Devaluation Of Japanese Yen

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Because of the surge in domestic and foreign sales and the impact of the devaluation of the yen, Japan's fast fashion brand.

It will raise the price again.

The depreciation of the yen made the prices of raw materials imported from UNIQLO rise, but the revenue from overseas stores rose again in yen, which made UNIQLO unhappy.

The price increase is in line with the economic goals of the Japanese Prime Minister Abe Shinzo administration, especially after the government raised the consumption tax in April.

From June to September, the price of imported raw materials increased, and the company raised its total price by 5%.

Since June, the yen has fallen by 17% against the US dollar.

On Thursday, Takeshi Okazaki, chief financial officer, said: "in the economic environment, we have no choice but to raise prices."

From September to November, the average consumer spending on clothing will increase by 9.9%, due to the rising prices of products in autumn and winter, although the number of customers in 850 stores has declined.

Tokyo based XXX group's first quarter net profit rose 64%, to 68 billion 800 million yen (565 million US dollars), exceeding the expected target of 20 billion yen.

The total sales volume increased by 23% compared to the same period last year, reaching 480 billion yen, of which, the sales of UNIQLO China and South Korean stores both increased by two figures, and sales in Japan accounted for about half of the total sales, up 12% compared to the same period last year, mainly due to the cold weather which stimulated the demand for clothing in autumn and winter.

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For the fast forward group, the weakness of the yen is really a mixed blessing.

Despite the rising cost of imports of raw materials, foreign sales continued to grow in yen.

Okazaki said that the yen fell to 1 yen against the US dollar and its operating profit increased by 1 billion yen.

Although sales in the first quarter were far ahead of expectations, the company remained unchanged throughout the year, claiming that it needed to observe the trend of the yen.

In the current fiscal year August 31st, the company's forecast was based on the yen's exchange rate of 102.5 against the US dollar, not the current 120.

Consumers are also cautious about the company's future.

Okazaki said: "consumer goods are still sensitive to prices, and they will not let go of money bags."

Analysts said that although the price increases, but may not significantly affect the sale of UNIQLO.

"If the economy is active, consumers may choose more expensive brands, but this is not the case," said Mitsushige Akino, chief investment manager of Jilin investment management company.

Akino added that this year, Prime Minister Andouble raised the wages of employees, coupled with the fall in oil prices, and the rise in incomes would also boost the purchasing power.

Extended reading:

UNIQLO

UNIQLO (Japanese kana): the Japanese clothing brand was founded in 1963 by the Japanese fast retailing company. It was a small clothing store selling Western-style clothes, and now it has become an internationally famous clothing brand.

Liu Chi, the current chairman and general manager of UNIQLO, is the first to introduce a hypermarket style clothing sales mode in Japan, which has realized the low cost of store operation through the unique commodity planning, development and sales system, which has led to the hot selling of UNIQLO.