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Uniqlo heatwave hits European stores but profit surges

Financial Times Companies •
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A record European heatwave forced several Uniqlo stores to close temporarily in May, curbing the summer‑season sales lift the retailer had counted on.

Fast Retailing CFO Takeshi Okazaki said the closures hit stores across the region, though the company still posted double‑digit revenue growth in Europe. Quarterly net profit surged 39.1% to ¥146.7bn ($903mn), and the group lifted its full‑year sales target to ¥3.97tn, putting it on track to overtake Inditex as the world’s second‑largest fashion retailer.

In contrast, an unusually cool June in Japan dragged domestic sales down 14% year‑on‑year, while a weak yen forced price increases. Rivals felt the heat too: Greggs shut 11 UK outlets for two days, Marks & Spencer is reviewing refrigeration after breakdowns above 45 °C, and H&M plans to redesign collections for longer hot periods.

Europe remains Uniqlo’s fastest‑growing market alongside the US, and the episode underscores how climate volatility is becoming a strategic variable for global apparel chains.