Fast Retailing’s fashion brand GU has reported a positive Q1 (September-November period) of FY 2021 both in revenues and profits.
The brand clocked 76.5 billion yen, noting 4.90 per cent Y-o-Y growth in Q1 ’21, while operating profit valued 13.6 billion yen with a significant surge of 9.90 per cent.
The same-stores sales of the brand increased due to rising demand of its sweat-style knitwear products for which brand ran strong advertising campaigns.
The other products which grew were the ones that attracted mass fashion trends or satisfied stay-at-home demand such as double-faced sweatshirts and chef’s pants.
However, GU’s gross profit margin declined by 0.6 point in Q1, but this was compared to a particularly strong performance in the previous year.
On the other hand, GU’s selling, general and administrative expense ratio improved by 1.2 points thanks to a lower personnel cost ratio achieved through more efficient store operations and a lower advertising and promotion cost ratio achieved through stronger cost controls.