Fast Retailing shares at near five-month low after Uniqlo August sales decline

Fast Retailing's shares slipped to near a five-month low on Thursday following a decline in Uniqlo Japan's August same-store sales. The weakening demand for summer clothing, attributed to lower temperatures and unfavorable weather conditions, contributed to the poor performance. Uniqlo Japan's same-store sales, including online sales, declined by 1.3% compared to the previous year in August, marking a shift from the 4.3% increase witnessed in July.

Overall sales, including online sales, dropped by 2.2%, after an increase of 5.0% in the prior month. The company cited the adverse weather as the primary reason for the lower demand for summer items during August. Customer numbers at same stores, including online sales, fell by 9.1% year over year, while the average purchase per customer rose by 8.6%.

On a total-store basis, customer numbers declined by 10.2%, although average spending per customer increased by 8.9%. The August weakness followed a more robust July, when same-store sales surged due to strong demand for new products and summer items amid high temperatures throughout the month. Fast Retailing reported that one store opened and one closed during August.

Additionally, four stores that were temporarily shut for over a week, including three in Kumamoto Prefecture due to the July 28 earthquake and one in Chiba Prefecture affected by heavy rainfall on August 13, were excluded from the same-store sales calculation. Despite the August decline, Uniqlo Japan's same-store sales, including online sales, remained up by 5.1% for the year to August, and total sales, including online sales, increased by 5.5%, suggesting that the August drop has not yet significantly impacted the broader year-to-date trend.