UNIQLO's First Three Quarter Earnings Continue To Be Strong In The Big China Region

In the first three quarters of 2019, UNIQLO achieved a record high in total consolidated income, operating profit, income tax profit and parent company's profit.

In July 11th, UNIQLO UNIQLO parent sales group announced the results of the first three quarters of fiscal year 2019 (September 1, 2018 to May 31, 2018).

During the period, the total revenue in the first three quarters of the fast selling market amounted to 18228 billion yen (equivalent to RMB 115 billion 708 million yuan), an increase of 7% over the same period last year, with a profit margin of 247 billion 600 million yen, an increase of 3.7% over the same period last year, resulting in a double increase in earnings and profits. During the period, the total profit before tax was recorded at 247 billion 200 million yen, an increase of 4.1% compared with the same period last year. The profit attributable to the parent company was 158 billion 600 million yen, up 7% over the same period last year.

According to reports, XXX group's consolidated earnings and operating profits both recorded growth. In various undertakings, Japan's UNIQLO earnings and profits have declined to varying degrees; overseas UNIQLO has achieved double growth in profits and profits; GU business has recorded double gains in profits and profits; the global brand division has lost revenue and profits growth, and the extent of its losses has eased.

UNIQLO brand, Japan's UNIQLO accumulated the first three quarter earnings of 701 billion yen, down 0.5% compared to the same period last year, operating profit of 96 billion 700 million yen, down 19.5% compared to the same period, mainly due to the impact of warm winter, resulting in a discount rate expansion. In the third quarter, the net sales of the same store, including online stores, dropped by 0.1% compared to the same period last year, resulting in a 0.5% year-on-year decline in revenue. In the third quarter, UNIQLO introduced Japan's clothing series, anti UV series, tight pants, T-shirts and other commodities, although it maintained a strong sales. However, the date of holding the "UNIQLO birth Thanksgiving Day" was postponed to June, resulting in a decline in net sales in the same store in May.

Compared to the relative weakness of UNIQLO in Japan, the overseas UNIQLO market was strong, with a cumulative gain of 820 billion 500 million yen in the first three quarters, up 14.6% over the same period last year, and operating profit of 124 billion 800 million yen, up 11.1% over the same period last year, resulting in a double rise in profits and gains. In the third quarter, earnings and operating profits increased by 15.3 and 14.9% respectively in the single quarter.

In the overseas market, the Greater China region has always been strong, especially in the Chinese mainland market, which has increased by more than 20%. Other Southeast Asia, Oceania and Russia all recorded gains in both profits and profits.

Thus, UNIQLO's total revenue in the first three quarters of the global market was 15215 billion yen (equivalent to RMB 96 billion 580 million yuan), which accounted for over 80% of the total sales of the XXX group, which is still the most profitable clothing brand of XXX group.

GU, another big brand of fast selling, gained 185 billion 300 million yen in the first three quarters, up 11.2% compared with the same period last year, and its operating profit rose sharply to 26 billion 300 million yen, up 74.5% over the same period last year. In the third quarter, the single quarter revenue increased by 12.1% compared to the previous year, and operating profit increased by 105.8% over the same period. This is mainly due to the fact that in the third quarter, GU continuously selected the number of commodities in spring and summer, and focused on the commodity composition of the mainstream trend.

In addition, the global brand, the first three quarters of the cumulative gain of 113 billion 600 million yen, down 1% over the same period, operating profit of 4 billion 600 million yuan, showing a decline in earnings and profit growth.

Xun group said that the group's medium-term vision is to become the world's first apparel retailer as a "digital consumer retail enterprise". To achieve this goal, it has been committed to expand its e-commerce business in UNIQLO, GU and global markets. It is worth mentioning that at present, the overseas UNIQLO business, driven by the cause of Greater China and Southeast Asia, should enter the next stage of growth. During the reporting period, UNIQLO entered the Holland market for the first time in September 2018 and opened the Amsterdam store. In October 2018, the largest flagship store in Southeast Asia opened in Manila, Philippines. In April 2019, the first Danish store opened in Copenhagen.

At the same time, in addition to actively expanding the Japanese market, GU will actively expand the scale of international market business around the two central regions of Greater China and South Korea.