Uniqlo Global Brands has reported a huge fall in its revenue in the first quarter of FY2021.
The fashion stalwart saw the revenue of its Global Brands segment drop by a worrying 22.3 per cent to clock 28.0 billion yen for the said period.
The segment also saw a slight operating loss of 0.2 billion yen for the quarter. Notably, it had made a profit of 1.8 billion yen in the first quarter of FY2020.
Brand-wise, the retailer’s Theory brand posted massive fall in its revenue as well as profit during the quarter – owing majorly to the poor performance in Japan, the US and Europe.
Though the sales performance of its Japan-based PLST brand reached last year’s levels through October 2020, its first quarter revenue and profit slumped owing to rise in coronavirus cases in Japan in November.
The story wasn’t different for its France-based Comptoir des Cotonniers brand, which also saw its revenue fall – in addition to huge operating loss – during the quarter. This was due to pandemic-induced store closures in France in the last quarter of 2020.
Presenting FY2021 estimates, the retailer said that its Global Brands segment is expected to fall short of first-half estimates by reporting huge fall in revenue and profit.