Fast Retailing, parent company of Uniqlo, has reported its latest financial results for the quarter ended 30 November 2020, with sales in China mitigating the hit from store closures elsewhere during the Coronavirus pandemic.
Fast Retailing reported operating profits were up 23.3% to £796 million, with year-on-year revenue declining 0.6% to £4.36 billion.
Operating profit at Uniqlo International (separate from Uniqlo Japan) rose 9.5% year on year in the three months period, with a very strong performance in Greater China.
Total international revenues at the business company however declined by 7.2% to £1.83 billion, which it attributed to “the harsher-than-expected impact of COVID-19 during the quarter”
Uniqlo Greater China reported higher revenue and a large profit gain on the back of strong performances in Mainland China and Taiwan. While Uniqlo South Korea’s revenue declined, improvements in the gross profit margin helped the operation return a profit.
According to reports, Uniqlo Europe was tracking a recovery and recording sales on a par with the previous year through October 2020. The temporary closure of stores in the UK and rest of Europe in November however resulted in a considerable decline in both revenue and profit for the first quarter as a whole.
Meanwhile, Uniqlo Japan’s revenues were up 8.9% to £1.78 billion, with operating profit increasing 55.8% to £423 million.