UNIQLO Financial Year 2020 Results Announced

Recently, UNIQLO's parent company, fast retailing group, announced the full year performance of fiscal year 2020 as of August 31. Although the comprehensive income and operating profit both decreased, the group's annual performance was better than expected due to the faster recovery pace in Greater China than expected. Online sales in Greater China up 20%

According to the results released by FMCG, the company's income in 2020 will be 2008.846 billion yen, a year-on-year decrease of 12.3%; the profit attributable to the owner of the company is 90.357 billion yen (about 5.754 billion yuan * *), a year-on-year decrease of 44.4%; the profit per share is 885.15 yen, and the final dividend is 240.0 yen.

As for the decline in performance, Fast Retailing said that this was mainly due to the temporary closure of stores around the world in a few months due to the impact of the epidemic in the second half of the year, and the decrease of customers' going out, which led to the decline of passenger flow, resulting in a sharp drop in revenue and profit. In addition, affected by the epidemic, the performance deteriorated, resulting in a total of 23 billion yen of impairment loss in stores and other areas throughout the financial year.

From the perspective of brands, most of the revenue of FMCG comes from UNIQLO. According to the data, UNIQLO's revenue in the last fiscal year was 1650.825 billion yen, accounting for 82.2%; while Gu business and global brand business accounted for less than 20%.

In terms of regions, Japan's local sales revenue was 806.8 billion yen, down 7.6% year-on-year, but the recurrent profit reached 104.6 billion yen, up 2.2% year-on-year; the accumulated revenue of the overseas UNIQLO business division in this fiscal year was 843.9 billion yen, down 17.7% year-on-year, and the operating profit was 50.2 billion day yuan, down 63.8% year-on-year.

UNIQLO analysis, this is mainly due to the loss of 15.8 billion yen in the market mainly in South Korea and the United States. Only the total revenue of Greater China region was 455.9 billion yen, with a year-on-year decrease of 9.3%. The operating profit was 65.6 billion yen, with a year-on-year decrease of 26.3%. Since March, the performance has been faster than expected, especially the sales volume of online stores has increased by 20% year-on-year.

The number of Direct stores in China is more than that in Japan

Fast Retailing said that the group's medium-term vision is to become the world's number one clothing retail manufacturer as a "digital consumer retail enterprise". To achieve this goal, the company is committed to expanding overseas UNIQLO, Gu and global e-commerce business. It not only continues to expand UNIQLO stores in various markets, but also opens global flagship stores and large stores in major cities of the world, so as to deeply spread the brand concept of "suitable for life" and continue to expand its business scale.

It is worth mentioning that, thanks to China's effective control of the epidemic, UNIQLO has resumed the pace of opening stores in the Chinese market since June, expanding its store network to third and fourth tier cities at the rate of seven stores per month. As of the end of August, the number of UNIQLO stores in China has reached 767, which is more than that of 764 Direct stores in Japan. However, UNIQLO only had 387 stores in China at the end of August 2015, doubling in five years.

The Group expects revenue to reach 2.2 trillion yen in fiscal year 2021, an increase of 9.5% over the previous year. The profit attributable to owners will rebound by 82.6% to y165 billion. It is expected that the total dividend per share for the whole year will be 480 yen, including the medium-term interest of 240 yen and the closing interest of 240 yen, the same as that of the previous year.

Affected by the news, fast retailing group had a strong performance after resuming trading on October 16. It closed at HK $54.2, up 6.27%, and its latest total market value was HK $574.9 billion. Fast retailing group's stock price has risen about 85% since it bottomed on March 23.