The "fast fashion" brand, once a strong trend, is bidding farewell to the era of rapid growth. After years of rapid growth, the performance of the fast fashion group of Japan's fast fashion giant, the fast selling group, has slowed sharply. Its latest 2019 fiscal year data show that both revenue and net profit growth have dropped to single digits. While the performance of the Greater China region continues to advance rapidly, UNIQLO is showing signs of weakness in the Japanese domestic market, operating profit has declined by 13.9%, while in the Korean market, due to the boycott of Japanese goods caused by trade friction between Japan and South Korea, UNIQLO's revenues and net profits have dropped sharply and have closed stores in South Korea.
In October 10th, the fast selling group of UNIQLO announced its annual performance in fiscal year 2019 as of August 31, 2019, achieving a profit of 2 trillion and 300 billion yen, an increase of 7.5% over the same period last year. The net profit attributable to listed companies was about 162 billion 500 million yen, up 5% over the same period last year.
China Network Financial reporter noted that despite the 2019 financial year Xunmei group still achieved positive growth in performance, but the growth rate has slowed sharply compared with the past and last fiscal year. Fast selling group's 2018 financial year report shows that the group realized 2 trillion and 130 billion yuan of total revenue, an increase of 14.5% over the same period last year, and realized a net profit of 154 billion 800 million yen, a 29.9% increase over the previous fiscal year. XXX group achieved a net profit of 119 billion 280 million yen in fiscal year 2017, an increase of 148.23% over the same period last year.
Compared with the past, XXX group's performance growth has dropped sharply. In the Japanese and Korean markets, UNIQLO has been faced with severe challenges, and the performance of these two markets has declined to varying degrees.
It is worth noting that in the fiscal year of 2019, the overseas market revenue of UNIQLO business exceeded Japan's domestic market for the first time, and its total revenue exceeded 1 trillion yen for the first time. Among them, the Chinese market occupies half of the overseas market of UNIQLO. According to the results, the total revenue in the Greater China region has reached 502 billion 500 million yen, an increase of 14.3% over the same period last year, with net profit of 89 billion yen, an increase of 20.8% over the same period last year.
Unlike the Chinese market, UNIQLO is tired of its domestic market. In the 2019 fiscal year, the sales of Japan's local market increased by 0.9% to 872 billion 900 million yen, and operating profit dropped 13.9% to 102 billion 400 million yen.
Affected by Korea's boycott of Japanese goods, UNIQLO suffered a heavy blow in the Korean market. China net financial reporter noted that Xun marketing group said in its earnings report, the Korean market sales and profits declined in the 2019 fiscal year, but did not disclose the decline. According to incomplete statistics, UNIQLO's sales in Korea in July were 1 billion 780 million won, which was 70.1% less than that of 5 billion 940 million won in June. UNIQLO, which has been "encirclement and suppression" by South Korea, has closed three stores in South Korea. In July of this year, Okazaki Ken, chief financial officer of fast marketing group of UNIQLO parent company, said it was expected that South Korea's boycott of Japanese goods would not last for too long. It was regarded as "despising Korean consumers", which triggered a sharp protest by South Korean public opinion, forcing the two times to issue an apology statement on the official website, but consumers did not buy it.
Due to the poor performance of the Japanese domestic market and the Korean market, UNIQLO accelerated the pace of opening stores in Southeast Asia and Europe. According to the financial report, in September 2018, the first Holland store in UNIQLO opened in Amsterdam; in October, the largest global flagship store in Southeast Asia opened in Manila, Philippines; in April 2019, the first Danish store opened in Copenhagen; in September, the first Italy store opened in Milan; in October, it opened the first store in India Delhi.
In addition to UNIQLO, xxxx's other brands' GU 2019 fiscal year sales and profits are all high, with sales rising 12.7% to 238 billion 700 million yen compared with the same period, operating profit increased 139.2% to 28 billion 100 million yen. Other sub cards continued to be in a state of loss. According to the fast marketing group, there are still French brands Comptoir des Cotonniers, Princess tam.tam, and American jeans brand J Brand business.
Xun points out that despite the negative impact of the boycott of Japanese goods, it is expected that the new fiscal year will continue to grow. The Group expects profits in the current fiscal year 2020 to grow by 6.7% to 275 billion yen over the same period, which is far from the 15% increase expected by analysts. As new challenges continue to emerge, UNIQLO's parent companies are under pressure to maintain growth.
Source: China net finance