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Uniqlo operator logs record annual net profit

(Reuters)
(Reuters)
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14 Oct 2022 01:10:21 GMT9
14 Oct 2022 01:10:21 GMT9

TOKYO: Fast Retailing Co., the operator of Uniqlo and other casual clothing stores, reported on Thursday a record group net profit of 273,335 million yen for the business year that ended in August, up 60.9 pct from the previous year.

Sales grew chiefly in Europe, Southeast Asia and the United States amid the waning coronavirus pandemic, The yen’s depreciation also inflated profits from there.

In Japan, shortages of hot-selling winter items pushed down the sales, but the company managed to secure profit growth thanks to reduced discounting.

On the other hand, its Chinese business suffered a profit drop stemming from Beijing’s “zero coronavirus” policy and its operations in Russia plunged into the red due to an impairment loss on the business suspension following the country’s invasion of Ukraine.

Group operating profit climbed 19.4 pct to a record 297,325 million yen, on all-time-high consolidated sales of 2,301,122 million yen, up 7.9 pct.

The company expects to post growth in both sales and operating profit for the current year.

Uniqlo stores raised price tags on its autumn and winter items. But Tadashi Yanai, head of Fast Retailing, said, “Sales have so far been brisk.” “Basic items that don’t need a discount will sell well next year,” he added.

Separately, Ryohin Keikaku Co., which runs the Muji brand clothing and lifestyle goods stores, said the same day that the yen’s weakening and higher transportation costs cut down its net profit by 27.6 pct to 24,558 million yen for the year that ended in August.

JIJI Press

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