According to Bloomberg News, Fast Retailing announced on the 14th that its operating profit in the first quarter of fiscal 2021 (from September to November of last year) increased 23.3% from the same period of the previous year (91.6 billion yen) to about 1131 billion yen (about 1,191.9 billion yen). This exceeds the market estimate (consensus) of 101.5 billion yen.
Bloomberg Telecom explained that the quarterly operating profit was the second highest after 113.9 billion yen recorded two years ago. However, total sales amounted to 6197 billion yen, down 0.6% from last year (623.4 billion yen).
Fast Retailing explained the background of the increase in operating profit, saying, “We have gained great profits in Japan and Greater China (China, Hong Kong, Taiwan), and Jiyu (GU) also made results.” Jiyu is another fashion brand owned by Fast Retailing.
Takeshi Okazaki, Chief Financial Officer of Pastry Retailing (CFO), said it was helpful to strengthen marketing, such as collaboration with renowned designer Jill Sander. By brand, Uniqlo Japan had the largest operating profit at 60 billion yen. Compared to the same period last year (38.5 billion yen), it jumped 55.8%.
The operating profit of Uniqlo International, which encompasses Korea and China, is 41.4 billion yen, up 9.5% from a year ago (37.8 billion yen). Fast Retailing cited the fact that the deficit was resolved in South Korea, where it gained huge profits in Greater China and lost losses in fiscal 2020.
In particular, with regard to Uniqlo Korea, he explained, “Sales fell sharply, but it turned to a profit by closing branches that do not produce profits, strengthening expenditure controls, and improving sales and management expenses and gross margin.”
|
