Fast Retailing grows 7.5% in 2019 boosted by Uniqlo’s international business
The Japanese fashion giant has closed its fiscal year with a revenue of 21.2 billion dollars, an increase of 7.5% compared to the previous year.
Fast Retailing continues growing boosted by Uniqlo. The Japanese group, number three in the world by revenue, has ended its fiscal year 2019, closed in August, with a revenue of 21.2 billion dollars, an increase of 7.5% compared to the previous year. The company has pointed that this increase was boosted by Uniqlo’s international business.
According to the company, the operating profit reached 2.4 billion dollars, an increase of 9% year-on-year. However, its net profit rose only 2%, up to 1.6 billion dollars. The profit before income taxes of fiscal 2019 expanded to 2.3 billion dollars, an increase of 4% compared to the previous year.
“This impressive performance was due largely to strong results from Uniqlo International, and significant increases in both revenue and profit of our GU casual fashion brand”, stated the company. The consolidated gross profit margin dropped by 0.4 points year-on-year in fiscal 2019, and the selling, general and administrative expense ratio improved by 0.1 points.
The group expects to reach 22.3 billion dollars for its fiscal year 2020
The company stated, “the group’s medium-term vision is to become the world’s number one apparel retailer”. For this, Fast Retailing will focus its efforts on expanding Uniqlo’s international business as well as GU brand and their global ecommerce strategy.
In fiscal 2019, revenue from the Uniqlo International segment topped one trillion yens for the first time, reaching 1.3 billion dollars. Overall, Uniqlo international revenue and profit both increased over the fiscal year, with revenue totaling 9.5 billion dollars, an increase of 14.5% year-on-year.
In fiscal year 2020, Fast Retailing expects to achieve consolidated revenue of 22.3 billion dollars, an increase of 4.8%. The group forecast an overall of 3,745 stores by the end of August 2020: 817 stores (including franchise stores) at Uniqlo Japan, 1,520 stores at Uniqlo international, 445 stores at GU and 963 stores at Global Brands.
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