TOKYO — Fast Retailing Co. Ltd. posted another year of double-digit growth as its Uniqlo brand continued to win over price-sensitive consumers.
Net profit for the year ended Aug. 31 rose 14 percent to 49.8 billion yen, or $517.4 million at average exchange rates for the period, the company said Thursday. That figure is lower than the 52 billion yen, or $540.3 million, target it set in July.
Sales jumped 17 percent to 685.04 billion yen, or $7.12 billion, slightly higher than the July forecast for sales of 682 billion yen, or $7.1 billion.
Operating profit for the year rose 24 percent to 108.64 billion yen, or $1.13 billion, as the company predicted this summer.
The company also said it is expecting to post double-digit growth for the current fiscal year ending Aug. 31, 2010.
Fast Retailing said net profit should grow 25 percent to 62 billion yen, or $699 million at current exchange rates. Operating profit is seen rising 11 percent to 120 billion yen, or $1.35 billion, while sales are forecast to increase 17 percent to 798 billion yen, or $9 billion.
Last month, the Japanese company, which owns the Uniqlo chain, outlined ambitious targets. The company said it is aiming to grow its annual sales more than seven times to 5 trillion yen, or $56.4 billion, by 2020. Much of that growth will come through Uniqlo’s international expansion in Asia, the U.S. and Europe.
Last week, Uniqlo launched its much anticipated +J collection designed by Jil Sander, attracting hordes of shoppers in Paris, Tokyo, London and New York.
Fast Retailing chairman and chief executive officer Tadashi Yanai said at a press conference on Thursday that Uniqlo plans to go “from number one in Asia to number one in the world” by opening an average of 100 stores a year across China and Hong Kong, plus an additional 100 stores in South Korea by the year 2012. Other expansion is slated for Thailand, Indonesia, Malaysia, the Philippines, India, Vietnam and Australia.
Uniqlo opened a global flagship in Paris’ Opera district on Oct. 1 and is still absorbing operating costs linked to the opening. “Paris is the center of global fashion, and the Paris store will showcase Uniqlo to the world,” Yanai said. The next steps in Uniqlo’s global expansion include its first store in Moscow and a global flagship in Shanghai, both set to open in the spring.
Domestic and international growth was driven by the strength of Uniqlo’s women’s line, as well as core products such as the Heattech and Bra Top series and washable knits.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)