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Uniqlo reports 7.2% revenue decline

The group’s owner has forecasted further losses to both revenue and operating profits in its European operations

Fast Retailing, the parent company of Uniqlo, has revealed the high street fashion brand’s year-on-year revenue for the quarter ended 30 November 2020 fell by 7.2%.

A large profit rise in Asia alongside steady e-commerce expansion did result in a £295m (9.5%) Q1 2021 increase to the firm’s global operating profits.

As for Europe, temporary closures to Uniqlo stores across the continent resulted in “significant falls in both revenue and profit”.

The group’s Q1 2021 report said: “While Uniqlo Europe was tracking a recovery and recording sales on a par with the previous year through October, the temporary closure of all our stores in the United Kingdom, France, Belgium, and Italy in November resulted in a considerable decline in both revenue and profit for the first quarter as a whole.”

Overall, the parent company said its revenue for the quarter totalled £4.4bn, a year-on-year fall of 0.6%.

While the group operated over a 23.3% rise to its operating profits, this was mainly driven by “large profit gains” throughout China, Hong Kong, and Taiwan.

However, the group announced that it expects further declines to both Uniqlo’s European revenues and profits in its upcoming H1 2021 financial results.

It said: “Uniqlo International is expected to report a first-half decline in revenue and a sharp rise in profit, but that will still likely be below our initial plan.

“Regions that have been hit harder than expected by Covid-19, such as Uniqlo South Asia, Southeast Asia & Oceania and Uniqlo Europe, are expected to fall below plan by reporting large declines in both first-half revenue and profit.”

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