OREANDA-NEWS. The Fast Retailing Group generated significant gains in both sales and income in the first quarter of fiscal 2014. Consolidated net sales increased by 22.3% year on year to JPN 389.0bln, operating income expanded by 13.1% to JPN 64.0bln, ordinary income rose 14.9% to JPN 68.6bln and net income expanded by 8.8% to JPN 41.8bln.

Sales and income both rose in Japan in the first quarter, with sales reaching JPN 208.4bln (+1.8% year on year) and operating income expanding to JPN 42.4bln (+6.2%). Same-store sales contracted 0.3% over the three months to November 2013, but UNIQLO Japan was still able to report a gain in net sales as the total number of stores increased by five stores over the previous year, and our "scrap and build" policy of replacing smaller stores with larger ones continued to boost the average size of our sales floor. UNIQLO Japan also reported a profit gain in the first quarter. The operation improved its gross profit margin, by maintaining firm control over the range of discounted items and the magnitude of the discounts. Business expenses were also kept in check, with the 1.1 point rise in the SG&A ratio well within expectations.

Significant year-on-year gains UNIQLO International in both sales and income, with sales reaching JPN 114.0bln (+76.8% year on year) and operating income rising to JPN 16.5bln (+97.0%). Performance far outstripped our expectations in China, Hong Kong, Taiwan, South Korea, the United States, and Europe. UNIQLO operations in Southeast Asia also performed strongly as expected. UNIQLO International opened 68 new stores and closed two stores in the first quarter, bringing the total number of stores to 512 at the end of November 2013.

Global Brands also generated gains in both sales and income, with sales expanding to JPN 65.9bln (+36.5% year on year) and operating income rising to JPN 6.8bln (+9.2%). GU achieved double-digit growth in both sales and income. GU opened 39 new stores (including its first store outside Japan) and closed three stores, bringing the total number of GU stores to 250 at the end of November 2013.

Group sales: JPN 1.322trln (+15.7% year on year), operating income: JPN 156.0bln (+17.4%), ordinary income: JPN 155.0bln (+4.0%), net income: JPN 92.0bln (+1.8%), earnings per share: JPN 902.85, annual dividend forecast: JPN 300 per share (interim dividend: JPN 150, year-end dividend: JPN 150).