UNIQLO Operations - TextilWirtschaft

Breakdown of SG&A Expenses
Gross profit rose ¥35.9 billion, to ¥248.3 billion. The gross
profit margin was 47.3%, approximately the same as for the
previous fiscal year, as a 1.1 percentage point decline in the
UNIQLO Japan gross profit margin was offset by the contribution
of high-margin Global Brand operations.
� SG&A Expenses
SG&A expenses on a consolidated basis increased ¥41.3 billion,
to ¥183.4 billion, and the ratio of SG&A expenses to
consolidated net sales increased to 34.9%, compared with
31.7% for the previous fiscal year. This increase in expenses
was due to a rise in the ratio of SG&A expenses to sales in
the UNIQLO Japan operations, the consolidation of certain
subsidiaries with high ratios of SG&A expenses to sales, and
an increase in the amortization of goodwill.
SG&A expenses in UNIQLO Japan in fiscal 2007 amounted
to ¥128.6 billion (representing an increase of 12.7% year
on year). This increase was generally at the level planned,
but, as a result of a shortfall in sales compared with the plan,
the ratio of SG&A expenses to sales increased. In addition to
rises in expenses owing to expansion in employment, personnel,
and advertising expenses incurred in connection with
measures to strengthen the UNIQLO brand, rental costs rose
along with the rise in the number of stores located in buildings
in urban centers, shopping centers, and other locations.
The consolidation of certain subsidiaries with higher ratios
of expenses to sales was also a factor driving the ratio of
SG&A expenses to sales higher. These were CABIN and
G.U., which were newly consolidated, PRINCESSE TAM.TAM
business, which was consolidated for the full year, and consolidation
of COMPTOIR DES COTONNIERS business, which
has a higher expenses ratio and reported a substantial rise in
sales for the fiscal year. In addition, amortization of goodwill
rose ¥3.1 billion from the previous fiscal year, to ¥4.2 billion
for the fiscal year under review. Of this total, amortization of
goodwill in connection with the acquisition of Créations
Nelson S.A.S. and PETIT VEHICULE S.A.S. together amounted
to ¥3.8 billion, and amortization in connection with the
purchase of CABIN shares for the fiscal year was ¥0.4 billion.
46
FAST RETAILING ANNUAL REPORT 2007
2007 2006 2005
Millions % to % Millions % to % Millions % to %
of Yen Sales Change of Yen Sales Change of Yen Sales Change
Personnel ¥070,370 13.4 +34.6 ¥052,272 11.6 +25.6 ¥041,620 10.9 +15.2
Advertising and promotion 26,261 5.0 +18.1 22,231 5.0 +9.8 20,246 5.3 +10.7
Rent 43,453 8.3 +26.4 34,377 7.7 +23.8 27,773 7.2 +8.4
Depreciation/amortization 6,567 1.3 +21.4 5,409 1.2 +122.3 2,433 0.6 +32.2
Others 36,780 7.0 +32.4 27,771 6.2 +29.0 21,524 5.6 +24.0
Total ¥183,432 34.9 +29.1 ¥142,063 31.7 +25.1 ¥113,598 29.6 +14.5
Earnings per Share
(Yen)
203.05
304.92
331.99
397.38
311.98
FY ’03 ’04 ’05 ’06 ’07
� Other Gains and
Losses
Other gains amounted to
¥1.9 billion. The principal
other items were a gain of
¥1.4 billion on the sale of
certain fixed assets of
CABIN and ¥0.2 billion
resulting from the reversal
of the allowance for doubtful
accounts of ONEZONE.
Other losses were ¥3.7 billion,
consisting primarily of
Net Income
(Billions of Yen)
FY ’03 ’04 ’05 ’06 ’07
¥1.1 billion in losses due to the removal of fixed assets and
other losses incurred in connection with the closure of stores
in the UNIQLO Japan and CABIN operations; ¥1.4 billion in
losses due to the impairment of assets in the ONEZONE,
CABIN, and UNIQLO USA; and ¥0.6 billion in the one-time
amortization of goodwill accompanying the write-down of the
value of VIEWCOMPANY stocks.
� Net Income
Net income for fiscal 2007 amounted to ¥31.7 billion, ¥8.6
billion lower than for the previous fiscal year. Net income per
share was ¥311.98, ¥85.40 below the level for fiscal 2006.
Results by Group Operation
UNIQLO Japan Operations
The UNIQLO Japan operations, which account for 81% of
consolidated net sales, reported an increase of 7.9% in sales
in fiscal 2007, to ¥424.7 billion. Factors contributing to this
rise in sales were an increase of 27 in the number of directlymanaged
stores compared with the end of the previous fiscal
20.9
31.4
33.9
Operating Income
(Billions of Yen)
41.3
64.0
56.7
40.4
70.4
31.7
64.9
FY ’03 ’04 ’05 ’06 ’07