UNIQLO Sales Fell 27.8% In March, And Mainland China Is Now Showing Signs Of Recovery.

The fast selling group of Japan's fast fashion giant, UNIQLO, released its latest financial report in April 9th. Sales in the first half of fiscal year 2020 fell 4.7% to 1 trillion and 210 billion yen, and operating profit dropped 20.9% to 136 billion 700 million yen.

Xun group predicts that the new crown will lead to a 43.7% decline in operating profit in the fiscal year to 145 billion yen, compared with 260 billion yen in the same period last year. In addition, the group is expected to reduce its dividend from 500 yen per share to 480 yen.

Affected by the epidemic, the brand of UNIQLO of the Xun marketing group recently closed about 170 stores in the Japanese domestic market. But fortunately, most of the previously closed mainland stores in China have been reopened. On Thursday, Xun marketing group said that the mainland China market has shown signs of recovery.

In January this year, xungang group had cut its full year profit forecast for the financial year because of its poor performance in the first quarter of 2019/2020.

It is reported that as of February 29th, the key financial data in the first half of the 2020 fiscal year of XXX group were as follows: sales fell by 4.7% to 1 trillion and 210 billion yen compared with the same period last year; operating profit decreased by 20.9% to 136 billion 700 million yen; pre tax profits fell 13.4% to 150 billion 800 million yen compared with the same period last year; net profit fell 11.9% to 100 billion 400 million yuan.

UNIQLO brand:

2020 sales in the domestic market in the first half of fiscal year fell 5.7% to 463 billion 500 million yen, operating profit increased 5.7% to 71 billion 600 million yen, while same store sales decreased by 4.6% compared to the same period last year, mainly due to the warm weather which weakened the demand for winter clothing. In March, the same store sales fell by 27.8% over the same period.

2020 in the first half of fiscal year, the sales volume of overseas international market decreased by 6.7% to 541 billion 200 million yen, and operating profit dropped 39.8% to 53 billion 200 million yen compared with the same period last year.

From the regional market, sales in the Greater China market declined and operating profits fell sharply. At the end of January, the epidemic brand closed some stores in mainland China, so the same store sales were strong before the end of January, but then fell sharply. In February, UNIQLO temporarily closed 395 stores in mainland China, resulting in a nearly 80% decline in same store sales in February.

South Korean market, same store sales fell sharply, operating losses expanded beyond expectations, mainly affected by Japan and South Korea tensions and epidemic.

In Southeast Asia and the Pacific market, although Singapore, Malaysia and Thailand were affected by the epidemic, sales continued to achieve two digit growth, operating profit growth, India's first store performance was strong, and third stores were opened in New Delhi in February.

In North America, the US market suffered operating losses, and the warm weather affected the sales of winter clothing in the area. Sales and operating profits in Canada both increased.

In Europe, sales grew by two digits, mainly due to strong demand in Italy and Spain.

Other brands:

GU sales and profits grew, with sales rising 12.9% to 132 billion 200 million yen, and operating profit increased 12% to 15 billion 800 million yen. Fashion items such as knitted jackets and light coats are not only suitable for public taste but also for the needs of warm weather.

Global Brands sales fell 9.8% to 70 billion 100 million yen compared with the same period last year, operating profit fell 76.31% to 700 million yen (3 billion 100 million yen last year).

XXX group has forecast the situation in the second half of fiscal year 2020. It is expected that Japan's local sales and profits will decline, the sales and profits of the international market will drop sharply, GU sales will drop slightly, business profits will go down, Global Brands profits will decline and operating losses will appear.

The fast forward group's forecast for the 2020 fiscal year ending August 31, 2020 is: operating profit fell 43.7% to 145 billion yen compared to the same period last year, 260 billion yen last year, and sales fell 8.8% to 2 trillion and 90 billion yen, up 2 trillion and 300 billion yen from the same period last year. Net profit fell 38.5% to 100 billion yen, up from 165 billion yen in the same period last year.

In March 26th, XXX announced that it had deployed 10 million medical masks to cooperate with Chinese factories. It will be sent from Japan to the medical institutions at home and abroad in accordance with the priority level.

In addition, in March, Xun marketing group also announced that it is expected to open three large new concept stores in UNIQLO in Tokyo capital circle in 4~5 this year. The group hopes to rely on large stores to further strengthen the brand's influence, and will further introduce such new stores in Japan in the future, aiming to boost the sluggish local market.