The Latest Quarterly Report Of UNIQLO: Online Sales In Greater China Grew By 30% Over The Same Period

Uniqlo (UNIQLO)'s parent company, Fast Retailing Inc, announced the key financial data of the third quarter of the financial year last, and its earnings performance failed to meet expectations. However, XXX did not adjust its expectations for the whole year. It is estimated that the total sales volume for the 2018/2019 fiscal year ending August 31st will be 2 trillion and 300 billion yen, operating profit of 260 billion yen, and net profit of 165 billion yen.

Although the third quarter's performance did not meet expectations, it did not affect the market's confidence in the fast selling group, whose shares rose by 3.2% last Friday, contributing 79 points to the Nikkei average. The Nikkei (Nikkei average) rose 0.2% to 21685.90 on Friday, but last week the Nikkei average fell 0.3%, the first decline in six weeks, mainly due to the collapse of the Remixpoint Inc's share price.

In the third quarter ending May 31st, the key financial data of XXX group are as follows:

Sales amounted to 555 billion 200 million yen, an increase of 7.3% over the same period last year.

Operating profit was 74 billion 750 million yen, an increase of 9.3% over the previous year, below the 79 billion yen forecast by analysts.

Net profit of 44 billion 640 million yen, an increase of 1% over the previous year, below analysts' expectations of 47 billion yen.

UNIQLO's performance in Japan was unsatisfactory, which was the main reason for the failure of the fast selling group in the quarter.

In the first three quarters of this fiscal year ending May 31st,

Sales amounted to 1 trillion and 800 billion yen, an increase of 6.9% over the same period last year.

Operating profit of 247 billion 900 million yen, an increase of 3.6% over the same period

UNIQLO performance

In the third quarter, UNIQLO's performance was as follows:

Japan's local sales amounted to 209 billion 700 million yen, down 0.5% compared to the same period last year, operating profit of 28 billion 900 million yen, down 7.5% compared to the same period last year.

Online sales in Japan increased by 16.1% over the same period last year, reaching 19 billion yen.

Sales in the international market amounted to 240 billion 500 million yen, an increase of 15.3% over the same period last year, and operating profit of 36 billion 300 million yen, an increase of 14.9% over the same period last year.

The decline in local sales of UNIQLO is partly due to the fact that UNIQLO adjusted its annual promotional activities from May to June, and therefore failed to account for the third quarter sales. According to Xun group, sales of comparable stores in Japan increased by 27.3% over the same period in June, driven by annual promotions, while online sales increased by 70% over the same period last year. (see "ornate ambition"): Sales of UNIQLO Japan increased by 27.3% in June, thanks to excellent performance in summer clothing sales and annual promotional activities.

In the international market of UNIQLO, Greater China, Southeast Asia and Oceania performed better than expected, and achieved two digit sales and profit growth, which is the main driving force for the overall growth of the international market. Among them, online sales in the Greater China region grew by 30%, and profit grew by more than 20%.

The cold weather has had an impact on the sales of the Korean market in March, resulting in a decline in sales in the third quarter. Abnormal climate change and unstable political environment also have a certain impact on European sales. Although sales have increased, operating profits in European markets have declined. Driven by new stores, UNIQLO's sales in the United States have increased.

Other brands:

In the third quarter, the other brands of XXX group were as follows:

GU sales amounted to 68 billion 100 million yen, an increase of 12.1% over the same period, and operating profit of 5 billion 900 million yen, an increase of 105.8% over the same period last year.

Sales of Global Brands (including New York fashion brand Theory and French fashion brand Comptoir des Cotonniers) were 35 billion 900 million yen, down 1.1% compared to the same period last year, operating profit of 1 billion 400 million yen, down 29% compared with the same period last year.

GU brand big size T-shirts and sweaters sell better than expected, pushing comparable stores to grow.

Under the influence of abnormal cold weather, Theory sales grew, but operating profit was flat compared with the same period last year. Comptoir des Cotonniers's sales performance is still poor, and its losses have further expanded.