UNIQLO Japan’s operating profit drops by 5.6%

Its operating profit stood at JPY39.4b in the first quarter of FY2023.

UNIQLO Japan reported its operating profit declined by 5.6% to JPY39.4b in the first quarter of fiscal year 2023.

This is even as the brand recorded a higher revenue of JPY240.9b (+6.4%). 

“Cooler-than-usual temperatures in September and October helped generate strong sales of Fall Winter items, such as jackets, souffle yarn knitwear, cashmere, and HEATTECH items,” parent company, Fast Retailing, noted in a report. 

In addition, the sale of on-trend items, such as our tucked wide-leg pants, performed well. 

Similarly, UNIQLO International’s profit also went down by 4.4% to JPY57.2b, despite a 19.4% revenue growth to JPY357.8b over the same period. 

Read more: Fast Retailing Q1 profit contracts 9.1% in FY2023

Fast Retailing attributed this to the impact of COVID-19 restrictions on movement in Mainland China, which resulted in a large contraction in profit there, and the temporary suspension of operations in Russia, which resulted in a first-quarter loss. 

This was offset by the record first-quarter performances of other markets, such as South Asia, Southeast Asia & Oceania region, North America, and Europe (excluding Russia).