Uniqlo’s owner grows by 4.4% in the first quarter, but shrinks its profit by 5.2%

Fast Retailing, at double speed. Uniqlo’s parent company closed the first quarter of the fiscal year (finished on the 30 November) with an increase of 4.4% in its revenue. However, the earnings of the group reduced by 5.2%.

Specifically, the Japanese company registered a revenue of 644.4 billion yen (5.1 billion euros) between September and November. Uniqlo’s owner’s net profit stood in 80.2 billion yen (643 million euros) in the first quarter of the fiscal year, facing the 84.6 billion yen (678 million euros) from the same period in 2017.

By regions, the group grew in the international markets where it operates, while in its local market, Japan, had the opposite evolution. Between September and November, Uniqlo registered earnings of 257 billion yen (2 billion euros) in Japan, 4.3% less. The operating profit in the country, though, plummeted by 29.9% in the period, to 37.9 billion yen (303 million euros).

Uniqlo registered a bigger growth in the international markets where it operates than in Japan

In the rest of the markets where the group is present, the revenue grew by 12.8%, reaching 291.3 billion yen (2.3 billion euros). The operating profit of the group in international markets shoot up by 12.6%, until 52 billion yen (416 million euros).

By regions, China was the country where the Japanese chain grew the most, with a two-digit rise, as the company states. In South Korea, on the other hand, Uniqlo explained that sales growth was due to the implementation of advancements such as RFID. In South East Asia and Oceania, the group increased its earnings mainly thanks to the sales in physical stores. In this period, the company opened in Manila its largest flagship store in the region, as well as a new store in the Philippines last October.

The company raised its bet on Europe in the last quarter with the announcement of new openings

In the United States, the revenue of the group grew boosted by both its sales in physical stores and the online channel. In Europe, Uniqlo has also registered strong growth in the whole region, especially Russia, according to what the company explains. During the last months, Fast Retailing opened a store in The Netherlands and announced its entrance to Demark and Milan this year.

The GU chain raised its sales by 7.7%, up to 65.4 billion yen (524 million euros), whereas the division of Global Brands (that includes Princesse Tam Tam and Comptoir de Cotonniers, among others), grew by 1.8%, until 40.7 billion yen (326 million euros). The company explained that, while Theory lifted both its sale and its profit, Comptoir de Cotonniers reduced its result.