Japan-based manufacturer and retailer Fast Retailing, reported 4.7 per cent decrease in its revenues to ¥1,208 billion in the half-year period (H1) FY20 ended on February 29, 2020 compared to ¥1,267 billion in same period prior year. Operating profit for six months period were ¥136.7 billion compared to ¥172.9 billion in H1 FY19.

The company’s gross profits in H1 FY20 were ¥576.7 billion. Its selling, general and administrative expenses reported a loss of ¥438.7 billion. The company reported weaker performance was due to reductions in revenue and profit at Uniqlo International segment (South Korea, Mainland China, Hong Kong and Taiwan), which were adversely impacted by Covid-19 and other factors.

Uniqlo Japan reported 5.7 per cent decrease in revenue to ¥463.5 billion. However, its operating profit rose by 5.7 per cent to ¥71.6 billion. Same-store sales declined by 4.6 per cent after the warmer winter weather stifled sales of core winter items. While e-commerce sales grew by 8.3 per cent, the rate of online sales growth slowed for the same reasons as for our physical stores.

Uniqlo International reported 6.7 per cent decline in revenue to ¥ 541.2 billion and operating profit fell 39.8 per cent to ¥53.2 billion. This was reportedly due to considerable reductions in revenue and profit at Uniqlo South Korea and Uniqlo Greater China, which were both adversely impacted by the outbreak of Covid-19 and other factors.