Fast Retailing (06288) announced its financial results for the nine months ended May 31, 2015. Its revenue was 2,616.708 billion yen, representing a year-on-year increase of 10.6%. Profit attributable to the owners of the parent company was 339.099 billion yen, an increase of 8.4% year-on-year. Basic earnings per share were 1,105.36 yen.
For the UNIQLO business division in Japan, the total revenue for the first three quarters of the current fiscal year was 801.4 billion yen (up 11.0% year-on-year), and the total operating profit was 150.6 billion yen (up 17.8% year-on-year), achieving significant growth in both revenue and operating profit. This business division also achieved growth in both revenue and operating profit in the third quarter alone. In addition to the consistently strong sales of year-round products, the net same-store sales increased by 7.5% year-on-year, driven by the hot sales of summer products during the Thanksgiving Day and Golden Week.
However, due to the weakening of the Japanese yen exchange rate affecting the forward exchange rate of reservations used for procurement, the cost rate has risen. In addition to the early launch of discount promotions and the inventory clearance mainly focusing on spring products, the discount rate rose, but the gross profit margin dropped by 2.1 percentage points. However, due to the increase in sales, the ratios of personnel expenses, rental expenses, and advertising and promotion expenses decreased, resulting in a year-on-year improvement of 1.2 percentage points in the ratio of sales, general and administrative expenses to revenue.
In terms of the overseas UNIQLO business division, the total revenue for the first three quarters was 1,457.1 billion yen (up 12.7% year-on-year), and the total operating profit was 240.6 billion yen (up 8.4% year-on-year), achieving a significant increase in revenue and an rise in operating profit. The support from customers all over the world for UNIQLO's main products has been increasing. Coupled with the company's continuous launch of high-quality stores in various regions that can convey the LifeWear brand value, the performance has been strong, but it has become a drag in the Greater China region. Fast Retailing Group's financial report shows that its revenue for the third quarter of fiscal year 2025 (March to May) was -5% and its operating profit was -3%. Q2 (December - February) revenue -3%, operating profit -9%. Q1 (September - November) : Revenue -3%, operating profit -9%.
In the GU(Superior) business division, the total revenue for the first three quarters was 256.2 billion yen (up 4.0% year-on-year), and the total operating profit was 26.3 billion yen (down 10.7% year-on-year), achieving revenue growth but a significant decline in profit. Among them, the third quarter alone also achieved an increase in revenue but a significant decline in profit. Although summer clothing such as the Barrel Leg tapered jeans series, Sweat Look T-shirts, and Dry T-shirts were favored, resulting in a slight increase in net same-store sales, emerging business items including coats and long T-shirts had sales performance lower than expected due to insufficient inventory and inadequate marketing promotion. Meanwhile, due to the weakness of the Japanese yen, the cost rate rose, causing the gross profit margin to decline. The ratio of sales, general and administrative expenses to revenue has risen. This is mainly due to the fact that while raising the salary level, the sales scale was not fully expanded, resulting in an increase in the ratio of personnel expenses to headquarters expenses.
In terms of the Global Brand business division, the total revenue for the first three quarters declined to 100.5 billion yen (a year-on-year decrease of 3.1%). The total operating profit was 2.8 billion yen (compared to a loss of 300 million yen in the same period of the previous year), marking a turnaround from loss to profit.
During the third quarter alone, the Theory business under this business division saw a decline in both revenue and profit. This is mainly due to the sales challenges faced by the Japanese business in department stores and the sluggish consumer willingness in the Asian region, which led to a decline in both revenue and profits. The PLST business achieved significant growth in both revenue and operating profit. Not only were the brand's new products highly favored, but also the products launched during the Thanksgiving festival were effective, leading to strong sales. Although the revenue of the French brand Comptoir des Cotonniers declined due to the reduction in the total number of stores, the strong sales of goods with adjusted prices to a more affordable range and the good performance of the stores that reopened after renovation drove the net same-store sales to increase and narrowed the loss margin.
Follow us for more info. wedding & event linen suppliers wholesale Readortex, official website and B2B online store