Asia boosts Fast Retailing sales and profit
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Uniqlo parent Fast Retailing has reported a record first quarter profit as international sales eclipsed its domestic revenue for the first time.
While Fast Retailing sales in Japan rose 8 per cent to 257 billion yen (US$2.31 billion) for the first quarter ended November, overseas sales surged 31 per cent to 258.2 billion yen.
“Southeast Asia & Oceania contributed to the rise in Uniqlo international revenue thanks to strong sales of summer items designed for year-round hot weather and buoyant demand for winter items from overseas travelers,” the company said in a statement.
In China, Uniqlo is closing in on its target of 1000 stores by 2021 by venturing into second- and third-tier cities, surpassing 600 at the end of last year. India is the next major market on its radar.
As for the home market, Fast Retailing CFO Takeshi Okazaki said while the economy was improving, “we cannot be optimistic that demand is returning to the apparel sector”.
“We aim to make Japan one country in a global business,” he said during an earnings briefing.
Operating profit for the quarter rose 28.6 per cent to US$1 billion in the quarter.
Questions & Answers
Q.What was the total revenue for Fast Retailing's international sales during the first quarter?
What was the total revenue for Fast Retailing's international sales during the first quarter?
International sales surged to 258.2 billion yen in the first quarter, surpassing domestic revenue for the first time. This represents a 31 per cent increase from the previous period.
Q.Which specific regions drove the increase in Uniqlo's international revenue?
Which specific regions drove the increase in Uniqlo's international revenue?
Southeast Asia and Oceania significantly contributed to the rise in Uniqlo's international revenue. This was due to strong sales of summer items and demand for winter items from travellers.
Q.How many Uniqlo stores did Fast Retailing have in China at the end of last year?
How many Uniqlo stores did Fast Retailing have in China at the end of last year?
At the end of last year, Uniqlo had surpassed 600 stores in China. The company is aiming to reach 1000 stores in China by 2021.
Q.What is the Fast Retailing CFO's view on the demand for apparel in their home market?
What is the Fast Retailing CFO's view on the demand for apparel in their home market?
CFO Takeshi Okazaki stated that while the Japanese economy is improving, he cannot be optimistic that demand is returning to the apparel sector. The company aims for Japan to be one country in a global business.
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