UNIQLO Parent Company'S Revenue Reached 39 Billion 400 Million In The First Quarter, And Net Profit Of Nearly 4 Billion 500 Million Was Achieved By "Cost-Effective".

During the period, the total sales revenue of fast selling was 644 billion 400 million yen (about 39 billion 411 million yuan, the first textile net note), an increase of 4.4% compared with the same period last year. The total operating profit was 104 billion 600 million yen (6 billion 401 million yuan, the first textile net note), representing a decrease of 8.1% over the same period last year, showing an increase in profits and a decrease in profits. The net profit of the parent company should be 73 billion 476 million yen (about 4 billion 493 million yuan, the first textile net note), which fell by 6.45% compared to the same period last year. The overseas UNIQLO (UNIQLO) business segment performance has steadily expanded to maintain the trend of double growth in earnings and profits. However, Japan's UNIQLO business segment has been in the doldrums due to the warm winter, resulting in a decrease in profits and double profits. UNIQLO parent company, fast Marketing Co., Ltd. (hereinafter referred to as "fast marketing") announced the first quarter of fiscal year 2019 (September 1, 2018 to November 30th) in January 10th, and reported the results.

Gross profit margin decreased by 1 percentage points compared with the same period last year, and sales, general and administrative expenses accounted for 1.3 percentage points increase in revenue.

In addition, since the end of November, the US dollar exchange rate declined against the US dollar at the beginning of the quarter, and the value of assets held in foreign currencies increased after conversion to the yen. Net income of net income was 6 billion 400 million yen.

As a result, the pre tax profit in the aggregate period was 111 billion yen (down 5.7%), and the owner's share of the quarterly profit was 73 billion 400 million yen (down 6.4%).

According to the insiders, the main reason for the growth of fast sales is the performance price ratio + fabric innovation + quality manufacturing. Its rapid growth has a strong reference for the current clothing retail enterprises. The main products of high performance price ratio, and the brand of clothing that will grasp the sensitivity of consumers will conform to the new trend of consumer spending, and then stand out.

But since 2018, after the rapid expansion of globalization and multi brand / category layout, the growth center of fast fashion brands has gradually shifted downward.

In the Chinese market, fast fashion brands are also facing problems such as sinking down and brand quality being criticized.

Following the announcement of the closure of Tmall flagship store by TOPSHOP in November 1, 2018, the British fast fashion retailing brand NewLook announced in December 10th that it will also close its stores in the near future.

In the view of Lei Yu, an analyst at Changjiang Securities, the fast fashion brand is cold in China. On the one hand, it shows that the demand of local consumers for clothing consumption is no longer just satisfied with the rich style, but also gradually increases the concern for quality and emotional elements. On the other hand, it also reserved space for domestic brands that deeply ploughed the local market.

Lei Yu believes that the fast fashion brand sinks sluggish, while the local mass brands have localization and the advantages of low line deep tillage, and are expected to achieve the two growth on the basis of product strength, channel power and upgrading of the supply chain system.

In 2017, the scale of China's adult mid-range casual wear market was about 245 billion 400 million yuan, accounting for about 35.8% of the domestic casual wear market.

From the perspective of industry growth, domestic consumers' preference for local clothing and footwear products has provided an important consumer base for the development of local brands. At the same time, the vigorous consumption vitality of residents in the low line market has provided an economic prerequisite for the development of local brands rooted in the low line market.

In the era of low line consumption rising, international brands are constrained by the bottleneck of low consumption power, the lack of brand awareness, the harsh conditions of entry, and the preference of agents. Facing the bottleneck of localization, the local brands with high efficiency in the county market have more advantages.

Lei Yu said frankly, there is a coexistence of economic slowdown and labor dividend subsidising in the current society, and consumers are facing the contradiction between lower income growth and higher personal debt rate. Residents' consumption preferences and consumption preferences are in the structural adjustment period.

Looking forward to the 2019, the long standing urban and rural two element structure provides a broad space for the rise of low line consumption. The localization and lagging of overseas fast fashion brands provide a rare opportunity for the development of domestic brands. Secondly, in the process of brand upgrading to quality upgrading, non price elements such as cultural identity, convenient experience and quality upgrading will exert a subtle influence on consumers' consumption decisions and preferences, and create a temperature, personified brand image and consumption experience, or focus on the next stage of clothing brand building.

The following are the main contents of the first quarter of the 2019 financial year:

In the Japanese UNIQLO (UNIQLO) division, the first quarter earnings in 2019 were 246 billion 100 million yen (down 4.3%), operating profit of 37 billion 900 million yen (down 29.9%), and both earnings and profits declined.

Same store net sales (including online stores) recorded a year-on-year decrease of 4.3%.

Despite the strong sales of new products and fashion goods such as special wool, sweater, heavy sportswear, fleece, knitted jacket and so on, however, during the period of high temperature in October and November, the flagship sales in winter continued to be sluggish.

On the other hand, online store sales increased by 30.9% over the same period last year, showing a strong performance, which accounted for 9.7% of revenue from 7% in the same period last year.

In terms of profitability, the depreciation rate of the company's internal yen has led to an increase in the cost of sales, coupled with the strengthening of discount promotions in winter commodities, resulting in a 3.2% decrease in gross margin compared with the same period last year.

And sales, general and administrative expenses accounted for the yield ratio due to increased logistics costs, automated warehouse and other reasons led to an increase in depreciation costs, an increase of 2.2 percentage points over the same period.

In the overseas UNIQLO (UNIQLO) business segment, the first quarter earnings were 291 billion 300 million yen (up 12.8% over the same period), operating profit of 52 billion 500 million yen (an increase of 12.6% over the same period), showing a double increase in earnings and profits.

The profits and profits of the overseas UNIQLO division have significantly surpassed Japan's UNIQLO and become the largest business segment in the group.

From the geographical perspective:

Although the Greater China region has been affected by warm winter, it has recorded a double increase in profits and profits.

Among them:

China's operating profit has maintained a good trend of double-digit growth.

Moreover, the sales performance of online stores in mainland China is strengthened by the combination of stores and e-commerce, and continues to achieve double-digit growth in revenue.

South Korea has increased its profit margins by controlling discount rates and flexibly using RFID to improve business efficiency.

The same store sales net sales in all markets in Southeast Asia and Oceania have increased, and the situation is good. Both earnings and profits have increased significantly.

In addition, because of the re evaluation of the composition of regional commodities and the continuous growth of online store sales, the United States has recorded a substantial increase in both earnings and profits, thus steadily moving towards a surplus in the current fiscal year.

Europe has also achieved a significant double increase in earnings and profits.

Russia's performance is especially good.

In addition, as of September 2018, UNIQLO opened its first store in Amsterdam, Holland. In October of the same year, it opened the largest flagship store in Southeast Asia in Philippines, Manila.

In the GU sector, the first quarter earnings were 65 billion 400 million yen (up 7.7% over the same period), and the operating profit was 8 billion 500 million yen (down 4.9%), showing a drop in earnings growth and profits.

In terms of profitability, a slight decrease in gross profit margin and a rise in expenditure resulting from enhanced advertising and publicity led to a slight decrease in profits.

However, during the period, the trend of revenue growth began to turn to growth by adjusting the composition of goods to the public trend and restarting television advertising and strengthening market publicity.

In particular, the sales of sportswear and loose knitted sweaters are particularly strong. As the temperature drops, the sales situation is good.

In the global brand division segment, the first quarter revenue was 40 billion 700 million yen (up 1.8% over the same period), operating profit of 2 billion 700 million yen (down 9.9% compared with the same period last year), showing a decrease in earnings growth and profits.

Among them, Theory business, due to strong sales in the United States, at the same time, due to the reduction of discount sales losses, recorded a substantial increase in profits.

PLST business recorded revenue growth, and as the number of stores increased, expenditure growth and profits declined slightly.

The French brand ComptoirdesCotonniers business, PRINCESSEtamtam business, and the American brand JBrand business of high quality denim brand continued to record operating losses.

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