CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Uniqlo owner to accelerate e-commerce transition

By Mensholong Lepcha

09:00, 14 October 2021

Uniqlo storefront
Fast Retailing's Uniqlo store – Photo: Shutterstock

Uniqlo owner Fast Retailing on Thursday reported an 88% jump in full-year profit and laid down plans to focus on e-commerce operations in the coming year.

Fast Retailing said that it will focus on accelerating its transformation into a “digital consumer retailing company.”

On Thursday, the fast-fashion company posted a profit of JPY169.85bn ($1.49bn) for the full year ended 31 August 2021 compared with a profit of JPY90.36bn a year ago.

E-commerce focus

Full-year revenue rose 6.2% to JPY2.13trn from a year ago helped by a rise in e-commerce sales and foreign exchange gains.

The Japanese apparel firm said it intends to diversify its earnings by increasing profit outside its core market of Japan.

The company added that it will work on breaking free from relying on discounting and will reduce the number of product items to pursue a lean business with no unnecessary use of resources.

What is your sentiment on 9983?

41216.0
Bullish
or
Bearish
Vote to see Traders sentiment!

Uniqlo Japan

Fast Retailing said Uniqlo same-store sales including online sales in Japan, its biggest market contributing about 40% of total revenue, rose 3.6% year-on-year.

US100

18,806.00 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 1.8

DE40

18,687.50 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 21:00 (UTC)
Spread 1.5

US30

39,398.60 Price
-0.490% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 2.2

J225

38,825.60 Price
-0.010% 1D Chg, %
Long position overnight fee -0.0112%
Short position overnight fee -0.0110%
Overnight fee time 21:00 (UTC)
Spread 10.0

Full-year e-commerce sales rose 17.9% year-on-year for Uniqlo Japan and constituted 15.1% proportion of total revenue, the company said.

Fast Retailing said it expects Uniqlo Japan to report lower revenue and profit in full-year 2022 on the back of a temporary decline in business performance while structural reforms such as normalising inventory and restricting discounting are being carried out.

Outlook

The company said it expects to achieve a consolidated revenue of JPY2.2trn representing an increase of 3.1% year-on-year for full-year 2022.

Full-year 2022 profit is expected to be JPY175bn representing an increase of 3% year-on-year.

“We predict revenue and profit will decline in the first half from 1 September 2021 to 28 February 2022 based primarily on assumptions that COVID-19 restrictions and temporary store closures will continue to a certain extent and our decision to incorporate some negative impact from production or transportation delays,” said the company.

Read more: Japanese yen at near three-year low against greenback

Markets in this article

9983
Fast Retailing Co., Ltd.
41216.0 USD
449.9 +1.110%
9983
Fast Retailing Co., Ltd.
41216.0 USD
449.9 +1.110%

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading