United Arrows turns a 4.2% sales gain into a 27.5% profit gain — and tells analysts the second quarter will be about clearing stock
First-quarter operating profit rose 27.5% on a 4.2% sales gain, with the SG&A ratio down 2.1 points. In a Q&A published on 21 August, management said selling prices rose 4-5% and warned that weak June trading has left inventory high going into Q2.
United Arrows lifted consolidated operating profit 27.5% year on year in the three months to June, to ¥3,231m, on sales up 4.2% at ¥39,789m, according to the results presentation the company published on 7 August. Recurring profit rose 22.6% to ¥3,300m and net profit attributable to owners rose 44.8% to ¥2,119m. The company absorbed the revenue lost to its divestment of Coen and still grew the top line.