UNIQLO Earned Only 6 Billion. In The Second Half, He Plans To Open Another 120 Stores.

In April 9th, FASTRETAIL-DRS, the parent company of UNIQLO, released its interim results for the 6 months ended February. During the reporting period, the company achieved a profit of 1 trillion and 208 billion 512 million yen (about 77 billion 247 million yuan combined with the first textile net note), a decrease of 4.7% compared with the same period last year, and the net profit attributable to the parent company was 100 billion 459 million yen (about 6 billion 421 million yuan RMB). The first textile net) dropped by 11.9% compared with the same period last year.

Xunmei group said that the decline in performance during the reporting period was mainly due to the adverse effects of the epidemic and other factors. The sales revenue and profits of fast retailing group UNIQLO were significantly reduced.

According to the market, the revenue of the xungang group in Japan was 463 billion 500 million yen, down 5.7%, and net profit increased 5.7% to 71 billion 600 million yen compared with the same period last year. It was mainly affected by warm winter. The sales of main products in winter clothing were not prosperous, and the same store sales fell 4.6%.

In the overseas market, the income in the same period decreased by 6.7% to 41 billion 200 million yen compared with the same period last year, while net profit dropped 39.8% to 53 billion 200 million yen, which was mainly dragged down by the sharp decline in the performance of Korea and greater China.

Xun marketing group pointed out that although China's market business maintained strong sales in late January, but at the end of January, it was affected by the spread of the epidemic, and the income dropped sharply. During February, 395 stores closed and began to reopen in March. As of now, UNIQLO has about 750 stores in China, and China has become the second largest market after Japan.

As of mid March, XXX group was temporarily closed in 223 stores in Singapore, Thailand and Philippines, and 181 shops in Europe and the United States. About 404 stores were temporarily closed. To this end, Xun group decided to reduce the annual comprehensive performance forecast, net profit is expected to substantially reduce 38.5% to 100 billion yen, compared with the previous forecast by 65 billion yen.

Yu Xuhui, an analyst with Changjiang Securities, said that since the outbreak of the epidemic, the factors such as the lower shop opening rate, the reduced flow of people and the Limited Logistics in some cities have had a significant impact on clothing retailing. In the 1-2 month of 2020, retail sales of clothing, shoes and hats and needles and textiles increased by 30.9% compared with the same period last year. In the same period, the online retail sales of physical goods increased by 3% over the same period last year, accounting for an increase of 0.8pct to 21.5% compared with 2019, with a 18.1% decline in clothing sales and a significant decline in garment retail growth. The domestic epidemic has a great impact on retail sales. Since March, domestic brand opening and international brand management guidelines have shown that domestic retail has recovered rapidly, but apparel retail sales are still slowing down in the first quarter of the year.

First textile network reporter learned here that XXX group plans to add 2 new stores in Japan in the second half of the year, and 118 new stores are expected to open in other parts of Asia and Oceania. The industry believes that the short-term epidemic will not change the long-term sales strategy of XXX group.