Financial Highlights

Consolidated Statements of Income (Summary)year ended March 31, 2011

Ordinary income was ¥7,240 million, up 43.7% year on year.

In addition to robust net sales, results were bolstered by an improvement in gross profit, due mainly to enhanced accuracy in the Group's merchandising activities, and an increased emphasis on cost efficiency in the use of selling, general and administrative expenses. As a result, ordinary income exceeded ¥7,000 million for the first time since the fiscal year ended March 31, 2007.

Extraordinary losses totaling ¥1,417 million were brought to account.

In the fiscal year under review, UNITED ARROWS LTD. recorded extraordinary losses totaling ¥1,417 million. This total included ¥921 million reflecting the impact of the adoption of the accounting standard on asset retirement obligations, ¥408 million representing impairment losses owing to the relocation, renewal, and closure of stores, and ¥7 million attributable to the Great East Japan Earthquake.

Net income was ¥3,596 million, up 156.2% year on year.

Following completion of the liquidation of subsidiary company PERENNIAL UNITED ARROWS CO., LTD., and final determination of the subsequent non-consolidated bad debt loss, the Group reversed the amount of deferred tax assets recorded in the previous fiscal year, resulting in a drop in the effective income tax rate.

		millions of yen	%
2010 (April 1, 2009 – March 31, 2010)		2011 (April 1, 2010 – March 31, 2011)	YoY
Net sales	83,504	90,571	108.5
Cost of sales	40,639	42,569	104.7
Gross profit	42,865	48,001	112.0
Selling, general and administrative expenses	37,922	40,617	107.1
Operating income	4,942	7,384	149.4
Total non-operating income	261	164	62.9
Total non-operating expenses	166	307	184.7
Ordinary income	5,037	7,240	143.7
Total extraordinary income	138	104	75.4
Total extraordinary loss	1,326	1,417	106.8
Income before income taxes	3,849	5,928	154.0
Income taxes—current	2,672	1,875	70.2
Income taxes—deferred	△227	455	-
Net income	1,403	3,596	256.2