UNIQLO Japanese Same Store Sales Fell Another 1 Monthly Decline Of 0.9%

Uniqlo UNIQLO Japanese market recorded a 1% decline in the same store sales in January, and then showed a slump after showing signs of recovery last month, although Japanese giants claim that winter sales are booming.

In the 5 months of the current fiscal year, the Japanese market in UNIQLO was negative for three months, and sales in UNIQLO Japan still recorded a 1.3% decline in the 2019 fiscal year.

In January and the first five months, UNIQLO sales in Japan recorded a decline of 0.9% and 1.3%.

In January, the negative performance was composed of a decline of 0.9% passenger traffic and a decrease of 0.1% passenger price. During the reporting period, UNIQLO Japan closed 5 stores, and the number of stores and shops opened in the first five months was flat, all 11.

After the announcement, Fast Retailing Co. Ltd. (9983.T) fast retailing group fell 2.85% on Tuesday to 49100 yen, which has fallen 12.9% this year and has lost 225 of its 225 index 0.8%.

At the beginning of last month, the first quarter data released by the Japanese clothing giant showed that the Japanese domestic market had been abnormal for two consecutive months, and the sales had turned back. This led to the first decline in profits in the first quarter in three years. In the 9-11 months, the operating profit of Japanese companies decreased by 8.1% to 104 billion 665 million yen, or 970 million 200 thousand US dollars, less than the market expectation of 118 billion yen, and net profit fell by 6.4% to 73 billion 467 million yen per annum.

However, the management reiterated its annual target in November 2018 when it released the first quarter results: the annual revenue, operating profit and net profit in the 2019 fiscal year increased by 8%, 14.3% and 6.6% to 2 trillion and 300 billion yen, 270 billion yen and 165 billion yen respectively.

The first quarter results also showed a 5.2% rebound in the same store sales in UNIQLO Japanese market in December. In November, the same store sales in Japan fell by 4.3%, while in October it fell 10%.