Companies

Parent company of Uniqlo posts solid performance

Jan 19, 2024 Japan

Fast Retailing posted a revenue growth of 13.2% in the three months to the start of November 2023, as compared to the same period of 2022, driven by the performance of Uniqlo abroad

In the first quarter of fiscal 2024, the Japanese-based company’s consolidated revenue amounted to 810.8 billion yen (5.03 billion euros), reflecting an increase of 13.2%, on a comparable basis to the same period of last fiscal year. In addition, its operating profit rose by 25.3% to 146.6 billion yen (910.9 million euros) and the profit attributable to the owners grew by 26.7% to 107.8 billion yen (669.9 million euros), as compared to the first quarter of fiscal 2023.

From August to October 2023, Uniqlo Japan contributed 244.5 billion yen (1.5 billion euros), up by 1.5%, to the group’s total revenue and its operating profit was 46.5 billion yen (288.9 million euros), up by 18.0%, on a comparable basis to a similar period of the previous year. Fast Retailing highlighted that this business segment “struggled during unusually warm September and October weather, but "achieved large revenue gain in November on strong sales of thermal winter clothing and a buoyant Uniqlo anniversary sale”.

Abroad, Uniqlo reported solid sales and profit growth, particularly in North America and Europe. Overall, in the first quarter of the current year, sales in the Uniqlo International segment increased by 23.3%, reaching 441.3 billion yen (2.74 billion euros), while its operating profit rose by 35.8%, totalling 77.8 billion yen (483.4 million euros), as compared to the same period of last year.

The GU segment recorded a first quarter revenue growth of 10.7% to 87.8 billion yen (545.6 million euros) and an operating profit increase of 16.4% to 12.3 billion yen (76.4 million euros), on a comparable basis to a similar period of fiscal 2023. “Sales struggled in September and October but picked up strongly in November as we ensured ample stock of strong-selling Winter items”, explained Fast Retailing.

In contrast to the other segments, from August to October 2023, Global Brands’ revenue fell by 2.4% year-over-year to 36.6 billion yen (227.4 million euros), and its operating income declined by 43.9% year-over-year to 0.3 billion yen (1.9 million euros).

Outlook

Fast Retailing has maintained its previous estimates for fiscal 2024. It expects a full year consolidated revenue of 3.05 trillion yen (19.0 billion euros), up by 10.2%, a consolidated operating profit of 450.0 billion yen (2.8 billion euros), up by 18.1%, and a profit attributable to the owners of 310.0 billion yen (1.9 billion euros), up by 4.6%, as compared to fiscal 2023.

1 yen = 0,0062 eur

Image Credits: apparelresources.com

Japan Companies Fashion Fast Retailing Quarter Results Results