In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.
Weaker performance in Japan
Uniqlo’s total turnover in the past fiscal year grew 4.2 % to 1.86 trillion yen (13.9 billion euro), with profit up 148 % to 119 billion yen (8.9 million euro). That was mainly because of several cost-cutting measures. Uniqlo is still onerous in the United States, but its losses have halved compared to the year before. European profit dropped slightly because the company invested in opening another twenty stores.
The smaller turnover growth was mainly because of a weaker performance (+ 1.4 %) in its home territory of Japan. International sales grew 8.1 % backed by a weaker Japanese currency. Excluding Japan, operational profit nearly double with exceptionally strong performances in Southeast Asia and Oceania.
Strong international sales growth
Parent company Fast Retailing has high expectations for its international turnover. It contributed 38 % in the past fiscal year, up from 22 % in 2013. Within a year, Uniqlo should generate more turnover outside of Japan for the first time ever. Online turnover should also grow 30 %, which should mostly help lead to better results in its home territory of Japan.