// Uniqlo owner Fast Retailing posts 0.6% decline in revenue for the quarter ended November 30
// Operating profit was higher than expected, with a 23.3% growth
// International revenues dropped by 7.2% during the quarter
Uniqlo parent company Fast Retailing has recorded a 0.6 per cent decline in the group’s revenue for the quarter ended November 30, 2020.
The group achieved revenue of ¥619.7 billion (£4.31 billion), while net profit down by 0.7 per cent to ¥70.38 billion (£49 million) year-on-year.
However, a sharp rise in operating profit was seen higher than expected, with a 23.3 per cent growth to ¥113 billion (£79 billion) thanks to strong sales from Uniqlo’s operations in Japan and Greater China.
READ MORE: Uniqlo profits down 40% as Fast Retailing predicts bounce-back recovery
International revenues dropped 7.2 per cent during the quarter, as a result of regions in South East Asia, North America, and Europe still heavily being affected by the pandemic.
However, operating profits grew by 9.5 per cent in Mainland China and Taiwan.
Uniqlo reported strong online sales as ecommerce sales grew by 48.3 per cent, accounting for 14.5 per cent of total sales.
Its performance was due to stay-at-home behaviors, selling more loungewear alongside activewear.
“Consumers are now thinking of Uniqlo first when they need clothing, and that’s helped our revenue,” chief financial officer Takeshi Okazaki said.
Fast Retailing chief executive Tadashi Yanai said: “The spread of Covid-19 has spurred a change in values and encouraged us to scrutinize the way that we live.
“The meaning of clothes is also changing as we witness a strong shift away from clothes worn to beautify or emphasize the wearer’s social status to clothes designed to last and enhance comfortable everyday living.”
The group currently owns over 3600 stores in 26 markets spanning across Asia, North America, and Europe.
Fast Retailing expects Uniqlo’s revenues to drop the first half of the year, but still see an increase in operating profit.
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