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UNIQLO'S Global Performance Is Not Very Good.

2016/1/10 19:49:00 47

UNIQLOGlobal Performance

The Asia's largest clothing retailer expects that in the 2016 fiscal year (as of August 2016), the group's earnings and operating profits have been adjusted down by 100 billion yen (5 billion 570 million yuan) and 20 billion yen (about 1 billion 114 million yuan) respectively, compared with the original target.

The overall performance income is estimated at 1 trillion and 800 billion yen (about 100 billion 260 million yuan), an increase of 7% over the previous year, and the operating profit will reach 180 billion yen (about 10 billion 26 million yuan), an increase of 9.4% over the previous year.

Excluding the US business which has been losing all the time, it also led to the "abnormal warm winter climate in the northern hemisphere affecting the sales of UNIQLO and overseas UNIQLO".

According to the financial report, in the first quarter of 2016 fiscal year ending November 30, 2015, XXX group achieved a profit of 520 billion 300 million yen (about 28 billion 981 million yuan), an increase of 8.5% over the same period last year, but net profit fell by 30.2% to 48 billion 24 million yen (about 2 billion 670 million yuan) compared with the same period last year, and its operating profit dropped 16.9% to 75 billion 900 million yen (about 4 billion 228 million yuan).

UNIQLO is the main brand of fast selling group. In November, Japan's local revenue declined by 0.7% to 230 billion 900 million yen (12 billion 861 million yuan), while profits declined by 12.4% to 44 billion 800 million yen (about 2 billion 495 million yuan). By December, the situation deteriorated further, and the same store sales dropped to 11.9%, and revenue declined by 10.7%.

Continuous decline in the first quarter of 2016, the overall sales of UNIQLO Japan decreased by 2.3% year-on-year, which is far from the group expected to grow by 4%.

UNIQLO attributed the decline of its performance to "the abnormal increase of temperature in previous years, the suppression of demand for winter goods, and the same store sales revenue, resulting in a decline in earnings".

The same reason also led to a decline in UNIQLO's overseas market.

Although it benefited from the rapid expansion of stores, UNIQLO's overseas market was out of the fast lane of over 40% revenue growth in the four quarter of fiscal year 2015, and its revenue increased by 17.2% to 196 billion 900 million yen (10 billion 967 million yuan) over the previous year, but its profits decreased by 14.2% to 20 billion 800 million yen (about 1 billion 159 million yuan).

In the United States, UNIQLO pays attention to the style and prominence of basic funds.

Logo

The simple advertising style does not attract consumers who are accustomed to the large model posters, and the same store sales in the US continue to slide.

Even the Greater China region, which has always been the focus of publicity for the group.

Profit growth

It is also slowing down. In the latest quarterly earnings report, UNIQLO even gave no specific performance figures in the region.

UNIQLO only told the interface news that sales and profits of mainland China continued to grow in the first quarter.

China is already the most important thing in UNIQLO.

overseas market

In the 2015 fiscal year, UNIQLO maintained a high growth rate in the Greater China region. Its revenue grew by 46.3% to 304 billion 400 million yen (16 billion 955 million yuan) over the same period last year, accounting for half of the total revenue from overseas markets, and operating profit increased by 66.1%, reaching 38 billion 600 million yuan (about 2 billion 150 million yuan).

But this growth is now being challenged.

If we do not stop this trend as soon as possible, this company will be far away from its goal of achieving 5 trillion yen in 2020, exceeding Zara parent Inditex SA (ITX.MC) and H&M parent Hennes Mauritz AB (HMb.ST) as the world's largest apparel manufacturer and retailer.

As one of the countermeasures, XXX has decided to launch the spring series ahead of time and introduce more products that are not sensitive to weather to make up for the current weakness.


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