Fast Retailing, the parent company of Uniqlo, said on Wednesday that driven by sales in South Asia, North America and Europe, the company’s operating profit in the first quarter of 2022 far exceeded expectations, a year-on-year increase of 5.6%. In the three months ended November 30, 2021, the company’s profit increased to 119.4 billion yen ($1.04 billion), according to Refinitiv analysts’ average forecast, and the market consensus was 102.6 billion yen.
The main brand Uniqlo’s business revenue and profits in South Asia, Southeast Asia and Oceania, North America and Europe have increased significantly with strong performance, while business revenue and profits in Japan and Greater China have declined.
Among them, Uniqlo’s local market Japan revenue was 226.4 billion yen, a year-on-year decrease of 10.8%, and profit was 48.7 billion yen, a year-on-year decrease of 18.8%. Same-store sales in the first quarter fell 7.7% compared with the same period last year and continued to decline. The announcement stated that the warm weather in mid-October suppressed sales of the autumn and winter series.
Uniqlo’s international revenue was 299.7 billion yen, a year-on-year increase of 15.0%, and operating profit reached 59.9 billion yen, a year-on-year increase of 44.6%. Revenue and profit growth in South Asia, Southeast Asia and Oceania, North America and Europe provided support for the substantial growth in total revenue.
Meanwhile, revenue in Greater China fell slightly in the first quarter and profits fell sharply. Fast Retailing said Uniqlo International’s growth was driven by the diversification of revenue pillars.
In fiscal year 2022, Fast Retailing has maintained its previous preliminary estimate of business performance, with revenue expected to reach 2.200 trillion yen and profit of 270 billion yen, a year-on-year increase of 8.4%.
In addition, Fast Retailing Group is currently building advanced warehouses in major markets around the world that can automate product sorting and incoming and outgoing goods. Following Japan, the first automated warehouses have recently been built in the United States, Europe, and Australia.
And it is expected that such a warehouse will be launched in China within the 2022 fiscal year (as of August 2022). The total investment amount is 100 billion yen. China’s automated warehouses are located in the suburbs of Shanghai and will cover large urban areas in coastal areas.
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