Uniqlo operator logs record sales, operating profit in FY 2009+

TOKYO, Oct. 8 Kyodo -
Fast Retailing Co. said Thursday it logged record-high group sales and
operating profit for the business year through Aug. 31 on the back of booming
demand for low-cost hit products at its Uniqlo casual clothing chain amid tough
economic conditions.

The Uniqlo store operator reported a group operating profit of 108.64 billion
yen, up 24.2 percent from a year earlier, on sales of 685.04 billion yen, up
16.8 percent, due also in part to expansion of its overseas operations,
particularly in Asia. Its group net profit came to 49.8 billion yen, up 14.4
percent.
Fast Retailing has been a rare bright spot in Japan's sluggish retail industry,
rolling out a consistent flow of new products like its ''Heat Tech'' thermal
innerwear and ''Bra Top'' camisoles while boosting its brand image through
tie-ups with German luxury fashion designer Jil Sander and Walt Disney Co. of
the United States.
''We won recognition as a new brand originating from Japan that is different
from H&M, Zara or Gap,'' Fast Retailing President Tadashi Yanai said at a press
conference in Tokyo.
Its unit GOV Retailing Co. has also performed better this year as the launch of
990 yen jeans under the ''g.u.'' brand attracted price-conscious consumers.
Fast Retailing announced a bullish outlook for the current fiscal year ending
next August, projecting a group operating profit of 120 billion yen, up 10.5
percent, on sales of 798 billion yen, up 16.5 percent.
It plans to pay a full-year dividend of 160 yen per share for the just-ended
fiscal 2009, up 30 yen from a year earlier, and 200 yen dividend for the whole
of fiscal 2010.
The company aims to expand its Uniqlo stores in Asia from 76 at the end of
August to 132 by the same period next year, including the opening of an
overseas flagship store in Shanghai by next spring.
''We view the Asian markets as the biggest growth opportunity for Uniqlo,''
Yanai said. ''We will become the absolute No. 1 in each of the Asian
countries.''
The chief executive officer also said he plans to open over 100 stores in China
and Shanghai in 2011 and the same number of stores in South Korea in 2012 while
eyeing opportunities to enter markets in other Asian countries including
Thailand and Indonesia.
''We will acquire brands that have the potential to expand globally so we can
build our portfolio of global brands,'' Yanai said, without specifying which
company he plans to buy.
==Kyodo