Fast Retailing, Japan-based apparel retail holding company and owners of fashion brand Uniqlo, has unveiled its financial results for the first quarter of fiscal year 2017. The company generated biggest operating profit worth Yen 88.59 billion in two years, up 16.7 per cent compared to Yen 75.9 billion in the corresponding period previous year.
In the reporting period, the company’s revenue noted a surge of 1.6 per cent to Yen 528.8 billion. Gross profit stood at Yen 270.6 billion, up by 1.7 per cent from last year’s Yen 266.2 billion. Whereas Uniqlo Japan generated an operating profit of 1.8 per cent to Yen 45.6 billion. Revenue and gross profit totaled to Yen 238.8 billion and Yen 122 billion, respectively.
A persistent economic malaise and a lack of wage growth contributed to falling at consumer confidence in Japan, prompting retailers to offer better products for less and cut expenses. The Group also opted to expand overseas, including China, Southeast Asia and the United States, to ride out the gloom. With Japan’s consumer prices and household spending both slumping in November for the ninth straight month, the retailer said it did not plan to raise prices, highlighting the challenges faced by the country as it strives to banish deflation.
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Also, Uniqlo’s international operating profit jumped 44.6 per cent to Yen 30.1 billion. However, revenue slightly fell to Yen 196.5 billion from Yen 196.9 billion in prior year period. The retailer also posted revenue and operating profit for the Global Brands. Operating profit for the Global Brands dived 22.7 per cent to Yen 9.5 billion. Revenue in this period totalled Yen 92.7 billion with 1.1 per cent increase.
