The Fast Retailing Group’s revenue and profit both increased in the first quarter of fiscal 2022 with consolidated revenue totalling 627.3 billion yen, up 1.2 percent and operating profit reaching 119.4 billion yen, up 5.6 percent.
The company has attributed this strong performance to large increases in both revenue and profit at Uniqlo operations in South Asia, Southeast Asia & Oceania (Southeast Asia, Australia, and India), North America, and Europe.
Meanwhile, the group’s Uniqlo operations in Japan and the Greater China region (Mainland China market, Hong Kong market, and Taiwan market) and our GU business segments reported declines in the first quarter revenue and profit.
First-quarter pre-tax profit rose to 134.2 billion yen, up 25.2 percent and profit attributable to owners of the parent increased to 93.5 billion yen, up 33 percent
Uniqlo Japan posts drop in Q1 sales and profit
Uniqlo Japan reported significant declines in revenue and profit in the first quarter of fiscal 2022, with revenue totaling 226.4 billion yen, down 10.8 percent and operating profit totaling 48.7 billion yen, down 18.8 percent. First-quarter same-store sales declined by 7.7% year-on-year.
This performance, the company added, was being compared to a strong result in the previous year when stay-at-home demand and sales of Airism masks were particularly buoyant. In addition, the large number of persistently warm days from September through to the middle of October stifled sales of fall winter ranges. Sales of outerwear and thermal innerwear did strengthen once the weather turned colder from the middle of October and sales exceeded previous year levels during the Uniqlo anniversary sale in November.
Ecommerce sales declined 0.2 percent with online sales totaling 36.6 billion yen, however, this figure represented an approximate 50 percent increase compared to the first quarter of fiscal 2020, so ecommerce is still trending on a favorable expansion track. Uniqlo Japan’s gross profit margin improved by 0.5 point.
Uniqlo international sees improved sales and profit
Uniqlo’s international segment reported revenue increase to 299.7 billion yen, up 15 percent and operating profit expanding to 59.9 billion yen, up 44.6 percent year-on-year. This was fueled primarily by strong sales and large increases in both revenue and profit at Uniqlo operations in the S/SE Asia & Oceania, North America, and Europe regions. Meanwhile, first-quarter revenue declined marginally and first-quarter profit declined significantly for the Greater China region.
The Hong Kong and Taiwan markets generated significant increases in both revenue and profit and Uniqlo South Korea reported a rise in both revenue and profit. S/SE Asia & Oceania reported higher revenue and profit as the region recovered the level of performance it had enjoyed two years ago prior to Covid-19. Uniqlo USA generated a rise in revenue and moved into the black in the first quarter. Uniqlo Europe also achieved increases in both revenue and profit as falling temperatures and a rising consumer appetite for shopping created a buoyant sales environment.
GU business segment posts decline in sales and profit
The GU business segment reported a decline in revenue and a considerable contraction in profit in the first quarter, with revenue falling to 69.8 billion yen, down 8.7 percent and operating profit contracting to 8.9 billion yen, down 34.5 percent. The company added that persistently warm weather stifled sales of fall winter items and delays in production and distribution also delayed the launch of winter ranges. GU’s gross profit margin declined by 1.7 points.
The Global Brands segment reported a rise in revenue and a move back into the black in the first quarter of fiscal 2022. The segment generated revenue of 30.7 billion yen, up 9.5 percent and an operating profit of 2.5 billion yen compared to a 0.2 billion yen loss recorded in the first quarter of fiscal 2021.
Theory operation generated strong increases in both revenue and profit, thanks primarily to a recovery in performance and a move back into the black for Theory in the United States.
PLST reported a decline in both revenue and profit as that operation struggled to attract customers during the Covid-19-related state of emergency in Japan. The company’s France-based Comptoir des Cotonniers operation reported higher revenue and a move back into the black after it was able to avoid temporarily closing any stores due to Covid-19.