Follow us

Menu
PARTNER WITH USFREE NEWSLETTER
VISIT TheIndustry.beauty

Fast Retailing reports rise in revenue and profits driven by Uniqlo International performance

Camilla Rydzek
19 April 2022

Fast Retailing, the Japanese parent company of Uniqlo, has reported a 1.3% increase in revenue to £7.3 billion (1.2 trillion yen ) and a "large rise" in profits of 12.7%, reaching to £1.1 billion (189.2 billion yen) in the first half of fiscal 2022.

The company attributes the results to the strong performance of Uniqlo International, especially in the South Asia, Southeast Asia & Oceania, North America, and Europe regions. This was balanced by Uniqlo operations in Japan and Greater China declining, and a dip in sales of its GU brand.

In the six months to 28 February 2022 Fast Retailing reported the following results.

Uniqlo International:

  • Revenues rise to £3.6 billion (593.2 billion yen), a 13.7% year-on-year growth.
  • Operating profits rising to £600 million (100.3 billion yen), marking a 49.7% year-on-year growth.

The group said that for Uniqlo International operating profit generated by the North America and Europe regions constituted approximately 20% of the total. This year Fast Retailing announced that it would accelerate the opening of new stores in all its markets and flagships in the world's major cities.

The company faced a backlash in early March when it announced that it would not cease trading in Russia following its large-scale military invasion of Ukraine. It later u-turned its decision and has now announced that due to the "temporary closure" of operations it predicts UNIQLO Russia to report a loss in the second half of fiscal 2022.

Uniqlo Japan:

  • Revenues fall by 10.2% to £2.6 billion (442.5 billion yen).
  • Operating profits fall by 17.3% to £483.5 million (80.9 billion yen).

The retailer explained that the dip in sales was because it was being compared to a period last year that benefitted from strong sales of loungewear collections and its AIRism masks, combined with a lost sales opportunity of its Winter range.

Fast Retailing's GU brand has also seen revenues and profits declines and were impacted by delays in production and distribution that prevented strong-selling items to arrive in store in a timely manner and resulted in lost sales opportunities.

Global Brands (including New York brand Theory and France-based Comptoir des Cotonniers)

  • 8.1% year-on-year rise in revenues to £352.5 million (58.9 billion yen)
  • Operating profit of £6 million (1 billion yen), compared to an £48.5 million (8.1 billion yen) loss recorded in the first half of fiscal 2021.

The company added that it was focusing on expanding its e-commerce operations and working to combine the strengths of its physical store and e-commerce network to improve customer service.

The group did not make any changes to the estimates for full-year revenue and operating profit that it announced in January 2022.

Free NewsletterVISIT TheIndustry.beauty
cross