Uniqlo op­er­a­tor profit soars to record

Oman Daily Observer - - FRONT PAGE -

TOKYO: Uniqlo’s par­ent com­pany said on Thurs­day that its an­nual net profit more than dou­bled from a year ago to a record thanks to strong sales and as a cheaper yen in­flated prof­its.

Fast Re­tail­ing’s net profit came in at 119 bil­lion yen ($1 bil­lion) in the fis­cal year through Au­gust, with rev­enue up 4.2 per cent at 1.86 tril­lion yen, it said.

Asia’s big­gest re­tailer — a ri­val of Zara, Gap and H&M — said sales were par­tic­u­larly strong at Uniqlo’s for­eign out­lets in­clud­ing in China and around Asia-Pa­cific.

Fast Re­tail­ing has re­fo­cused its strat­egy on lur­ing bar­gain-hunters after an ear­lier bid to raise prices hurt Uniqlo’s sales.

Op­er­at­ing profit for the lat­est pe­riod also surged, jump­ing nearly 39 per cent to 176 bil­lion yen thanks partly to cost-cut­ting and a smaller loss in its US busi­ness, the com­pany said.

“Sev­eral fac­tors con­trib­uted to this strong per­for­mance, in­clud­ing a con­sid­er­able im­prove­ment in the gross profit to net sales mar­gin fol­low­ing the shift to­wards much tighter dis­count­ing... the pos­i­tive ef­fects of cost-cut­ting ef­forts, and a halv­ing of the op­er­at­ing loss at Uniqlo USA,” it said in a state­ment.

For the year to Au­gust 2018, the com­pany ex­pects a 120 bil­lion yen net profit with op­er­at­ing profit at 200 bil­lion yen on sales of 2.05 tril­lion yen, up 10 per cent, as it eyes open­ing more stores out­side Ja­pan. — AFP

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