SMH: Uniqlo’s fashion flies off shelves, but store openings bite

Image Credit: SMH / Noriko Hayashi/Bloomberg

Uniqlo Australia experienced a 35 per cent rise in sales revenue, reaching $570.2 million for the financial year ending August 31, driven by strong demand for wardrobe essentials and the opening of nearly 10 new stores. However, rising wages and operational expenses saw net profit dip by 1 per cent to $31.7 million. RetailOasis strategist Emma Easton highlighted Uniqlo's mass appeal, particularly among Australia's Asian community, and noted that "outgoing costs have increased significantly, negatively impacting profit across the board." Despite a challenging market environment with rising supplier costs and interest rates, Uniqlo remains committed to expansion and maintaining its reputation for high-quality, affordable products. Recent store openings, including in Canberra and South Australia, reflect the brand’s continued investment in the local market. Read the full article here.