Fast Retailing Co. Ltd., Q2 2013 Earnings Call, Apr 11, 2013

Fast Retailing Co. Ltd. announced consolidated earnings results for the six months ended February 2013. Sales rose 17.0% year on year to ¥614.8 billion, operating income increased by 5.3% to ¥96.6 billion, ordinary income rose 15.2% to ¥107.7 billion and net income expanded by 13.8% to ¥65.4 billion. Group sales will top ¥1 trillion for the first time, and operating income will reach a new record high for the first time in three years. In fiscal 2013, the company estimates Group sales will reach ¥1,103.0 trillion (+18.8% y/y), operating income ¥147.5 billion (+16.6%), ordinary income ¥153.5 billion (+22.6%) and net income ¥91.5 billion (+27.7%). These forecasts translate into earnings per share of ¥898.09. The company expects an annual dividend of ¥280 per share for the year to end August 2013, split equally between an interim dividend of ¥140 and a year-end dividend of ¥140. The total number of Group stores is expected to reach 2,456 at the end of August 2013, comprising 854 UNIQLO Japan stores (including franchise stores), 441 UNIQLO International stores and 1,161 Global Brands stores (including 216 GU stores).

UNIQLO International announced earnings results for the six months ended February 2013. The company reported significant gains in sales and income in the first half, with sales rising 54.0% to ¥130.6 billion and operating income expanding by 39.8% to ¥16.0 billion. The company now predict sales will increase by 52.8% year on year to ¥234.0 billion and operating income by an impressive 81.8% to ¥20.0 billion. The company expects the total number of UNIQLO stores outside of Japan to rise rapidly to 441 stores by the end of August 2013, an increase of 149 stores from the end of August 2012.