TOKYO (Reuters) – The Japanese driver of the worldwide Uniqlo apparel chain stated on Thursday that first-quarter operating revenue climbed 7.4%, a strong begin to its strategy to attain document earnings for a fourth-straight year.
Fast Retailing stated operating revenue was 157.6 billion yen ($ 996.84 million) in the 3 months with November.
That compares to 146.7 billion yen a year previously, yet it was a little listed below a LSEG agreement projection of 160 billion yen attracted from 6 experts.
Fast Retailing kept its full-year operating revenue projection of 530 billion yen, complying with document profits of 500.9 billion yen in 2015.
Known for economical, sturdy fleeces and cotton t-shirts, Fast Retailing has actually long been considered as a bellwether for customer investing in Japan and extra lately China, where it has greater than 900 Uniqlo shops on the landmass.
Domestic sales have actually obtained an increase from a rise in duty-free buying in the middle of a tourist boom in Japan sustained by a weak yen.
But sales development has actually cooled down in China, triggering the business to downsize shop openings and take on a scrap-and-build technique to reverse underperforming areas with revamped shops.
Improved revenue margins and worldwide brand name recognition aided drive in 2015’s document outcomes.
In its home market, it has likewise come to be a pace-setter for salaries in the solution sector.
Keen to maintain great employees, Fast Retailing stated on Wednesday it will certainly set up a hostile boost in worker pay in Japan – one that adheres to on from a walk in 2023 that aided shock the country’s lengthy moribund wage expectation.
Wages for full time head office and sales team will certainly increase by as high as 11% from March, while yearly incomes for brand-new staff members will certainly boost by around 10%, the business stated.
($ 1 = 158.1000 yen)
(Reporting by Rocky Swift; Editing by Kim Coghill, Edwina Gibbs and Jamie Freed)
