uniuniJapanese casual apparel retailer Uniqlo is expected to post solid June same-store sales, taking the pressure off a profit decline for owner Fast Retailing Co due to stock closures and low demand in the coronavirus pandemic.
For June, JP Morgan analyst Dairo Murata predicted a 20 percent–30 percent rise in the same-store domestic sales of the brand, driven by demand for the company’s face masks of Airism, which quickly sell out after going on sale that month. Japan started late May with the lifting of pandemic lockdown measures.
This growth will be the biggest indication of the company’s turnaround, at least in its own market, after declines from 57 percent in April and 18 percent in May. Stores have also reopened in China, which is a major growth area, and people are shopping again.
While strong June sales may also highlight the relative strength of the company among global fast-fashion peers, helped by its emphasis on functional apparel and dominance in Asian markets, it might be too early to claim the worst is past.