The Net Profit Of UNIQLO Parent Company Has Been Reduced By More Than 40%.

The number of stores in major cities is increasing.

(UNIQLO) in the past year, the days were not so good: first, the fast selling net profit of UNIQLO parent company dropped sharply compared with the same period last year. Secondly, the price of Hongkong's pre depositary securities (06288, HK) was also cut off in a year.

However, the reporter noted that, in the face of net profit decline and stock price drop, the most important part of fast selling is its sales.

UNIQLO is still expanding, increasing the number of stores worldwide.

Although fast marketing still said that the company's vision is to become the world's first.

Manufacturers and retailers, but fast sales in July 14th still lowered the company's annual net profit forecast.

Profits and stock prices both plummeted.

In July 14th, XXX released its performance data in the first 9 months of fiscal year 2016 (September 1, 2015 ~2016 May 31st).

During the reporting period, the fast sales revenue reached 14346 billion yen, an increase of 6.4% over the same period last year, but net profit (profit in the period) was only 76 billion 700 million yen, down 45.2% compared with the same period last year.

For reasons of loss, Xun points out that it is mainly due to the fall in profits of the global UNIQLO division.

In addition, the yen's appreciation has also reduced the yen equivalent of long-term assets held by Xun.

The reporter noted that although the sales revenue for the first 9 months of fiscal year 2016 increased by 86 billion 500 million yen compared with the same period last year, the sales cost of the same period increased by 78 billion 600 million yen, plus sales and general administrative expenses, financing costs and other expenses climbed, resulting in a sharp decline in net profit of fast selling.

The fast sales also adjusted the business forecast for the 2016 fiscal year, predicting that the income would still be 18000 billion yen, but the pre tax profit from the previous forecast of 102 billion 500 million yen to 83 billion yen.

In addition to the sharp decline in net profit, the share price of fast selling was also cut off in a year.

The rapid sale of Hongkong depositary securities was HK $38.3 per share in early August 2015, but it fell to HK $19 in April 2016, while its current share price is only HK $20.6.

Some market participants pointed out that the decline of fast selling shares is also closely related to the weakening of their profitability.

The number of stores is still expanding.

XXX has always expressed its vision to become the leader in the global apparel industry, and the way to expand it is to expand the expansion of UNIQLO brand and GU brand outside Japan.

Among them, UNIQLO is the most important brand of fast selling.

In the first 9 months of fiscal year 2016, the Fast Retailing UNIQLO brand earned 11782 billion yen, accounting for 82.25% of its total revenue.

In the above-mentioned period, the number of stores in UNIQLO increased by 2 to 846, while the number of UNIQLO stores outside Japan increased by 161 to 928.

From the 3~5 month of 2016, UNIQLO's profit in the Chinese market has increased, and double income growth has been seen in Southeast Asia, Oceania and Europe, but UNIQLO is still losing money in the US.

For the rapid expansion strategy of UNIQLO, Galaxy Securities has pointed out that UNIQLO has captured the similar form and culture of consumers in Asia, and has expanded rapidly in the Asia Pacific region led by the Chinese market.