Japanese retailer Fast Retailing, owner of the Uniqlo brand, has today (6 July) cut its full-year operating profit outlook as sales at its Uniqlo Japan division fell 1%.
Operating income for Uniqlo Japan was down 1.2% to JPY20.4bn (US$256.1bn) for the three months to the end of May. Sales declined 1% year-on-year to JPY138.6bn, while same-store sales fell 5.4% year-on-year. The company said this was mainly because of its strong focus on spring inventory, which detracted sales of inter-season garments, coupled with cooler weather dampening sales of summer clothing.
As a result, the Japanese retail giant has reduced its operating income forecast for Uniqlo Japan by 1.6% to JPY104.5bn.
However, sales for Uniqlo International reached JPY37.7bn, up 61.1% year-on-year, while operating income increased 19.8% to JPY2.1bn. For the global brands division, net sales increased 33.8% to JPY41bn for the three months, while operating income reached JPY5.5bn, surging 97.2%.
Overall, net income for the three months to the end of May grew 25.5% year-on-year to JPY14.7bn. Operating income reached JPY27.5bn, up 22.5% year-on-year, while sales jumped 12% to JPY218bn.
For the nine months to the end of May, net income reached JPY72.5bn. Operating income jumped 14.1% to JPY119.3bn, while sales were up 14% to JPY43.5bn.