Uniqlo Europe’s annual operating profits contracted following losses incurred from the refurbishment of its London flagship store.
Losses on the retirement of property, plant and equipment related to the renovation of the store at 311 Oxford Street hit profits at Uniqlo’s European operation.
Uniqlo-owner Fast Retailing reported it was hit by a ¥1.8bn (£9.8m) loss on the refurbishment at flagship stores in London and Shanghai.
The fashion retailer was also hit by a ¥16.1bn (£87m) of impairment losses relating to its J Brand premium denim label and its US stores.
Fast Retailing revealed profit before income taxes increased 48% year on year to ¥117.3bn (£636m) for the year ending August 31.
Consolidated revenues jumped 21.6% to ¥1.6817 (£9.1bn) trillion during the year, while consolidated operating profit increased 26.1% to ¥164.4bn (£892bn).
During the year it also accelerated store openings for its GU brand in Japan and launched the label in the Chinese market.
Fast Retailing believes the GU operation has “reached a key turning point in its growth and development into a second mainstream brand” for the group.
Within its international markets China, Hong Kong and Taiwan and South Korea proved to be the key drivers of growth by reporting “significant increases” in revenue and profit.
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