China'S Same Store Sales Skyrocketed To Lift Japanese Giants.

The management of the Xun group said that the impact of weather on its business is greater than that of the trade war.

July 12, 2018: Fast Retailing Co. Ltd. (9983.T) XXX group's strong growth in the three quarter continued to be led by overseas Uniqlo UNIQLO. However, the performance of all the businesses has weakened compared with the first half of the fiscal year. The largest local clothing retailer in Asia has warned that the profits of Japan's Uniqlo Uniqlo UNIQLO will decline in the four quarter due to weak sales.

The same store sales of Uniqlo UNIQLO in Japan have not been able to grow for two consecutive months. In May (the end of the three quarter) and the first quarter of June, they fell by 2.7% and 4% respectively. The Fast Retailing Co. Ltd. fast marketing group all explained the influence of weather demand.

Entering the July, the disaster caused by the record breaking rainstorm in western Japan has also had a great impact on sales this month, and the group has announced the activities of donating clothes and relief.

In the three quarter ended May, the sales of Uniqlo stores in Japan increased by 5.4% year-on-year, 8.4% slower than the 8.4% in the first half of the fiscal year, and the income rose 6.3% to 210 billion 700 million yen.

Overseas UNIQLO is still the main driving force for the growth of fast selling group.

Overseas Uniqlo & amp; UNIQLO's revenue and operating profit recorded a 23.7% and 63.7% increase of 208 billion 600 million yen and 31 billion 600 million yen, the group said that these two indicators have gone far beyond expectations.

Among them, the same store sales in Greater China, Southeast Asia and Oceania all have double-digit growth, and Europe is also under the guidance of the strong demand Russia to achieve positive growth.

The United States continued to record operating losses, but it has declined. Annual losses are expected to halve by half year on year.

For the Sino US war of trade and the spread of consumer goods, the Trump administration announced this week that it would levy an import tariff of 10% on Chinese made goods worth 200 billion dollars in clothing, shoes and so on. Takeshi Okazaki, the chief financial officer of Fast Retailing Co. Ltd. fast marketing group, pointed out at today's post media conference that the differences between China and the US have limited impact on the supply chain of the group, and "no serious problems will arise".

He even thought that the United States might not levy taxes on Chinese clothing in the end, "because this is not good for American consumers. We are sure the US government understands this," he explained.

If the tax is realized, he said the group is ready. "We are preparing to develop a system that can overcome any situation in the global supply chain."

The supply chain of Fast Retailing Co. Ltd. group has more than 100 Chinese factories, including suppliers of Shenzhou International (2313.HK) and Jingyuan International (2232.HK). They have accelerated the pfer of production lines to Southeast Asia and other regions in recent years due to problems such as cost, labor and policy.

Takeshi Okazaki said the group is "preparing to develop systems that can overcome any circumstances in the global supply chain", which means that the capacity to export to the United States can be pferred from China.

Compared with the supply chain, analysts are more concerned about whether the trade war upgrade will damage the group's largest overseas.

More than 600 stores in China.

Takeshi Okazaki said the group is closely monitoring the situation in China, but is optimistic about the size of the local market.

He also stressed that the impact of economic conditions on the group's business is actually not as good as that of the weather, because the products of Uniqlo's UNIQLO are "necessities", unlike luxuries.

Fashion clothing is easily affected by the economic climate.

On the other hand, in order to further enhance the reputation of Uniqlo UNIQLO on the global scale, the brand announced this month the identity of the world cyber forum ambassador Roger Federer Federer Roger Federer.

Federer has already appeared in the Wimbledon tennis tournament at Uniqlo's UNIQLO's Dry-ex functional clothing, but two of them are out.

Earlier, ESPN said the Fast Retailing Co. Ltd. XXX group had a contract for the 36 year old veteran for ten years, worth up to 300 million dollars, while Unilqo Unilqo UNIQLO did not clarify Federer's endorsement deadline in the press release.

At present, the second largest brands of GU, which are actively developing overseas business in the Greater China region, are getting weaker in the three quarter. Not only the revenue growth has slowed down to 8.3% from the first half of the fiscal year, but also the same store sales have continued to retrogress, and the operating profit has been reversing the growth in the first half of the fiscal year, a sharp decrease of 20% per annualized year.

The group said the brand needs to increase its discount promotion efforts, and its profit performance is not as good as expected.

After the excellent and independent resolution of GU in the fiscal year, the global brand business can only rely on Theory.

The double growth of the Theory brand's revenue and earnings has helped boost global brand business revenue by 7.4% to 36 billion 300 million yen, and operating profit rose 25.3% to 2 billion 100 million yen, compared with France's.

The brand Princess Tam Tam Tam and the US high-end Cowboy brand J Brand continue to record operating losses, and the loss of French women's wear brand Comptoir des Cotonniers has expanded.

The three quarter revenue of Fast Retailing Co. Ltd. is 517 billion 300 million yen, up 12.4% from the same period last year, operating profit increased 36.9% to 68 billion 400 million yen, 15.7% higher than the 59 billion 100 million yen expected by the market, and the operating profit margin increased by 230 basis points to 13.2%.

Management will maintain annual revenue growth of 13.3% to 2 trillion and 110 billion yen, operating profit growth of 27.5% to 225 billion yen and net profit growth of 9% to 130 billion yen outlook unchanged. This will be the best performance of the group in history.

The operating profit of overseas and Japanese Uniqlo, UNIQLO, is expected to increase significantly, while GU excellent will retrogress. The global brand business will be operating loss due to Comptoir des Cotonniers and Helmut Lang, respectively, recording a 1 million 35 thousand and 300 yen equivalent impairment loss.

At the end of the fiscal year ended August, the Group expects that the number of stores in Japan and overseas Uniqlo UNIQLO will increase to 830 and 1255 respectively, with the GU excellent to 393, and the global brand store to reach 989, with a total number of 3467 stores.

Fast Retailing Co. Ltd. (9983.T) on Thursday reported 49230 yen, a 3.82% rise in the whole day, the cumulative increase in 2018 to 6%.

The group's quarterly report is released after the closing session, and investors' response needs to be reflected on Friday.