Fast Retailing revenue grows 7.5% to ¥2.2905 tn in FY2019

14 Oct '19
3 min read
Pic: Fast Retailing
Pic: Fast Retailing

Fast Retailing Co, Ltd achieved a record performance in the 12 months to August 2019. Its revenue grew 7.5 per cent year-on-year to ¥2.2905 trillion and operating profit rose 9.1 per cent to ¥257.6 billion. The group received large profit contributions from Uniqlo International and GU. Profit attributable to owners of parent rose 5 per cent to ¥162.5 billion.

In fiscal 2019, revenue from the Uniqlo International segment topped ¥1 trillion for the first time, and the segment reported a consistently high operating profit margin of 13.5 per cent. Overall, Uniqlo International revenue and profit both increased significantly over the fiscal year, with revenue totalling ¥1.0260 trillion yen (+14.5 per cent year-on-year) and operating profit increasing to ¥138.9 billion yen (+16.8 per cent year-on-year).

Breaking down the strong Uniqlo International performance into individual markets, Uniqlo Greater China reported strong gains in both revenue and profit, with revenue expanding by 14.3 per cent year-on-year to ¥502.5 billion and operating profit rising by 20.8 per cent year-on-year to ¥89 billion yen.

In terms of regional FY2019 performance, Uniqlo Greater China and Uniqlo Southeast Asia & Oceania reported further strong results characterised by double-digit rises in both revenue and profit. Both revenue and profit of Uniqlo Southeast Asia & Oceania expanded by approximately 20 per cent year-on-year in fiscal 2019 with revenue reaching the ¥170 billion. Uniqlo South Korea reported a decline in both revenue and profit. Uniqlo USA greatly reduced its operating loss in fiscal 2019. Uniqlo Europe achieved rising revenue and profit, with sales reaching ¥100 billion, and the Russian operation continuing to generate especially strong revenue and profit gains.

Revenue and profit gains propelled GU to its best performance ever. Its revenue increased to ¥238.7 billion (+12.7 per cent), operating profit ¥28.1 billion (+139.2 per cent). The oversized sweat wear, knitwear, and t-shirts of GU became hit products boasting sales of several million units.

The revenue of Global Brands declined 2.9 per cent to ¥149.9 billion. Operating profit moved back into the black to the tune of ¥3.6 billion, compared to a ¥4.1 billion loss in FY2018 following the reporting of a ¥9.9 billion impairment loss.

Uniqlo Japan reported rise in revenue and fall of profit in fiscal 2019, with revenue totalling ¥872.9 billion (+0.9 per cent year-on-year) and operating profit totalling ¥102.4 billion (-13.9 per cent year-on-year). While the warm winter effect knocked profit considerably lower in the first half, Uniqlo Japan operating profit then recovered to report a double-digit year-on-year gain in the second half.

In terms of new-store activity, Uniqlo International opened its first store in the Netherlands in Amsterdam in September 2018, followed by a first store in Denmark in Copenhagen in April 2019, a first store in Italy in Milan in September 2019, and a first store in India in Delhi in October 2019. All these new stores got off to a strong start.

For FY2020, Fast Retailing Group estimates for consolidated revenue of ¥2.4000 trillion (+4.8 per cent), consolidated operating profit: ¥275.0 billion (+6.7 per cent). All business segments are forecast to generate revenue and profit gains. At Uniqlo International, the Greater China and Southeast Asia & Oceania regions are expected to expand further. Uniqlo Japan is predicted to report a double-digit rise in full-year operating profit. GU and Global Brands are forecast to achieve higher revenue and profit in FY2020.

Fibre2Fashion News Desk (PC)

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