Uniqlo witnesses growth in China, South Korea despite sluggish first half

by Apparel Resources News-Desk

12-April-2019  |  2 mins read

Uniqlo store in China
Image Courtesy: fastretailing.com

Following Uniqlo owner Fast Retailing’s heavy losses from its overseas brands and also disappointed by the heavy discounts offered on winter apparels after a warm season, the brand has now lowered its outlook for the year.

At the start of the year, the company had predicted an operating profit of ¥ 270 billion; however, the numbers have been now revised to ¥ 260 billion for the year through August, which is still estimated to be a record high.

The first half of the present financial year saw the company’s revenue slumping to ¥ 491.3 billion (5 per cent down from what it was during the same period in the previous year). Similarly, operating profits too went down and totalled ¥ 67.7 billion (23 per cent down from the last financial year). The online sales, on the other hand, saw an impressive jump of 30.3 per cent.

The weak first half was, however, compensated by a double-digit increase in Uniqlo’s sales and profit  in China, which enabled the fashion brand see a rise in the operating profit to touch ¥ 68 billion for Q2.

Uniqlo South Korea too saw a significant rise in revenue as well as profit. Expressing happiness, Tadashi Yanai, Chairman, President, CEO, Uniqlo, said that the company’s operation in China, Southeast Asia and Oceania continued to report strong growth in revenue and profit.

Notably, the company increased its number of store locations to 633 in China in last fiscal year, which is 78 stores more than the previous year.

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