Jakarta, CNN Indonesia –
The wealth of the richest man Japan, Tadashi Yanai increased to reach US $ 41.6 billion or around Rp. 586.5 trillion (assuming an exchange rate of Rp. 14,100 per US dollar). This was driven by a surge in spending on everyday clothes Uniqlo amid the covid-19 pandemic.
Quoting Forbes, Saturday (5/12), Yanai’s wealth was boosted by the 114 percent increase in Fast Retailing’s shares since March 2020. He has more than doubled his wealth when Fast Retailing’s shares fell in March 2020 due to the Covid-19 pandemic.
Fast Retailing owns several fashion brands, such as Uniqlo, Theory, Helmut Lang, J Brand, and GU. JP Morgan Senior Analyst Dairo Murata said that the jump in Fast Retailing shares occurred because the company had a new strategy that focused on everyday clothing that was preferred by people who work at home.
“Sales are good because the product line matches stay-at-home demand. Fast Retailing has always been promoting the concept life wear and selling clothes that fit the style of working from home, “Murata said.
Uniqlo has more than 3,600 stores in 26 markets in Asia, North America and Europe. Even though its shares rose, Fast Retailing’s profits plummeted due to the Covid-19 pandemic.
The company recorded revenue fell 12 percent to 2 trillion yen or US $ 19 billion as of August 2020. This caused Fast Retailing’s net profit to drop 44 percent to US $ 853 million.
The decline occurred because outlets were closed during the Covid-19 pandemic. Management admits that it nearly closed half of its 748 outlets in China in January and only reopened in April 2020.
Then, the number of outlets closed in Japan reached 311 out of 817 outlets at the end of March 2020. Then, new outlets in Japan re-opened in early May 2020.
Luckily, specifically for Japan, Uniqlo still recorded a 2 percent increase in net profit. Sales of Uniqlo Japan are underpinned by e-commerce which rose 29.3 percent as of August 2020.
“The spread of COVID-19 has driven a change in values and prompted us to research the way we live. The meaning of clothing has also changed as we have witnessed a strong shift from the clothes worn to beautifying or emphasizing social status,” said Yanai.
Fast Retailing expects revenue to increase 10 percent in 2020. In addition, net profit is forecast to jump 83 percent.
(aud / sfr)
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