Uniqlo Parent Company "Operating Loss in Korea"... Sales and Net Profit Both Decline for the First Time in 17 Years

Impact of COVID-19 and Boycott Movement Against Japanese Products

[Asia Economy Reporter Kwon Jae-hee] The Japanese company Fast Retailing, which owns the fashion brand 'Uniqlo,' has seen its performance sharply deteriorate over the past year. This is interpreted as being due to the COVID-19 pandemic and boycott movements within Korea.

According to the financial results announced by Fast Retailing on the 16th, the net profit based on consolidated financial statements for the fiscal year 2019 (September 2019 to August 2020) decreased by 44.4% compared to the previous year, amounting to 90.3 billion yen (approximately 983.2 billion KRW).

Sales revenue fell by 12.3% to 2.0088 trillion yen (approximately 21.8732 trillion KRW).

Japanese media reported that this is the first time in 17 years that both sales revenue and net profit have declined in annual results.

In particular, Fast Retailing announced that the Uniqlo business recorded an operating loss in Korea.

Following Japan's strengthening of export regulations against Korea as a de facto retaliation for the forced labor ruling during the Japanese colonial period, a boycott of Japanese products spread in Korea, which appears to have negatively impacted Fast Retailing's performance.

Meanwhile, Fast Retailing forecasted that next year's sales revenue will increase by 9.5% to 2.2 trillion yen, and net profit will rise by 82.6% to 165 billion yen.