UNIQLO Sales Myth Has Broken Down And Profits Of The Parent Company Have Begun To Shrink.

UNIQLO, who once created the "sales myth" in the clothing industry, is facing difficulties.

Worse than bad performance, UNIQLO's share price plummeted, which may make Ryui Masa, founder of the 2015 richest Japan, lose its richest seat.

As the first Asian clothing group, UNIQLO's parent company Xun Marketing Group announced the first half of fiscal year 2016 performance report, although group sales increased by 6.5% year-on-year, but operating profit fell by 33.8%.

Among them, UNIQLO performed poorly in both the Japanese and international markets, which is the main reason for the sharp decline in the performance of fast selling group, which is also the half year of fast selling group in the past 5 years.

The first decline.

"Consolidated income in the first half of this year has increased, but the decrease in operating profit has been mainly attributable to the unusually warm winter weather in the northern hemisphere at the end of last year, and the decrease in winter clothing sales of UNIQLO and the exchange loss caused by the appreciation of the yen".

The relevant person in charge told reporters that the Chinese market was not affected by the decline in performance. "In the first half of 2016, the sales revenue and profits calculated by Renminbi in mainland China increased.

We expect that in the second half of this year, UNIQLO overseas sales, including the Chinese market, will generate revenue and profits.

The situation.

Our expansion in the Chinese market will continue. "

"Opening shop costs and labor costs are growing," Shen Meng, executive director of incense capital, believes that competition is too fierce and cost increases are the direct incentives for the decline of UNIQLO profits.

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Some time ago, we talked about the establishment of a joint venture with the Canadian menswear Online Custom retailer. As a domestic company, we still had a slight decline in revenue in the first quarter despite the steady income.

It is reported that in the first quarter ended March 31, 2016, the total operating revenue of the group decreased by 4.19% to 232 million yuan, compared with 242 million yuan in the same period last year.

Net profit rose to 17.73% yuan to 12 million 750 thousand yuan, and weighted average net assets income increased 0.14 percentage points to 1.18%.

In the first quarter, the number of business outlets in the group was 44. Compared with the 5 stores in the same fiscal year, the group said that the main reason was that the stores were shut down due to the cancellation of the mall and poor management. The 5 closed stores accounted for only 2.11% of the total business receipts in 2015, and the group said it would not have any impact.

Therefore, the group will increase the expansion of overseas markets in the future, and realize the profits of the global market. However, due to the impact of the global economy, the market profits of the group period have recorded different declines. The domestic market is only northwest northwest, which has an increase of 1.01% over the same period of last fiscal year.

However, the group's online and offline sales performance was better than expected. Gross profit margin in the first quarter increased by 56.82% over the previous fiscal year.

It is worth mentioning that online sales performance increased compared to the previous fiscal year, which increased from 8.99% in the first quarter of fiscal year 2015 to 13.29%.