That’s a big milestone for its Uniqlo owner with the overseas ambitions of its celebrity chain having seen progress in addition to reverses within the last few years.
But reverses seem to be a thing of the past now with the firm saying it expects its earnings to hit a record amount in the year after more than doubling in its latest year to August.
Fast Retailing said that from the 12 months to August 31, net profit surged to ¥119 billion ($1.1 billion) although its sales rose only 4.2% to ¥1.86 trillion. Worldwide business has been strong, helped by the consequence of the yen, although the slow sales growth was down to slow turnover.
Operating profit for the latest period soared nearly 39 helped by the cost reductions of the firm, even though it reported a performance at its units that were international. As an example, the US unit was lossmaking even though its losses decreased by half an hour. Overall however, operating profits from Uniqlo stores nearly doubled as China, Southeast Asia and Oceania demonstrated strong. As prices rose Japanese operating earnings dropped over 6%.
The company also said that it found a significant improvement in the gross profit-to-net sales margin “following the shift towards substantially tighter discounting.”
“We will take initiative in virtually every process, including planning, production, sales and logistics,” its CEO Tadashi Yanai told media in a news conference to discuss the results.” If we become passive, then we’d fall into a decline.”
But he is not anticipating a decline any time soon and global expansion is the rationale. Foreign sales accounted for 38 percent of Fast Retailing’s earnings in the most recent year, up from only 22% in fiscal 2013. With the company calling earnings and sales and sales expected to be the majority at this time , its prospects look bright.
Sales may be a problem but action is being taken by the business. It needs to improve e-sales for Uniqlo from 30 and Yanai also hinted at external online partnerships to come.
All of it means a forecast of net profit reaching ¥120bn on earnings of ¥2.05trn in the new financial year. Not bad at all.