UNIQLO Parent Fast Retailing Reports Minimal Q1 2021 Sales Dip
Despite the ongoing COVID-19 pandemic, the fast-fashion retailer is weathering the storm.
Coming off a healthy season of sales, UNIQLO parent company
Still feeling the effects of the ongoing COVID-19 pandemic, Fast Retailing’s sales fell 0.6 percent while net profit dropped 0.7 percent to just over ¥70 billion JPY (approximately $677 million USD). These minor declines were somewhat offset by soaring operating profits, which ballooned by 23.3 percent (¥113 billion JPY or approximately $1.08 billion USD) in the first quarter. Still, the year-on-year decline was an imposing 7.2 percent; a ¥260 billion JPY (approximately $2.5 billion USD) dip.
Key to that elevated profit was a variety of strong product offerings courtesy of Fast Retailing’s crown jewel, UNIQLO. These included new collections from UNIQLO U, J.W. Anderson and Jil Sander’s revived +J.
“We enjoyed strong sales of products such as loungewear and HEATTECH blankets that fulfilled customer demand for stay-at-home items,” Fast Retailing explained in its statement. “Our Ultra Stretch Active Pants … haori-style jackets, Smart Ankle Pants, and other Fall Winter ranges also sold well.”
“Our +J collection with designer Ms. Jil Sander, our collaborative Peanuts products, and AIRism masks also contributed to the rise in sales,” it continued. “E-commerce sales expanded strongly, with online sales rising to ¥36.7 billion JPY (+48.3% [approximately $353 million USD]) in the first quarter.”
Fast Retailing reported a rise in revenue for its most affordable imprint, GU, contrasted against down-trending income for its other labels, including Theory and Comptoir des Cotonniers. Nevertheless, it remains optimistic for the remainder of 2021, projecting the same expectations as its prior report: an over 82 percent jump in net profit to ¥165 billion JPY (approximately $1.59 USD).
This declaration follows the expected news that COVID-19 has heightened online shopping and even boosted the coffers of some luxury labels, including Prada.
