Apparel Retailer Fast Marketing Group 2017 Net Profit Attributable To Parent Company Fell 56.3%

Asia's largest

Retailer

The group's net profit fell to 56.3% in the 2017 fiscal year ended in August 31, 2016, down from 110 billion 27 million yen in the same period last year to 48 billion 52 million yen.

For net profit slump, XXX said it was partly due to exchange losses of 11 billion yen, loss of 13 billion 800 million yen in denim brand J Brand business, and Uniqlo

In Japan, Japan and the United States, a total of 9 billion 300 million yen was lost in the market stores, and the loss of property, plant and equipment due to the closure of some stores.

In addition, the appreciation of the yen made foreign exchange reserves slide after the yen calculation, resulting in a 36 billion 900 million yen exchange loss on Financing revenues and costs.

However, for the outlook for the current fiscal year 2017, XXX group is optimistic that it expects net profit of 100 billion yen in the 2017 fiscal year ended August 31, 2017, an increase of 108.1% yuan over the same period.

In the past year and a half, the fast selling group has been affected by the wrong strategy of raising prices and the expansion of the US market has led to a sharp drop in profits.

The price adjustment strategy also led to a 0.2% decline in the first half of fiscal year of UNIQLO.

Japan's biggest brand, UNIQLO, was revived in the second half of the year, thanks to the re pricing strategy. Especially in July, 18.1% of the same store sales growth stimulated the Japanese market in UNIQLO, which still recorded a 2.5% increase in revenue throughout the year, from 780 billion 139 million yen to 799 billion 817 million yen in the same period last year. In the second half, UNIQLO Japanese market revenue increased by 6.3%.

In the 2016 fiscal year, UNIQLO's international market income recorded 655 billion 406 million yen, of which more than half, 332 billion 800 million yen contributed by the Greater China region, recorded an increase of 8.6% and 9.3% respectively.

Although UNIQLO Japan and the international market saw significant profit growth in the second half of the year, they failed to offset the first half of the year. The annual operating profit of UNIQLO Japan and the international market decreased by 12.6% and 13.7%, respectively, to 102 billion 462 million yen and 37 billion 438 million yen, up 117 billion 249 million yen and 43 billion 376 million yen in the same period last year.

In recent years, the Uniqlo China market, which relies heavily on UNIQLO, has recorded a profit of 36 billion 500 million yen in fiscal year 2016, which also has a 5.5% decline.

Fast retailing group said it was mainly affected by the rise in the same store sales revenue and the cost reduction plan in the two quarter of the UNIQLO big China market.

UNIQLO, Southeast Asia and Oceania and European markets recorded an increase in revenue and profit in the 2016 fiscal year. The US market continued to suffer losses only from another high hopes. The US market did not improve. Only a 7 billion 400 million yen loss was recorded in terms of impairment and asset scrapping.

At the group level, XXX Group recorded an annual income of 1 trillion and 786 billion 473 million yen, an increase of 6.2% over the same period last year, a sharp slowdown compared with the growth rate of 21.6% yen in fiscal year 2015. In the 2015 fiscal year, the Group recorded 1 trillion and 681 billion 781 million yen income. During the period, the group's operating profit was 127 billion 292 million yen, down by 22.9% compared to the previous year, and the profit before tax was 90 billion 237 million yen, plummeting 50.1% 50.1%; net profit plummeted to 53.9% yen.

In the 2016 fiscal year, the net profit and operating margin of XXX group's parent company were 7.1% and 7.3% respectively, down 880 basis points and 270 basis points respectively.

The company expects that the current operating profit in the 2017 fiscal year will resume, with an expected growth of 37.5% yen to 175 billion yen, but revenue growth will further slow to 3.6%, with an estimated value of 1 trillion and 850 billion yen.

Three of the five brands in the global brand sector including GU, J Brand, Comptoir des Cotonniers, Princesse tam.tam and J Brand continued to suffer losses.

GU, the second largest brand of the group, showed strong performance. In the 10th anniversary place, revenue and operating profit increased by 32.7% and 34.8%, respectively, to 187 billion 800 million yen and 22 billion 200 million yen. The GU brand increased by 31 to 350 stores all year round, including 10 stores outside Japan.

The Japanese name jee-you, the Chinese name is excellent, and the free will GU will be an important growth point for the Xun group. The group's founder, chairman and chief executive officer Tadashi Yanai willow well said at the end of last month that it plans to expand the group's cheap brand, and open 1000 stores overseas in the next 10 years, and the expansion of GU will still start in Asia, where Uniqlo UNIQLO has been successful and has become "Asia first".

Theory brand profit also increased in the 2016 fiscal year.

In the 2016 fiscal year, the global brand sector revenue recorded 328 billion 557 million yen, up 11.3% from 295 billion 316 million yen in the same period last year, with a profit of 9 billion 520 million yen, compared with a 14 billion 418 million yen decline of 34% over the previous year.

Despite the slowdown in revenue, Xunzi group is still adhering to the expansion strategy. It plans to expand its total number of stores to 3336 in fiscal year 2017, including 837 Japanese Uniqlo UNIQLO stores, 1104 overseas Uniqlo UNIQLO stores and 1395 global brand stores. Among them, Uniqlo international store will increase by 146, while Japanese Uniqlo UNIQLO stores will remain unchanged in the 2016 fiscal year.