Fast Retailing's GU sees sales rising despite disappointing comps, Theory still struggles
At youth brand GU, in the three months through May 2025 (that is, Q3) revenue rose to ¥90.4 billion (€527bn/£454bn/US$615), up 4.1%, while operating profit rose 12.1% to ¥12.4 billion.
Despite strong sales of GU's range of Barrel Leg Pants, Sweat Look T-shirts, DRY T-shirts, and other items, same-store sales increased only slightly year-on-year 'due insufficient volumes and marketing of potentially promising products such as haori-style jackets and long T-shirts,' the company said.
Meanwhile, the nine months to May saw GU revenue up 4% to ¥256.2 billion and operating profit down 10.7% at ¥26.3 billion.
The gross profit margin declined as yen weakness pushed up the cost of sales. The selling, general and administrative expense ratio increased as the expansion in sales wasn't enough to counter higher costs in areas such as salaries.
As for the group's Global Brands, its said Q3 revenue declined 4.6% to ¥32.7 billion but operating profit increased 35.1% to ¥1.9 billion.
Revenue declined 'on the back of lacklustre sales at the Theory label. Both Theory Japan and Theory Asia reported lower revenue and profit levels 'on the back of struggling department store sales and declining consumer appetite for apparel, respectively'.
Meanwhile overall profit increased due to a contraction in losses at the Comptoir des Cotonniers label'. Revenue at Comptoir des Cotonniers declined because store numbers had been reduced, but same-store sales increased.
And in the nine months through May 2025, the segment reported a 3.1% drop in revenue to ¥100.5 billion but moved into the black with operating profit of ¥2.8 billion (it had made an operating loss of ¥0.3 billion in the previous year).
Q3 at PLST saw 'sharply higher revenue and profit on the back of strong sales of new products and overall strong sales, buoyed by successful product launches at the Thank You Festival'. The company didn't give any monetary figures or percentages for PLST.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
2 hours ago
- Fashion Network
Palm Angels partners with Area B to expand underwear line in EMEA region
The Palm Angels universe continues to expand. Founded in 2015 by Francesco Ragazzi and now controlled by US-based business Bluestar Alliance, the label has signed a five-year agreement with Area B to develop its new underwear line in the EMEA region. The first collection resulting from the partnership with the Padua-based underwear and beachwear specialist will include men's and women's models and will debut on the market in January 2026. "The license will enable Palm Angels and Area B to reach new markets, engage key players and offer consumers high-quality products at an affordable price," the brand announced in a statement. The deal comes a few months after the announcement of the agreement with Revlon to launch the first Palm Angels-branded fragrance line, expected in 2027. "Area B is excited to begin working with Bluestar Alliance to strengthen Palm Angels' positioning in the underwear industry," said Federico Venturato, owner and CEO of Area B. "Our team of qualified and dynamic professionals has gone through one of the most complex periods in the history of the textile industry over the past five years. I am confident that their expertise will help further develop and expand Palm Angels' distribution and continue to offer consumers the quality and craftsmanship they have come to expect from the brand." Area B has been in the business of manufacturing and distributing beachwear, underwear and sportswear for more than 20 years. Its portfolio includes licenses for brands such as Philipp Plein Mare, Kurt Geiger London, and Trussardi among others. Palm Angels was acquired in early 2025 by global brand management company Bluestar Alliance, owner of streetwear label Off-White, among others. Following the transaction, Palm Angels' Francesco Ragazzi exited the business' corporate structure.
Fashion Network
4 hours ago
- Fashion Network
Palm Angels partners with Area B to expand underwear line in EMEA region
The Palm Angels universe continues to expand. Founded in 2015 by Francesco Ragazzi and now controlled by US-based business Bluestar Alliance, the label has signed a five-year agreement with Area B to develop its new underwear line in the EMEA region. The first collection resulting from the partnership with the Padua-based underwear and beachwear specialist will include men's and women's models and will debut on the market in January 2026. "The license will enable Palm Angels and Area B to reach new markets, engage key players and offer consumers high-quality products at an affordable price," the brand announced in a statement. The deal comes a few months after the announcement of the agreement with Revlon to launch the first Palm Angels-branded fragrance line, expected in 2027. "Area B is excited to begin working with Bluestar Alliance to strengthen Palm Angels' positioning in the underwear industry," said Federico Venturato, owner and CEO of Area B. "Our team of qualified and dynamic professionals has gone through one of the most complex periods in the history of the textile industry over the past five years. I am confident that their expertise will help further develop and expand Palm Angels' distribution and continue to offer consumers the quality and craftsmanship they have come to expect from the brand." Area B has been in the business of manufacturing and distributing beachwear, underwear and sportswear for more than 20 years. Its portfolio includes licenses for brands such as Philipp Plein Mare, Kurt Geiger London, and Trussardi among others. Palm Angels was acquired in early 2025 by global brand management company Bluestar Alliance, owner of streetwear label Off-White, among others. Following the transaction, Palm Angels' Francesco Ragazzi exited the business' corporate structure.
Fashion Network
4 hours ago
- Fashion Network
Palm Angels partners with Area B to expand underwear line in EMEA region
The Palm Angels universe continues to expand. Founded in 2015 by Francesco Ragazzi and now controlled by US-based business Bluestar Alliance, the label has signed a five-year agreement with Area B to develop its new underwear line in the EMEA region. The first collection resulting from the partnership with the Padua-based underwear and beachwear specialist will include men's and women's models and will debut on the market in January 2026. "The license will enable Palm Angels and Area B to reach new markets, engage key players and offer consumers high-quality products at an affordable price," the brand announced in a statement. The deal comes a few months after the announcement of the agreement with Revlon to launch the first Palm Angels-branded fragrance line, expected in 2027. "Area B is excited to begin working with Bluestar Alliance to strengthen Palm Angels' positioning in the underwear industry," said Federico Venturato, owner and CEO of Area B. "Our team of qualified and dynamic professionals has gone through one of the most complex periods in the history of the textile industry over the past five years. I am confident that their expertise will help further develop and expand Palm Angels' distribution and continue to offer consumers the quality and craftsmanship they have come to expect from the brand." Area B has been in the business of manufacturing and distributing beachwear, underwear and sportswear for more than 20 years. Its portfolio includes licenses for brands such as Philipp Plein Mare, Kurt Geiger London, and Trussardi among others. Palm Angels was acquired in early 2025 by global brand management company Bluestar Alliance, owner of streetwear label Off-White, among others. Following the transaction, Palm Angels' Francesco Ragazzi exited the business' corporate structure.
