Fast Retailing Co. reported second-quarter results on Thursday. Here’s what you need to know.
NET PROFIT: The Uniqlo owner’s first-half net profit rose 39% from a year earlier to 146.84 billion yen ($1.17 billion) for the six months ended Feb. 28. Second-quarter net profit was Y53.25 billion, given net profit of Y93.59 billion in its first quarter, according to a Wall Street Journal calculation. That surpassed the estimate for Y44.36 billion from a poll of analysts by Quick.
REVENUE: First-half revenue increased 1.3% to Y1.219 trillion. Second-quarter revenue was Y591.59 billion, given revenue of Y627.39 billion in its first quarter. That narrowly beat the estimate of Y589.58 billion in the Quick poll.
WHAT WE WATCHED:
–SLOWER STORE OPENINGS: The company cut the estimate for new Uniqlo store openings for the fiscal year ending August to 185 from the previous projection of 200, due primarily to slower openings in South Korea and Europe. In March, the company suspended operations of 50 Uniqlo stores in Russia, including six stores it had opened earlier this fiscal year.
–NORTH AMERICA: Uniqlo’s first-half revenue for North America and Europe rose 48% from a year earlier to Y149.60 billion, leading the overall revenue gains. The company plans to significantly boost its presence in North America, bringing the number of Uniqlo stores to 200 in five years, compared with 43 stores in the U.S. and 14 stores in Canada currently.
–CHINA: Uniqlo’s first-half revenue from mainland China, Hong Kong and Taiwan declined 1.3% to Y306.77 billion, weighed by Covid-19 containment measures.
–DIVIDEND: The company raised its fiscal-year dividend forecast to Y560 per share from the previous view of Y520 per share, compared with Y480 per share it paid last fiscal year.
Write to Kosaku Narioka at email@example.com