thanks to a strong performance by Theory operations in both Japan and the United States.

Sales and Operating Income Expected to Rebound in the Second Half of Fiscal 2011

We estimate that both sales and operating income at UNIQLO Japan will expand in the second half of the fiscal year, from March through August 2011. However, due to the negative impact on sales from stores unable to operate following the devastating March 11 earthquake and tsunami that hit northeastern Japan as well as the impact of the reduction in the number of new store openings in the first half, we have revised down our latest UNIQLO Japan sales estimate in the second half by ¥ 8.0bln.

However, our most recent estimate for same-store sales at UNIQLO Japan remains unchanged at a 3.0% increase year on year. Following the March 11 earthquake, same-store sales fell further below the previous year's level in March, contracting 10.5% year on year.

However, subsequently sales have been gradually recovering and we expect same-store sales to increase from April. We estimate our gross profit margin will dip 1.8 points year on year in the six months through August 2011 on the back of rising cost of sales, but also expect increased revenue and cost-cutting measures to nudge operating income higher in the second half. In addition, UNIQLO International and Global Brands are expected to generate continued increases in income through the second half of fiscal 2011.

Interim Dividend for Fiscal 2011 increased 10 Yen

Given the larger-than-forecast rise in net income in the six months through February 2011, we have decided to increase our interim dividend by 10 yen from 85 yen to 95 yen per share. Combined with our estimated 85-yen year-end dividend, this would generate a higher full-year dividend of 180 yen per share.


UNIQLO Japan, which currently constitutes 74.8% of consolidated sales, experienced a drop in both sales and operating income in the first half of fiscal 2011 in the six months through February 2011. Net sales contracted 6.8% to ¥ 342.1bln and operating income fell 23.9% year on year to ¥ 70.3bln. However, the operating income did exceed our most recent estimate by more than ¥ 4.0bln.

Must ReadView All

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

RBI Governor Urjit Patel and other officials addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

RBI withdraws the incremental CRR from Dec 10

The Reserve Bank of India (RBI) has decided to withdraw the...

Textiles | On 7th Dec 2016

‘Price-competitiveness is crucial for China yarn market’

Kikani Exports, India based yarn supplier with 12 years of experience ...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search