Uniqlo’s full-year profits hit by euro slump

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Uniqlo's full-year profits

Uniqlo’s full-year profits in Europe took a sudden turn last year, dropping down to a pre-tax loss of €1.86 million (£1.63 million) in the year to August 31 compared to a €2.5 million (£2.2 million) profit in the previous fiscal year.

In addition, documents filed at Companies House indicate that Uniqlo’s operating loss stood at €1.02 million (£898,000), compared to €3.07 million (£2.7 million) profit in the 2015 year.

READ MORE: Uniqlo owner posts 80% profit jump

The Japanese fashion retailer — which operates 10 stores in the UK and also has stores in France and Germany — said this was impacted by investment in its expansion plan and the weakening euro against the dollar which hampered its bottom line.

However, once taking out the impact of exchange rates and the revaluation of assets and liabilities that are not denominated in euros, Uniqlo’s adjusted operating profit stood at €4.3 million (£3.78 million).

The retailer also said sales spiked by 26 per cent to €347 million (£305.88 million) thanks to new store openings and ecommerce growth.

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