Fast Retailing Co has reported a 55.1% profit tumble over September to February, the first drop in half year profit in five years.
Operating profit fell 33.8 percent to ¥99.34 billion (AU$1.19 billion).
Consolidated revenue reached JP¥1.0116 trillion and profit ¥99.3 billion (US$1.535 billion).
The drop was attributed to two straight years of price increases, poor sales of winter ranges and lower gross margin.
Did Australia contribute to the loss?
The group's international operations under Uniqlo reported a rise in revenue but a sharp decline in operating profit.
In the first half of fiscal 2016, Uniqlo International generated revenue of ¥389.2 billion (+12.7% year on year) and operating profit of ¥29.4 billion (-31.4% year on year).
Profits declined across Greater China, South Korea and the US, impacted by warm winter weather and sluggish economic conditions.
Uniqlo Oceania, which includes Australia, broke the trend however and reported gains in both revenue and profit.
Within its global brands segment, Fast Retailing's low-priced GU fashion casualwear label also reported a significant revenue and profit rise.
GU reported double-digit growth in same-store sales on the back of strong sales of heavily advertised knitwear, and trendy bottoms such as wide pants and jogging pants.
A successful launch of spring 2016 ranges in the traditionally less buoyant months of January and February also helped improve GU's gross margin, and significantly boost operating profi