Japan-based Fast Retailing, which owns Uniqlo, foresees a huge decline in yearly profits!
The retail giant has confirmed that the annual profit may fall by as much 50 per cent to touch 130 billion yen owing to the impact of the deadly pandemic.
Earlier the prediction was a 44 per cent slump, but after a disastrous March to May quarter owing to closure of stores and poor sales, Fast Retailing has revised the numbers to 50.
What’s noteworthy is that Uniqlo’s domestic same-store sales in June have jumped by 26 per cent from what it was in June 2019.
The rise becomes all the more significant following a shocking 57 per cent fall in domestic same-store sales in April 2020.
The fast fashion retailer believes that despite a prediction of yearly sales going down, Uniqlo’s fast improving performance in Japan and China is a good encouragement for the Group. Consequently, it now plans to open lots of stores around the world in the days to come.
The Group is, reportedly, struggling in the US as of now, but good performance in Asia, particularly Japan and China, may help the retailer weather the crisis going forward.
In addition to Uniqlo, Fast Retailing owns J Brand, Theory and Helmut Lang, amongst others, and generates revenue of ¥2,130 billion.