UNIQLO’s parent company, Fast Retailing, said Thursday that it expects full-year operating profit to recover significantly due to strong performance in East Asian countries, where the virus blockade has been less damaging.
The Japanese clothing empire forecasts operating profit of JPY 255 billion ($ 2.3 billion) in 2020/21, a slight increase from the previous estimate of JPY 245 billion.
This is an increase of 70.7 percent over the previous year when businesses began to be hit around the world by the Covid-19 pandemic, which forced many stores to close for long periods of time.
In FAST RETAILING, sales in the first half of the current fiscal year decreased 0.5% year-on-year to 1,202.8 billion yen.
However, operating income for the same period was 167.9 billion yen, up 22.9% from 2019/20.
“Performance within most UNIQLO international regions and global brands reported a decline in revenue and profits due to the severe impact of Covid-19,” the company said in a statement.
“However, the significant increase in profits in UNIQLO Japan and UNIQLO Greater China, where the impact of the pandemic was limited, contributed to the increase in consolidated group profits,” he said.
After years of aggressive expansion, Fast Retailing aims to become the world’s most valuable clothing company, competing for the top spot with Zara-owning Spanish fast fashion giant Inditex. I am.
Earlier this year, the Japan Group’s market capitalization exceeded Inditex’s market capitalization for the first time, but has fallen behind since then.
FAST RETAILING plans to continue opening new stores on Thursday, with 2,337 UNIQLO stores worldwide by the end of August, of which 813 are in Japan.
The group also owns fashion retailer Theory and French brands Comptoir des Cotonniers and Princesse Tam Tam.
Uniqlo Operator Fast Retailing Raises Profit Outlook Source link Uniqlo Operator Fast Retailing Raises Profit Outlook