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Fast Retailing’s Full Year Profits Rose 5 Percent Despite J Brand Struggles

Fast Retailing Co. Ltd. said Uniqlo International and GU drove record results for the year ended Aug. 31.

In a Nutshell: Large profit contributions from Uniqlo International and GU helped Fast Retailing post a 7.5 percent gain in revenue and a 5 percent gain in net profits.

Net Sales: Revenues rose 7.5 percent to 2.291 trillion yen ($21.22 billion).

By business segment, Uniqlo Japan revenue rose 0.9 percent to 872.9 billion yen ($8.08 billion), as full-year same-store sales rose 0.1 percent. The company said comps fell in the first half of the year, but rose 3.5 percent in the second half, which was boosted by strong summer sales.

Uniqlo International saw revenue cross 1 trillion yen for the first time, up 14.5 percent to 1.026 trillion yen ($9.50 billion). Uniqlo Greater China and Uniqlo Southeast Asia and Oceania posted double-digit increases in both revenue and profit, while Uniqlo South Korea posted a decline in both revenue and profit. Uniqlo USA “greatly reduced its operating loss,” said Fast Retailing. Uniqlo Europe saw a rise in revenue and profit, helped by a strong performance in Russia.

GU posted a 12.7 percent lift in revenue to 238.7 billion yen ($2.21 billion). “Oversized sweatwear, knitwear and T-shirts became hit products, boasting sales of several million units,” Fast Retailing said.

As for global brands, the group saw revenue decline 2.9 percent to 149.9 billion yen ($1.39 billion). Theory posted rising revenue and profit, while J Brand–along with Comptoir des Contonniers and Princesse tam.tam–reported continued losses.

Earnings: Fast Retailing said net profits were up 5 percent to 162.5 billion yen ($1.51 billion), while operating profit rose 9.1 percent to 257.6 billion yen ($2.39 billion).

Fast Retailing said it expects consolidated revenue for fiscal year 2020 to increase 4.8 percent to 2.400 trillion yen ($22.23 billion), with net profits up 7.6 percent to 175.0 billion yen ($1.62 billion).

The company said it expects all business segments to generate revenue and profit gains.

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