Uniqlo owner Fast Retailing appoints creative head as profits slide

The Uniqlo-owner has appointed John C Jay as creative chief. Jay, who is a former partner at US ad agency Wieden + Kennedy, will oversee areas including branding and store design.

The retailer posted a 2.8% fall in group operating profits to ¥130.4bn (£754m) after a ¥19.3bn (£111m) impairment relating to tumbling sales at its premium J Brand business.

However, Fast Retailing group revenue increased 21% to ¥1.38trn (£8bn) in the year to August 31.

Sales of the Uniqlo brand in its home market of Japan were up 4.7%, while rocketing 64.7% in its overseas stores.

Fast Retailing is expanding its overseas business as it aims to take on larger rivals including Inditex. It plans to open 100 Uniqlo stores in the US, where it is currently loss-making. The retailer operates 25 stores in the country but was hit by the cool summer in the second half.

“We have to gain a top position in the US in order to become the world’s No. 1,” chief executive Tadashi Yanai said at a news conference, according to the Wall Street Journal.

 “We are going to make necessary acquisitions, but we’ll do so carefully.”

Fast Retailing opened 187 overseas stores in the year, bringing its total to 633 across the US, China, Europe and South East Asia.

The retailer debuted in Germany with a flagship in Berlin in August.

For the current financial year, Fast Retailing expects revenue to rise 16% to ¥1.6trn (£9.3bn) and net profit to increase 34% to ¥100bn (£578m).