The operating profit of Japanese fashion brand Uniqlo’s parent company, Fast Retailing, recovered quarterly to an all-time high.
A notice posted at the Uniqlo Gangnam branch in Seoul, which is about to close. yunhap news
According to Bloomberg News, on the 14th, Fast Retailing announced that its operating profit in the first quarter of fiscal 2021 (from September to November of last year) increased by 23.3% from the same period of the previous year (91.6 billion yen) to about 1131 billion yen (about 1,191.9 billion yen).
Fast Retailing’s performance exceeded the market forecast of 101.5 billion yen.
Bloomberg Telecom’s quarterly operating profit recorded 113.9 billion yen two years ago, the second highest performance ever since.
However, total sales amounted to 6197 billion yen, down 0.6% from 6234 billion yen last year.
Fast Retailing explained the background of the increase in operating profit, saying, “It has gained great profits in Japan and Greater China (China, Hong Kong, Taiwan), and another fashion brand, Jiyu (GU), also made results.”
Takeshi Okazaki, Chief Financial Officer of Pastry Retailing, said he worked with renowned designer Jill Sander to strengthen marketing.
By brand, the operating profit of’UNIQLO Japan’ was the highest at 60 billion yen, which was 55.8% higher than the same period last year.
The operating profit of Uniqlo International, which covers Korea and China, also increased by 9.5% from last year to 41.4 billion yen.
In particular, regarding UNIQLO Korea, he explained, “Sales fell sharply, but it turned into a surplus as sales and management expenses and gross margin improved, closed branches that did not produce profits, strengthened expenditure controls.”
Although the results exceeded the market forecast, Fast Retailing decided to maintain the forecast for fiscal year 2021, “total sales of 2.2 trillion yen and operating profit of 245 billion yen,” taking into account the Corona 19 situation.
Reporter Shin Hyeyeon [email protected]