TOKYO — Fast Retailing stated Thursday that it has lowered its full-year gross sales and working revenue projections amid new authorities measures to forestall the unfold of COVID-19 in Japan and different markets. Meanwhile, it reported increased income and revenue for the primary 9 months of its monetary yr.
For the 9 months ended May 31, the Uniqlo guardian firm noticed web earnings surge by 67 % to 151.3 billion yen, or $1.38 billion. Operating revenue gained 72.1 % to whole 227.8 billion yen. The retailer posted income of 1.7 trillion yen, up 9.9 % from the identical interval a yr earlier.
The firm noticed elevated profitability throughout a number of of its enterprise segments and areas, which together with elevated gross sales helped to drive the robust revenue progress.
“The group achieved strong third-quarter (March to May 2021) rises in both revenue and profit, with performance recovering at all four business segments compared to the heavy impact of COVID-19 in the previous year,” Fast Retailing stated in a press release. “However, performance fell far short of our latest plan, primarily on lower-than-expected performances from Uniqlo Japan and GU.”
Based on this, the retailer lowered its steering for full-year gross sales and working revenue. It now expects working revenue to extend by 64 % to 245 billion yen, down from a earlier forecast of 255 billion yen.
The firm is predicting full-year income of two.15 trillion yen, a rise of seven % over the earlier fiscal yr. Its earlier steering put full-year income at 2.21 trillion yen.
Fast Retailing left unchanged its forecast for full-year web revenue. It is anticipating progress of 82.6 % over the earlier yr, totaling 165 billion yen.
Uniqlo Japan reported important will increase in each income and revenue over the nine-month interval. Sales grew by 12.7 % year-over-year to 675.1 billion yen, whereas working revenue elevated by 51 % to 119.5 billion yen.
“Building on solid results in the first half, with offerings that fulfilled customer demand for stay-at-home products, there was strong growth in the third quarter, coming off a low base from the year-ago period at the height of the pandemic,” the retailer stated. “Within the quarter, revenue increased on the back of strong sales of summer products, including Uniqlo U T-shirts, and Kando pants, as well as popular items such as loungewear and ultra-stretch active pants. Online sales continued to expand. The results were, however, short of company forecasts due to additional government restrictions to contain COVID-19, and product offerings lacking newsworthiness for customers.”
Uniqlo’s worldwide operations moved again into the black through the interval, pushed by massive gross sales and revenue will increase within the larger China area, in addition to improved profitability in North America, Europe and different areas. Uniqlo International reported a 9.8 % improve in nine-month income, totaling 739.6 billion yen. The phase’s working revenue grew by 88.7 % to 97.7 billion yen.
While Uniqlo noticed robust progress in each gross sales and revenue within the Greater China area, the outcomes nonetheless fell in need of its personal projections.
“In [the third] quarter, the mainland China market saw more subdued growth in demand as consumption patterns shifted to other segments, such as domestic travel. In addition, the comparable figures a year earlier had been extremely strong, boosted by 2020 May Labor Day sales as COVID-19 measures were removed,” Fast Retailing stated.
In different areas, Uniqlo South Korea and Uniqlo South Asia, South East Asia and Oceania returned to an working revenue. Uniqlo North America and Uniqlo Europe reported robust income beneficial properties and smaller working losses because the COVID-19 state of affairs improved through the third quarter. In a separate announcement Tuesday, Fast Retailing stated it plans to open a brand new, 20,500-square-foot Uniqlo and Theory retailer on London’s Regent Street in spring of 2022.
GU, Fast Retailing’s trend-focused, low-priced style model, noticed will increase in each gross sales and revenue for the 9 months, when put next with the identical interval a yr earlier. The phase’s income grew by 7.1 % to 200.8 billion yen, whereas working revenue gained 18.9 % to whole 24.3 billion yen. The firm stated enterprise efficiency held regular within the first half, however noticed appreciable will increase within the third quarter.
“Popular items such as chef’s pants, airy shirts and colored flared slacks contributed to the rise in GU revenue. However, the results were below expectation, due to the impact of additional measures to control the COVID-19 outbreak in Japan, its largest market,” Fast Retailing stated.
Fast Retailing’s international manufacturers phase reported each a decline in income and a bigger working loss for the primary 9 months of its fiscal yr. Revenue declined by 3.3 % to 80.5 billion yen, whereas the working loss expanded to eight.9 billion yen from 6 billion yen in the identical interval a yr earlier. The Theory operation, nonetheless, reported a big rise in income and a transfer again into the black through the third quarter. Comptoir des Cotonniers reported a big rise in income and a barely smaller working loss in the identical interval.