Core tip: Overseas profit growth is outstanding. The operating profit of overseas Uniqlo business increased significantly by 65%, reaching 112.4 billion yen. Accounting for 46% of the overall profit, approaching 50% in Japan, overseas and domestic operating profits may reverse in the future. Japan’s Fast Retailing, which operates the clothing brand “Uniqlo”, has performed well. According to a report by Nihon Keizai Shimbun on July 16, the company’s recently released financial report (International Accounting Standards) from September 2017 to May 2018 showed that net profit increased by 23% year-on-year to 148.3 billion yen, the first A new high in 3 years. Focusing on the Chinese market, summer clothing is selling like hot cakes. The overseas sales of the main Uniqlo business (716 billion yen) exceed the domestic sales in Japan (704.4 billion yen).
At the financial report conference held on the same day, Fast Retailing Chief Financial Officer (CFO) Takeshi Okazaki said, “We benefit the most from the economic growth in Asia. If the Asian economy continues to grow, we are expected to become the number one in the world.”
Sales revenue increased by 15% year-on-year to 1,704.1 billion yen, and operating profit increased by 32% year-on-year to 238.8 billion yen. Sales of spring and summer clothing such as T-shirt brand “UT” increased.
Overseas profit growth is outstanding. The operating profit of overseas Uniqlo business increased significantly by 65%, reaching 112.4 billion yen. Accounting for 46% of the overall profit, approaching 50% in Japan, overseas and domestic operating profits may reverse in the future.
The profitability of Japan’s domestic business has also improved. By controlling discount sales and sales management fees, Uniqlo’s business improved its profitability, and its sales operating profit margin increased by 3 percentage points to 17%. Existing store sales increased 8%. Online sales also increased significantly by 33% from March to May to 16.4 billion yen. Accounting for 8% of overall sales, driving up earnings.
On the one hand, what is worrying in the future is the Chinese market, which is the engine of growth. China is not only the largest consumer market, but also the largest production base with factories. (Title: Summer clothing is hot-selling, UNIQLO’s parent company’s overseas sales surpass Japan)
