UNIQLO's Parent Company Has Set A New Revenue Record. The Chinese Market Has Been A Great Help.

Many foreign brands are closing down, and UNIQLO is still living well in China.

In late July 11th, UNIQLO parent fast Marketing Group announced the financial data in the first three quarters of fiscal year 2019. In the earnings report, XXX said that the combined income, revenue, pre tax profit and net profit of the first three quarters of this fiscal year have all set a record high.

Specifically, as of May 31, 2019, the total revenue of XXX group was 18288 billion yen (about 115 billion 800 million yuan), an increase of 7% over the same period last year; revenue was 15 billion 670 million yuan, an increase of 3.7% over the previous year; the profit before tax was 15 billion 650 million yuan, an increase of 4.1% over the same period; the profit from the parent company was 10 billion yuan, up 7% over the same period last year.

The main reason for better performance is the strong growth of the brand UNIQLO in overseas markets, which contributed more than 80% of the group's revenue. According to the financial report, the total income of overseas UNIQLO division reached 51 billion 950 million yuan in the first three quarters of fiscal year 2019, an increase of 14.6% over the same period last year, with a turnover of 7 billion 900 million yuan, an increase of 11.1% over the same period, and both recorded double-digit growth.

China's market has been a great help to its success.

Performance in 9 months ended May 31, 2019

The Chinese market still has the biggest credit. Although South Korea, the United States and other markets have seen a decline in sales, leading to the expected performance, but in the mainland market profit growth of more than 20% driven by the Greater China region, the overall profit achieved double-digit growth, far higher than the overall brand growth level, but also led to the group's overall growth level.

Based on the excellent performance of the Greater China region, XXX group will focus on the market and expand the business scale of GU brand. GU brand is the best performing brand of XXX group besides UNIQLO. The first three quarters of GU increased 11.2% over the same period last year, and the profit grew by 74.5% over the same period last year.

China's market has been a great help to its success.

In the nine months ending May 31, 2019, the performance and share of the major markets of XXX group

The performance of other major markets is not satisfactory. Japan's domestic market performance, which was once one of the driving forces of growth, declined significantly, and the profit in the first three quarters fell by 19.5%. On the one hand, in the first half of the year, the marketing profit was increased by the warm winter marketing discount rate. On the other hand, it was the process of the electric business of the Japanese UNIQLO division. The increase in store sales resulted in an increase in inventory, and the high depreciation cost brought by the investment warehouse, which offset the increase in revenue. The third quarter profit and gross profit margin fell significantly, mainly in the big promotion delay, resulting in the same store sales decline.

The development of global brands is also not smooth. The French women's clothing brand Comptoir des Cotonniers expanded its losses, while the French lingerie brand Princess tam.tam and the American denim brand J Brand continued to lose money.

In the backdrop of weak domestic market growth and global business development, the Chinese market with high growth has become the biggest growth power of UNIQLO, and has also closed its stores in Zara, HM and other foreign fast fashion brands, and Forever21 and New Look have become unique in the Great Depression environment of the Chinese market. Author: Peng Qian