In its Q1 results announcement, Japanese retail giant Fast Retailing emphasized the strong performance of its high-end brands within its Global Brands division. While Uniqlo, the company’s star brand, received much of the attention, there were notable signs of recovery from the pandemic for two smaller brands in the portfolio.
During the quarter, the Global Brands division, which includes Theory and Comptoir des Cotonniers, achieved a 9.5% increase in revenue, reaching ¥30.7 billion (€234 billion), compared to the same period last year. Additionally, operating profit rose to ¥2.5 billion, a significant improvement from the loss of ¥0.2 billion in Q1 2021.
Theory, a brand based in the United States, experienced a substantial boost in both revenue and profit, driven primarily by its recovery from the pandemic and ability to return to profitability. Similarly, French brand Comptoir des Cotonniers reported higher revenue and a return to profit, successfully avoiding temporary store closures due to Covid-19.
However, not all of Fast Retailing’s brands experienced positive results. PLST, another label within the Global Brands division, faced challenges in attracting customers during the Covid-19 state of emergency in Japan, resulting in a decline in both revenue and profit. To address these difficulties, the company took strategic measures, such as permanently closing unprofitable stores and implementing other structural reforms, to enhance cost efficiency.
Fast Retailing’s Global Brands division plays a crucial role in diversifying the company’s portfolio and targeting different market segments. The recovery observed in Theory and Comptoir des Cotonniers is an encouraging sign for the division’s overall performance. As the retail industry continues to navigate the ongoing pandemic’s challenges, Fast Retailing’s ability to adapt and support its brands will be crucial for their long-term success.
Useful links:
– Fast Retailing Annual Report
– Fast Retailing Group Overview
