Fast Retailing reports Q1 results; lowers FY16 outlook
Reports Q1 (Nov) net income of JPY48.0 bln; revs increased 8.5% YoY to JPY520.3 bln.
- Fall Winter ranges got off to strong start, boosting same-store sales in September and October. However, unexpected warm weather in November lowered demand for winter items, pushing overall revenue sharply lower.
- On the profit side, heavy discounting in November squeezed gross margins and the shortfall in sales swelled the SG&A ratio. Operating profit declined 12.4% year on year.
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Fiscal 2016 consolidated estimates: Downward revisions
- Consolidated revenue: JPY1.800 trillion (+7.0% year on year), operating profit: JPY180.0 billion (+9.4%), profit attributable to owners of the parent: JPY110.0 billion (-0.0%).
- Basic earnings per share: JPY1,079.01.
- These include downward revisions as follows: JPY100.0 billion for revenue, JPY20.0 billion for operating profit, and JPY5.0 billion for profit attributable to owners of the parent. Scheduled FY2016 annual dividend: JPY370 per share, unchanged.