Fast Retailing (TYO: 9983) 1H16 Results: Company Revises Guidance Downward Due to Weak Performance in Key Regions

Executive Summary

• Fast Retailing reported fiscal 1H16 revenues of ¥1,011.6 billion, up 6.5% year over year but missing the consensus estimate of ¥1,042.5 billion. EPS was ¥461.43, down 55.1% from ¥1,027.75 in 1H15.
• In the fiscal first half, Uniqlo Japan reported declines in both revenue and profit; Uniqlo International reported a rise in revenue and a decrease in profit; and the Global Brands division reported increases in both.
• For fiscal 2016, the company expects revenues of ¥1,800.0 billion, a 7.0% year-over-year increase. The company also expects EPS of ¥588.55, compared to ¥1,027.75 in fiscal 2015.