Business

Fast Retailing cuts outlook on pandemic woes despite Uniqlo June rebound

Published

4 years ago

July 10, 2020

TOKYO (Reuters) – Japan’s Fast Retailing Co (9983.T), owner of casual clothing brand Uniqlo, lowered its outlook for the year as the coronavirus pandemic wreaked havoc on its global fashion business.

But it also reported a strong rebound in Uniqlo’s domestic same-store sales for June and said business in China was recovering faster than previously expected, suggesting it may weather the crisis better than many global peers.

Store closures and weak consumer spending around the world has brought a halt to years of growth at the company, now Asia’s biggest fashion retailer and the world’s No. 3 after Zara-owner Inditex (ITX.MC) and H&M (HMb.ST).

It forecast operating profit of 130 billion yen ($1.21 billion) for the year through August, down 50% from a year earlier rather than a previously expected 44%, following a surprise loss of 4 billion yen in the March-May quarter.

It also forecast annual sales to fall 13 percent to 1.99 billion yen, ending 16 straight years of growth.

“We have seen a large decline in both revenue and profit across the business,” CFO Takeshi Okazaki told reporters.

The company said markets such as South Korea, the United States and several others including Indonesia had been particularly hard-hit, while adding that its two key markets, Japan and China, were recovering faster than expected.

Uniqlo’s domestic same-store sales, including online purchases, rose 26% in June from a year earlier, after falling 57% in April and 18% in May.

Okazaki said items such as stretchy jogging pants and oversized t-shirts proved popular in the past quarter in Japan.

Analysts have said Uniqlo’s focus on practical, everyday wear rather than more trendy styles may work to its advantage as more consumers are spending time at home.

Fast Retailing also depends heavily on Asian economies, especially China, where Uniqlo’s mix of affordable basics and occasionally trendy items proved a massive hit among the burgeoning middle class.

Its struggle to gain market share in the United States, previously considered a major weakness, has spared it from a bigger hit from the virus outbreak.

Of Uniqlo’s 2,260 stores globally, just 51 are in the United States, which has reported the highest number of coronavirus infections in the world.

Okazaki said the company was not retreating from the U.S. market, although it would step up its “scrap and build” strategy of concentrating on profitable locations and shutting down low-performing stores.

He declined to comment when asked whether it would consider buying Brooks Brothers, which on Wednesday joined a list of U.S. brands that have filed for bankruptcy.

Reporting and photo: Reuters

Business

Maldives celebrates arrival of 2024’s 1 millionth tourist

Published

4 weeks ago

June 27, 2024

m@ldives

Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

Business

New air route connects Chongqing to Maldives

Published

1 month ago

June 25, 2024

m@ldives

Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.

Business

CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

Published

1 month ago

June 21, 2024

m@ldives

CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.