UNIQLO Parent Company Sells Faster Than 2019 In The First Half Of The Year, China'S Market Growth Of More Than 20%

Fast Retailing, Japan's fast fashion giant Uniqlo, recently said that although the 2019 quarter's second quarter profits were better than expected, the group decided to reduce its annual operating profit expectations despite the adverse effects of winter clothing discount promotions and overseas brand losses.

According to Xun, sales increased by 9.4% to 623 billion 200 million yen compared to the second quarter of February 28, 2019, and net profit increased 58.3% to 40 billion 600 million yen compared with the same period last year, mainly benefiting from the growth of China's market and online business.

Xun points out that sales, operating profit, pre tax profit and net profit in the first half fiscal year are all high. In the 2019 half year of September 1, 2018 to February 28, 2019, the key business data of XXX group are as follows:

Sales increased by 6.8% to 1 trillion and 270 billion yen compared with the same period last year.

Operating profit increased by 1.4% to 172 billion 900 million yen compared with that of UNIQLO and Japan.

Pre tax profits rose 5.5% to 174 billion 200 million yen over the same period last year.

Net profit increased 9.5% to 114 billion yen compared with the same period last year.

XXX points out that the group's medium-term goal is to become the world's largest apparel retailer. "To achieve this goal, we are committed to promoting the expansion of UNIQLO international and leisure fashion brand GU. We continue to open UNIQLO stores in the existing market, open global flagship stores and large stores in big cities, and strive to promote UNIQLO to become a global brand. In the International Business Department of UNIQLO, the Greater China market (mainland China, Hongkong and Taiwan) and the Southeast Asian market have entered a new stage of growth. UNIQLO developed steadily in the United States for the 2019 fiscal year. In terms of GU, we plan to open more stores in the Japanese market and accelerate the international expansion of brands, especially in the Greater China and Korea markets.

UNIQLO brand performance

2019 in the first half of fiscal year, UNIQLO Japanese local market:

Sales fell 0.5% to 491 billion 300 million yen compared with the same period last year.

Operating profit fell 23.7% to 67 billion 700 million yen over the same period.

Same store sales, including electricity providers, fell 0.9% year-on-year.

Although the warm weather in October 2018 and November affected the core winter products, but with the gradual cooling down in December and January, sales of HEATTECH, down garments and other commodities had been boosted. The spring products such as sweaters, tights and BLOCKTECH had made a good start in February. In the first half of the fiscal year, online sales grew strongly, up 30.3% over the same period last year, contributing 9.9% to the group's sales. With the decline of the yen exchange rate and the discount sale in winter, gross profit fell 3.3% year-on-year.

The number of new stores in the local market of UNIQLO is not as high as the number of closed ones. Tadashi Yanai, group chairman, said it would make strategic adjustments to the stores in the Japanese market in the future. "We have to consider closing and refurbishment more than the opening speed of the store. From now on, we can't keep those stores that have no reason to exist. We must think about what they can provide for customers and whether they have practical functions. If the function of a physical store can be replaced by the electricity supplier, then we will switch to the electricity supplier. Of course, clothes only try to know whether size, color and material are good, so we will adopt a new business form combining online and offline.

2019 in the first half of fiscal year, UNIQLO overseas international market:

Sales increased by 14.3% to 580 billion yen compared with the same period last year.

Operating profit grew 9.6% to 88 billion 400 million yen over the same period.

From regional markets:

Sales and profits in the Greater China market increased by two digits, with sales and profits continuing to maintain 20% growth in mainland China.

Korean market sales and profits showed an upward trend.

Sales and profits in Southeast Asia and the Pacific increased significantly, benefiting mainly from the growth of same store sales in cities.

American market profit is positive.

The European market is growing steadily.

In September 2018, the first Holland store in UNIQLO opened in Amsterdam. In October, the largest global flagship store in Southeast Asia opened in Manila, Philippines.

Sales and profits of sub line GU increased significantly, with sales rising 10.7% to 117 billion 100 million yen compared with the same period, and operating profit increased 54.3% to 14 billion 100 million yen. Large scale television advertising and online marketing activities, which conform to the trend of the public product mix, have promoted the growth of brand same store sales. According to Xun, strong sales, strict discounts and controls, and lower sales cost pushed the gross margin of the brand up three percentage points.

Other brands of XXX group were classified as Global Brands. Sales in the first half of fiscal year fell 0.9% to 77 billion 700 million yen, and operating profit was 3 billion 100 million yen (a loss of 5 billion 600 million yen last year). According to brand:

New York fashion brand Theory has increased sales in the US market, and its profit is on the rise.

French fashion brand Comptoir des Cotonniers, continuous loss;

Fast forward group hopes for the 2019 fiscal year ending August 31, 2019.

Operating profit grew 10.1% to 260 billion yen, compared with 270 billion yen earlier.

Sales grew by 8% to 2 trillion and 300 billion yen, consistent with previous ones.

Net profit increased 6.6% to 165 billion yen compared with the previous period.