Uniqlo saw profits dip in its latest third quarter results, as the brand’s owner reported a worldwide shift to consumers purchasing lighter layers of clothes to manage longer, hotter summers.
The Japanese fashion giant’s profit fell 9.7% to £530m (¥105.5bn) in the three months ended in May, despite sales rising 7.7% to ¥826bn.
The results kept it on track to hit its highest performing year, with forecast net profits of £2.06bn (¥410bn), marking a 10% rise over the 2024 fiscal year.
Parent company Fast Retailing noted that shoppers were moving their purchases of summer clothes forward while amid unusually early heatwaves hitting Europe, the US and Asia.
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The brand has responded by holding larger stocks of year-round clothing. It has also been developing specific clothing ranges which incorporate cooling fabric, and lightweight garments designed to protect shoppers from UV rays.
Speaking on an earnings call, Fast Retailing chief financial officer Takeshi Okazaki said: “Demand for summer items is rapidly increasing — core T-shirts, UV-related products, bra tops, AIRism inner layers.
“Demand for layering items have become quite high. This trend seems to be global.”
In April, Fast Retailing raised its forecast for the third consecutive year of record profits, which it said was buoyed by strong sales both in its domestic market and key international regions.
However, the retailer warned that it continued to face challenges in its largest overseas market, China.
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