Fast Retailing Stock Hits Five-Month Low on Weaker Uniqlo Japan Sales

Shares of Fast Retailing Co. (TYO:9983) fell to a nearly five-month low on Thursday after the company reported a drop in August same-store sales for its Uniqlo Japan division. The retailer cited poor weather conditions that weakened demand for its summer clothing lines.

Market Reaction

In Thursday's trading, Fast Retailing's stock declined 3.4% to close at 68,030 yen, its lowest level since April 9. The drop represented a significant underperformance compared to the broader Japanese market, as the Nikkei 225 index finished the day up 0.2%.

August Sales Weaken

The company announced that Uniqlo Japan's same-store sales, including online transactions, fell 1.3% year-over-year in August. This reversed a 4.3% gain recorded in July. Total sales, which also include online, were down 2.2% for the month, following a 5.0% increase in July.

Fast Retailing attributed the poor performance to lower temperatures and unfavorable weather, which dampened consumer appetite for summer apparel. The data also revealed a notable divergence in customer behavior:

Ad

• Same-store customer numbers fell 9.1%.
• The average purchase value per customer rose 8.6%.

Broader Context

Despite the monthly setback, the retailer's performance for the full year remains positive. For the year ending in August, Uniqlo Japan's same-store sales were still up 5.1%, and total sales had increased by 5.5%, suggesting the August decline has had a limited impact on the broader annual trend so far.

The company noted that four stores were excluded from the same-store sales calculation due to temporary closures caused by an earthquake in Kumamoto Prefecture and heavy rainfall in Chiba Prefecture.