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Sandra Halliday Published
January 13, 2025
As Japan’s Fast Retailing reported its Q1 results on Thursday it was easy to overlook the performance of some of its smaller (but not small) brands as the star Uniqlo operation took centre stage.
But it was significant that two of those smaller brands do seem to be recovering from the worst of the pandemic as they reported rising sales during the period.
The labels that are part of its Global Brands division reported not just a rise in revenue but a move back into the black in the quarter.
The segment generated revenue of ¥30.7 billion (€234 bn), which was a 9.5% rise compared to a year ago. Operating profit climbed to ¥2.5 billion from a ¥0.2 billion loss recorded in the first quarter of fiscal 2025.
The Theory operation generated “strong increases in both revenue and profit, thanks primarily to a recovery in performance and a move back into the black for Theory in the United States”.
And its France-based Comptoir des Cotonniers brand reported higher revenue and also a shift back into profit after it was able to avoid temporarily closing any stores due to Covid-19.
However, PLST reported a decline in both revenue and profit as that operation “struggled to attract customers during the Covid-19-related state of emergency in Japan”.
The company also said the permanent closure of unprofitable stores and other structural reforms improved cost efficiencies.