The Japanese retail group Fast Retailing Co. Ltd. closed the first quarter of the 2021/22 financial year with a small increase in sales and increased its profit significantly. The parent company of the clothing chain Uniqlo announced on Thursday that weaker demand in China and Japan was more than offset by growth in the other markets. In view of the available figures, which were above its own expectations, the group stuck to its annual forecasts.
In the months of September to November, Fast Retailing generated sales of 627.3 billion Japanese yen (4.82 billion euros). Compared to the same quarter of the previous year, this means an increase of 1.2 percent. On the home market, however, the group had to contend with difficulties: sales in the Uniqlo Japan division fell by 10.8 percent to 226.4 billion Japanese yen. The company explained that the unusually mild weather until mid-October dampened demand for autumn/winter goods.
Despite problems in China and Japan, quarterly sales are above the previous year’s level
The Uniqlo International segment, on the other hand, achieved significant growth. Its revenue rose 15.0 percent year-on-year to 299.7 billion Japanese yen. While sales in China declined slightly, the retail chain made strong gains in other South and Southeast Asian markets, as well as in Europe and North America.
Sales of group brand GU shrank 8.7 percent to 69.8 billion Japanese yen, while total sales of smaller labels, which include Comptoir des Cotonniers, Princesse Tam Tam and Theory, amounted to 30.7 billion Japanese yen and exceeded the corresponding level of the previous year by 9.5 percent.
The Japanese retail group confirms its annual forecasts
While profits at Uniqlo in Japan and China and in the GU division fell, significant increases in the other segments ensured that Fast Retailing was able to improve its consolidated profit. The group’s operating profit grew by 5.6 percent to 119.4 billion Japanese yen. Net income attributable to shareholders reached 93.5 billion Japanese yen (718.1 million euros), up 33.0 percent year-on-year.
After the solid results in the first quarter, the group confirmed its annual forecasts for 2021/22. So he still expects to increase his sales by 3.1 percent to 2.20 trillion Japanese yen. Net profit attributable to shareholders is expected to grow 3.0 percent year-on-year to reach 175 billion Japanese yen. However, the company acknowledged that it is difficult to predict the future situation due to the further global development of the Covid-19 pandemic.