OREANDA-NEWS. The Group UNIQLO International reported the following cumulative third-quarter consolidated results for the period spanning 1 September 2013 - 31 May 2014: consolidated net sales of JPN 1.088 trillion (+22.8% year-on-year), operating income of JPN 136.2 billion (+9.9% year-on-year), ordinary income of JPN 141.1 billion (-0.6% year-on-year) and net income of JPN 84.8 billion (-4.1% year-on-year).

All Group operations reported rising net sales and operating income, with UNIQLO International reporting a particularly strong expansion in both net sales and income over the nine-month period. In terms of non-operating income, the Group reported a year-on-year contraction in foreign exchange profits of JPN 12.5 billion. This factor was largely contributed by the slight year-on-year contractions in the consolidated figures for ordinary income and net income.

UNIQLO Japan reported gains in both net sales and income during the nine months ended 31 May 2014, with net sales reaching JPN 569.4 billion (+5.1% year-on-year) and operating income JPN 94.8 billion (+7.3% year-on-year). A 2.4% gain in same-store sales helped boost the cumulative third-quarter performance. Sales per store also increased as a direct result of our "scrap and build" strategy to increase the average size of our sales floors by replacing smaller outlets with large-format stores.

The total number of UNIQLO stores in Japan increased by 8, to 841 stores at the end of May 2014 compared to end of May 2013. This figure excludes the operation's 21 franchise stores. Breaking down the 2.4% gain in same-store sales, customer visits decreased by 0.5% year-on-year, while the average customer spending increased by 2.8%. On the profit side, the gross profit margin improved by 1.7% year-on-year for the nine months ended 31 May 2014, with strong sales of core spring/summer ranges and new seasonal items enabling us to maintain discounting at the planned level. On the other hand, the selling, general and administrative expenses to net sales ratio increased by 1.3% over the nine months ended 31 May 2014, mainly due to higher in-store personnel costs for part-time and temporary workers, and higher distribution and warehouse costs related to the company's decision to boost inventory of basic year-round items.

UNIQLO International performed as planned during the nine months ended 31 May 2014, generating significant gains in both net sales and income. UNIQLO International reported total net sales of JPN 327.7 billion (+71.3% year-on-year) and operating income of JPN 34.3 billion (+75.1% year-on-year). UNIQLO International contributed over 30% of consolidated net sales over the nine-month period. UNIQLO operations in Greater China (Mainland China, Hong Kong and Taiwan), South Korea, and Europe all reported continued strong gains in same-store sales, and higher-than-expected rises in both net sales and income over the ninemonth period. The total number of UNIQLO International stores expanded to 598 stores at the end of May 2014, a net increase of 188 stores compared to the end of May 2013.