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    UNIQLO'S Overseas Market Profit Fell 28% In The First Quarter

    2020/1/10 12:31:00 0

    Uniqlo

    In January 9th, XXX group released its performance report for the first quarter of fiscal year 2020 (-11 month September 2019). The report showed that the combined income of the group was 623 billion 400 million yen in the quarter, down 3.3% from the same period last year, and the combined profit amounted to 91 billion 600 million yen, down 12.4% from the same period last year. The double decline in earnings and profits is mainly due to South Korea's boycott of Japanese goods and some factors such as Hongkong.

    Its main brand, UNIQLO, Japan's first quarter earnings of 233 billion yen (down 5.3%), operating profit of 38 billion 500 million yen (up 1.6% over the same period), recorded a decline in earnings and profit growth. New products such as broad leggings, knitted sweaters, and fashion products such as sweaters and tights are selling well, but the demand for cold proof clothing is weakened due to the rising temperature, and the charm of the topic merchandise has not been fully conveyed to customers, resulting in a decline in net sales in the same store.

    The first quarter income of UNIQLO overseas market was 280 billion 700 million yen (down 3.6% compared with the same period last year), and the operating profit was 37 billion 800 million yen (down 28%). Among them, the South Korean and Hongkong businesses both recorded a significant decline in earnings and operating losses, but the overseas UNIQLO performance after excluding the two places recorded a double increase in earnings and profits.

    GU (excellent) business segments, the first quarter of this fiscal year earnings of 72 billion 900 million yen (an increase of 11.4% over the same period), operating profit of 12 billion 300 million yen (an increase of 44.4% over the same period), recorded earnings, profits double growth. The division's effectiveness in the face of rising temperatures and the strong sales of knitted sweaters and thin coats, which were advertised by television, also recorded an increase in net sales in the same store.

    The sales of UNIQLO overseas market dropped by 3.6%. If it did not include a slight decline of 0.2% in 2017, it would be the first decline of UNIQLO's overseas sales in 10 years. The operating profit of the business decreased by 28%, the first decline since 2016.

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