Uniqlo can’t bear it any longer, and its parent company Fast Retailing Group’s profits for fiscal year 2020 were almost halved.
Recently, Uniqlo’s parent company Fast Retailing The group announced its full-year results for fiscal year 2020 as of the end of August. Among them, the company achieved net profit of 90.3 billion yen, a year-on-year decrease of 44.4%; revenue was 2.01 trillion yen, a year-on-year decrease of 12.3%. Although there was no deficit, this was the first full-year performance decline for Fast Retailing since 2017.
In this regard, Fast Retailing said that due to the impact of the new coronavirus epidemic, the sharp decline in offline sales has become the main reason for the sharp decline in Uniqlo’s performance.
Uniqlo’s parent company announced its results, and its annual net profit fell 44%
On the evening of October 15, Fast Retailing Group announced its results, which showed that for the year ended August 31, 2020, the company’s revenue was 2,008.846 billion yen (approximately 127.9 billion yuan), a year-on-year decrease of 12.3%; the profit attributable to the company’s owners Profit was 90.357 billion yen (approximately 5.754 billion yuan), a year-on-year decrease of 44.4%; earnings per share were 885.15 yen, and the final dividend was 240.0 yen.
Regarding the decline in performance, Fast Retailing said that this was mainly due to the impact of the epidemic in the second half of the year, and stores around the world were Over the past few months, businesses have been temporarily closed, and customers have reduced their outings, resulting in a decrease in customer traffic, resulting in a significant decline in revenue and profits. In addition, due to the impact of the epidemic, performance deteriorated, resulting in impairment losses of 23 billion yen for stores and other stores in the full fiscal year. Gross profit margin decreased by 0.3 percentage points year-on-year, and the ratio of sales, general and administrative expenses to revenue increased by 2.8 percentage points year-on-year.
In addition, the total investment in comprehensive equipment this fiscal year was 82.7 billion yen, a decrease of 2.4 billion yen from the previous year. Among them, investment in IT systems and warehouses related to the Ariake project, as well as investment in new stores of Japan’s UNIQLO (UNIQLO) including global flagship stores and large stores, have increased. However, due to the decrease in the number of new overseas UNIQLO (UNIQLO) stores, the overall equipment investment A slight decrease from the previous year.
However, the group expects that revenue in fiscal year 2021 will increase by 9.5% year-on-year to 2.2 trillion yuan, and net profit will rebound by 82.6% to 165 billion yuan. The total dividend per share for the year is expected to be 480 yuan, including an interim dividend of 240 yuan and a final dividend of 240 yuan, which is the same as the previous year.
Fast Retail Group pointed out that for the first half of the year, revenue is expected to decline, mainly because Southeast Asia and Europe and the United States will continue to be affected by the epidemic, resulting in restrictions on travel and restrictions on travel. Decline in demand and other factors. However, it is expected that the impact of the epidemic will subside in the second half of the year, and each business segment is expected to record substantial revenue growth and significant improvement in operating profits.
Affected by the news, Fast Retailing (6288.HK) performed strongly after resumption of trading today. As of the close, it reported HK$54.2, an increase of 6.27%. The latest total market value was HK$574.9 billion.
It is also worth mentioning that, benefiting from the control of the domestic epidemic and market sentiment, Fast Retailing Group on March 23 The stock price rebounded after hitting bottom and has risen by about 85% so far.
Uniqlo’s sales accounted for more than 80%, and China contributed to it 23% revenue
It is reported that Fast Retailing Group is a Japanese holding company mainly engaged in the apparel business. The most important of the three business divisions operated by the company is the UNIQLO division, which sells casual clothing under the UNIQLO brand name in the Japanese domestic market and overseas markets. The global brand division is engaged in the planning, manufacturing and sales of clothing under brands such as COMPTOIR DESCOTONNIERS, PRINCESSE TAM.TAM, Theory, Helmut Lang, PLST, etc. in domestic and foreign markets.
From a regional perspective, as of August 31, 2020, according to data disclosed by Fast Retailing Group, sales revenue in Japan was 806.887 billion yen, accounting for 40.2%; while sales revenue in China was 455.986 billion yen, accounting for 22.7%.
In terms of brands, most of Fast Retailing’s revenue comes from Uniqlo. Data shows that Uniqlo’s last fiscal year Revenue was 1,650.825 billion yen, accounting for 82.2%; while premium business and global brand business accounted for less than 20%.
In the financial report, Fast Retailing pointed out that in the overseas UNIQLO (UNIQLO) business segment, the cumulative revenue for this fiscal year was 843.9 billion yen (a year-on-year decrease of 17.7%), and operating profit was 50.2 billion yen (a year-on-year decrease of 63.8%), with both revenue and profit falling significantly. This is mainly due to the impact of the public health incident, which resulted in a sharp decline in both revenue and profit in the second half of the year, and the fact that this business segment, mainly in South Korea and the United States, recorded an impairment loss of 15.8 billion yen for the full year. However, the revenue of the online store business increased by nearly 20% compared with the previous year, and the scale in each market was stable.��Expand.
Fast Retail stated that the group’s mid-term vision is to become the world’s number one clothing retail manufacturer as a “digital consumer retail enterprise”. In order to achieve this goal, the company is committed to expanding overseas UNIQLO (UNIQLO), GU (Excellent) and global e-commerce and other businesses. It not only continues to expand UNIQLO stores in various markets, but also opens global flagship stores and large stores in major cities around the world to further spread the concept of UNIQLO. At present, the performance of various markets continues to be affected by the epidemic, but the group will give top priority to the safety and health of its customers, employees and partners, and at the same time continue to expand its business scale.
The number of Uniqlo stores in China exceeds that in Japan
According to the Nihon Keizai Shimbun report , because the new crown epidemic in China has basically subsided, Uniqlo has reopened a large number of stores, and its number of stores in China (direct sales) has surpassed Japan for the first time.
As of the end of August, the number of UNIQLO’s Chinese stores reached 767, surpassing Japan’s domestic direct-operated stores (764 stores) for the first time ). There were 745 stores at the end of May, but after June the epidemic in China basically subsided, Fast Retailing expanded its store network to local cities at an average of 7 stores per month. Uniqlo had only 387 stores in China at the end of August 2015, and the number had doubled in five years.
At the end of September, the number of Uniqlo stores increased to 782. If you include franchised chain stores, the number of stores in Japan (814 stores) still dominates, but the total number of stores in China and Japan is likely to reverse as early as 2020.
Previously, Fast Retailing Group expected to further expand its global store network to 3,725 stores by the end of August 2021, including 813 Japanese UNIQLO stores (including franchise stores) , 1,558 overseas UNIQLO stores, 445 GU stores and 909 global brand branch stores.
The founder has been the richest man in Japan many times, and his wealth once surpassed Masayoshi Son
In addition, when talking about Uniqlo, it is difficult not to mention the founder behind it, Masaru Yanai, who was once known as the “God of Management.”
Masaki Yanai was born in 1949. At the age of 23, he took over the family business with a turnover of 100 million yen and built it into UNIQLO, Japan’s number one casual wear brand.
Uniqlo started in Japan, and then Tadashi Yanai went to Hong Kong, China to learn from it, and then widely applied his business wisdom In London, New York and other places, Uniqlo has achieved global influence, and at the same time it has continued to accumulate wealth. It has become Japan’s richest man several times, and its wealth once surpassed SoftBank’s Masayoshi Son.
In 2009, Yanai ranked first on the Forbes Japan rich list with a net worth of US$6.1 billion. Ten years later, in 2019, Yanai Masaru successfully defeated SoftBank’s Masayoshi Son and became Japan’s richest man with a net worth of US$24.9 billion. This is the first time since 2016 that Yanai has returned to the top spot.
On April 7, 2020, Yanai Masaichi and his family ranked 41st on the “2020 Forbes Global Billionaires List” with a wealth of US$19.7 billion.
Yanai Masaru once said in his autobiography: “Enterprises are impermanent, and there is a high possibility that they will not be able to operate sustainably. This is because there are business opportunities first and popular products are created. , successfully raise funds, so there is a need for the existence of the enterprise. Once these conditions disappear, the enterprise may collapse in an instant.”
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