Uniqlo owner Fast Retailing profits drop almost 50%

Fast Retailing Uniqlo covid-19
Uniqlo opened two key stores during the period
// Fast retailing total sales at its Uniqlo stores rose 26.2% in June
// The company saw “higher demand for summer ranges as the temperature rose”

Uniqlo owner Fast Retailing said its nine-month results have reflected the negative impact of the pandemic and its third quarter was worse than expected.

Total sales in June at its Uniqlo stores in Japan and its domestic website surged by 26.2 per cent.

The company saw “higher demand for summer ranges as the temperature rose above the previous year’s level from the beginning of the month”.

READ MORE: Coronavirus: Uniqlo owner commits to paying suppliers

Uniqlo opened two key stores during the period, with Uniqlo Harajuku opening on June 5 and its largest global flagship store in Japan, Uniqlo Tokyo, launching on June 19.

Both these new stores were designed specifically to enable customers to experience its LifeWear clothing concept and products.

Despite this, a total of six stores still remained temporarily closed at the end of June and 143 stores were operating shorter working hours due to the Covid-19 pandemic.

For the period to May 31, revenue fell 15.2 per cent to ¥1.545 trillion (£11.4 billion) after having risen seven per cent a year earlier.

Operating profit was down 46.6 per cent to ¥132.38 billion (£98 billion) and net profit fell 47.4 per cent to ¥91.4 billion (£68 billion).

Uniqlo sales during the third quarter fell 36 per cent and operating profit dove 74 per cent, with losses in all of its key international regions too.

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