Retail in Asia

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Fast Retailing posts 20 percent growth on strong Uniqlo sales, scales back China retail rollout

Japan’s Fast Retailing said net profit for the 12 months ended August 31 grew by 8.4 percent, for a total of JPY 296.2 billion yen (USD 2 billion), on the back of double-digit sales growth globally.

SEE ALSO: Fast Retailing lifts guidance on recovering China

The owner of fashion brand Uniqlo said yearly operating profit surged 28.2 percent on the year, coming in at JPY 381 billion yen, with annual sales totalling JPY 2.77 trillion, representing year-on-year growth of 20.2 percent.

Uniqlo’s international division reported strong growth in both sales and operating profit, with revenue surging 28.5 percent to JPY 1.44 trillion, representing over half of the group’s total sales for the 12-month period.

Uniqlo Greater China sales rose by 15.2 percent to JPY 620.2 billion, and the South Korea, Southeast Asia, India and Australia segment saw sales growth of 46.1 percent, to reach JPY 449.8 billion.

In its native Japan, the Tokyo-based Fast Retailing said Uniqlo domestic sales were up by 9.9 percent to JPY 890.4 billion.

In discussing the earnings, Fast Retailing chief financial officer Takeshi Okazaki told reporters his company now plans to open 80 new Uniqlo stores a year in Greater China, which includes Hong Kong and Taiwan, as well as 20 stores in North America, and 10 in Europe.

The company, which owns Uniqlo, GU, Theory, and J Brand, among others, already has 930 Uniqlo outlets in mainland China. The company previously targeted 100 new store openings annually in Greater China, according to a Reuters report.

CEO and founder Tadashi Yanai told reporters that the post-Covid world has changed dramatically and consumers are now putting greater emphasis on value over luxury.