APAC boosts Uniqlo’s Q3
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Fast Retailing, Uniqlo’s parent company, has reported consolidated revenue totaled ¥1.4779 trillion (+3.0 per cent year on year), with operating profit expanding to ¥180.6 billion (+23.9 per cent) in its latest financial results.
In the third quarter from March to May, Uniqlo Southeast Asia and Oceania and South Korea reported a doubling in operating profit.
The apparel chain said that its sports goods, new women’s blouses, dresses and clothes designed to “suit the Southeast Asian climate and culture sold especially well.”
In the US, Uniqlo reported a lower operating loss in the third quarter after same-store sales recovered, with business cost ratios improving under a new operational structure.
In Europe, investment in 10 new store openings over three months inflated costs and knocked operating profit slightly lower.
Uniqlo’s international network increased by 143 to 1,071 stores at the end of May.
Japan reported a rise in revenue but a contraction in profit in the nine months to May 2017. Revenue rose 1.2 per cent year-on-year to ¥653.4 billion while operating profit dipped 0.6 per cent year-on-year to ¥92.6 billion.
The global chain said it expects to achieve strong revenue and profit gains, “with Greater China, Southeast Asia, and South Korea acting as the key drivers of growth.”
Questions & Answers
Q.Which specific product categories contributed to Uniqlo's strong performance in Southeast Asia?
Which specific product categories contributed to Uniqlo's strong performance in Southeast Asia?
Sports goods, new women’s blouses, dresses, and clothing designed for the Southeast Asian climate and culture sold particularly well in the region, contributing to the doubling of operating profit.
Q.What led to the reduced operating loss for Uniqlo in the US market?
What led to the reduced operating loss for Uniqlo in the US market?
The US market saw a lower operating loss due to a recovery in same-store sales. Business cost ratios also improved following the implementation of a new operational structure.
Q.Why did Uniqlo's operating profit decline slightly in Europe?
Why did Uniqlo's operating profit decline slightly in Europe?
Operating profit in Europe was slightly lower because of increased costs. This was attributed to significant investment in opening 10 new stores across the region over a three-month period.
Q.How did Uniqlo's performance in Japan compare to its international markets?
How did Uniqlo's performance in Japan compare to its international markets?
In the nine months to May 2017, Japan reported a rise in revenue but a contraction in operating profit. This contrasts with gains seen in many international regions.
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