Fast Retailing, which owns Japanese fashion company Uniqlo, published very disappointing third quarter profit results. Turnover grew nearly 9 % but its profit failed to meet analysts’ expectations.
Major blow in Japan
Fast Retailing’s turnover grew 8.9 % to 460.5 billion yen (3.5 billion euro), about 100 million euro better than analysts’ expectations. However, it was not all good news: net profit dropped 4.5 % to 22.8 billion yen (175 million euro), when analysts had forecast a 28.3 billion yen profit (220 million euro).
Uniqlo did suffer a blow in Japan, where its operational profit dropped 18 % compared to the year before. Japanese turnover did grow 3.5 % (including 2.7 % on a like-for-like basis) and online sales went up 17.3 % and now contributes 6.2 % to the chain’s total turnover.
Its international stores performed exceptionally well, with a 50.7 % profit growth and a 17.5 % turnover growth, mainly thanks to excellent sales in Southeast Asia, China and South Korea.