business

Uniqlo operator reports record annual operating profit

7 Comments

Japanese fashion group Fast Retailing Co Ltd on Thursday reported a record annual profit for a third consecutive year, helped by strong sales at its Uniqlo stores in China and strong performance of its cheaper line GU.

Operating profit climbed 9% to 257.6 billion yen ($2.40 billion) in the year ended Aug 31, mostly in line with market expectations, betraying limited impact from a slump in sales in South Korea amid a consumer boycott of Japanese goods.

The firm expects profit to rise 6.7% to 275.0 billion yen in the current business year, less than half the 15% growth forecast by analysts, according to Refinitiv data.

Fast Retailing's biggest growth market in recent years has been China, where it opened its first Uniqlo store in 2002 and now has over 700 locations.

Uniqlo's profit in greater China rose 21% to 89 billion yen, Fast Retailing said. The company has said it expects revenue in the region to grow to 1 trillion yen by fiscal 2022 from 502.5 billion yen last year.

Another strong point last year was Uniqlo's sister brand GU, where operating profit jumped 139% to 28 billion yen. The brand was previously dismissed by some analysts as too similar to Uniqlo, but has proved popular for its more affordable and trendy items such as oversized sweatshirts.

© (c) Copyright Thomson Reuters 2019.

©2019 GPlusMedia Inc.

7 Comments
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This also means that the SK boycott had very little impact in the overall Fast Retailing business showing how small SK business was in the first place.

4 ( +6 / -2 )

Not just Uniqulo, Japan should thank the heaven's for having China as a neighbor... a POWERFUL neighbor.

-2 ( +1 / -3 )

Not just Uniqulo, Japan should thank the heaven's for having China as a neighbor... a POWERFUL neighbor.

As much as I hate Abe, I applaud him for relaxing Visa regulations allowing tourist into Japan, the spending from tourist is what has kept the economy from tanking.

The visa regulation letting in blue-collar workers is a bad idea that will not help the econmy in the long term.

0 ( +0 / -0 )

Operating profit climbed 9% to 257.6 billion yen ($2.40 billion) in the year ended Aug 31, mostly in line with market expectations, betraying limited impact from a slump in sales in South Korea amid a consumer boycott of Japanese goods.

So even if Uniqlo South Korea's sales of 8% that contribute to Uniqlo's global sales disappeared overnight (because of some ferociously strict boycott), Fast Retailing would still show a 1% increase in operating profit.

Not even a razor sharp focused boycott in South Korea could harm Japanese businesses overall. Must be disheartening for them. Maybe they should think about treating Japan like a caring neighbour and respect agreements they have co-signed, rather than a hugely formidable boogeyman competitor?

2 ( +4 / -2 )

Japanese companies in Korea also have plants in other countries. What define the percentage of profit is what occurs in other countries.

0 ( +0 / -0 )

Interesting edit job. In the business press, they mentioned both India and China and others as well, but this piece only mentions China.

0 ( +0 / -0 )

"Japan should thank the heaven's for having China as a neighbor.."

LOL and all the hi tech companies in China are being funded by Japanese Money ie Allibaba and Tic tok just to name two.

-2 ( +0 / -2 )

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