DIpil Das
[caption id="attachment_83880" align="alignnone" width="720"]
Source: Company reports/Coresight Research[/caption]
1H19 Results
Fast Retailing reported 1H19 revenues of ¥1.3 trillion (up 6.8%), operating profit of ¥172.9 billion (up 1.4%) and profit attributable to owners of the parent of ¥114.0 billion (up 9.5%).
For subsidiary performance, first-half revenue and profit at Uniqlo Japan was ¥491.3 billion and ¥67.7 billion respectively, down by 0.5% and 23.7% . Same-store sales declined 0.9% due to especially warm weather in October and November 2018. The company reported online sales increased 30.3%, expanding online’s share of total sales from 7.5% in 1H18 to 9.9% in 1H19.
Uniqlo International reported revenue of ¥580.0 billion, up 14.3% , and operating profit of ¥88.4 billion, up 9.6%. Greater China (Mainland China, Hong Kong and Taiwan) reported strong growth in revenue of approximately 20%.
Revenue for the GU brand business increased 10.7%, to ¥117.1 billion. Operating profit climbed to ¥14.1 billion, with a 54.4% increase. The gross margin was essentially flat year over year, with management pointing to strong sales, strict control over discounting and lower cost of sales.
The company’s global brands saw revenues decline 0.9% , to ¥77.7 billion. Theory fashion operation reported an increase in profit thanks to strong sales in the US, while the France-based Comptoir des Cotonniers fashion brand lagged.
In February 2019, the company’s program was recognized by the Fair Labor Association for monitoring working environments across the supply chain. In the same month, the company stated its support for the footwear and apparel industry’s commitment to responsible recruitment. The company said it is also committed to science-based targets for lowering carbon emissions in line with the Paris Agreement within two years.
These are highlights of Fast Retailing’s 1H19 store plans and recent activities:
[caption id="attachment_83881" align="aligncenter" width="720"]
Source: Company reports[/caption]
Outlook
Due to the slower Uniqlo sales in Japan in 1H19, Fast Retailing revised its guidance for 2H19 operating profit to ¥260 billion, from its previous guidance of ¥270 billion.
Source: Company reports/Coresight Research[/caption]
1H19 Results
Fast Retailing reported 1H19 revenues of ¥1.3 trillion (up 6.8%), operating profit of ¥172.9 billion (up 1.4%) and profit attributable to owners of the parent of ¥114.0 billion (up 9.5%).
For subsidiary performance, first-half revenue and profit at Uniqlo Japan was ¥491.3 billion and ¥67.7 billion respectively, down by 0.5% and 23.7% . Same-store sales declined 0.9% due to especially warm weather in October and November 2018. The company reported online sales increased 30.3%, expanding online’s share of total sales from 7.5% in 1H18 to 9.9% in 1H19.
Uniqlo International reported revenue of ¥580.0 billion, up 14.3% , and operating profit of ¥88.4 billion, up 9.6%. Greater China (Mainland China, Hong Kong and Taiwan) reported strong growth in revenue of approximately 20%.
Revenue for the GU brand business increased 10.7%, to ¥117.1 billion. Operating profit climbed to ¥14.1 billion, with a 54.4% increase. The gross margin was essentially flat year over year, with management pointing to strong sales, strict control over discounting and lower cost of sales.
The company’s global brands saw revenues decline 0.9% , to ¥77.7 billion. Theory fashion operation reported an increase in profit thanks to strong sales in the US, while the France-based Comptoir des Cotonniers fashion brand lagged.
In February 2019, the company’s program was recognized by the Fair Labor Association for monitoring working environments across the supply chain. In the same month, the company stated its support for the footwear and apparel industry’s commitment to responsible recruitment. The company said it is also committed to science-based targets for lowering carbon emissions in line with the Paris Agreement within two years.
These are highlights of Fast Retailing’s 1H19 store plans and recent activities:
[caption id="attachment_83881" align="aligncenter" width="720"] Source: Company reports[/caption]
Outlook
Due to the slower Uniqlo sales in Japan in 1H19, Fast Retailing revised its guidance for 2H19 operating profit to ¥260 billion, from its previous guidance of ¥270 billion.