UNIQLO PARENT FAST RETAILING REPORTS STEEP DECLINE IN OPERATING PROFIT

The Fast Retailing Group, the parent of such brands as Uniqlo, Theory and J Brand, has reported a rise in revenue but a fall in profit in the first quarter of fiscal 2016, covering the three months from September to November 2015. Consolidated revenue expanded 8.5 percent year on year, while operating profit declined 16.9 percent. It also lowered its revenue and profit expectations for 2016.

As with many companies, Fast Retailing cited unseasonably warm weather around the world for its downturn, especially for its Uniqlo division. However, the company stated it will implement “a new strategy focusing on new store openings in major U.S. cities and expanding e-commerce” in 2016. Last year, the company opened stores in Boston and Chicago.

Although its Global Brands segment exceeded expectations in the first quarter, reporting a 17.4 percent year-on-year gain in revenue and a 29.7% year-on-year gain in operating profit, Theory reported a slight decline in profit, while J Brand reporting an expanded operating loss.