Companies

Uniqlo fuels growth for Fast Retailing

Jul 22, 2024 Japan

The Japanese fashion retailer has posted a large increase in revenue and profits in the first nine months of its current fiscal year, driven by strong performances from Uniqlo across almost all regions

In the nine months to the 31^stof May, the company’s consolidated revenue reached 2.37 trillion yen (13.8 billion euros), an increase of 10.4% on a comparable basis to the same period of fiscal year 2022-2023. In addition, Fast Retailing’s operating profit in these months rose by 21.5% year-on-year to 401.8 billion yen (2.4 billion euros) and profit attributable to owners rose by 31.2% year-on-year to 312.8 billion yen (1.8 billion euros).

Divisions

In Japan, strong sales of Uniqlo’s Summer ranges contributed to a revenue growth of 10.4% to 236.0 billion yen (1.4 billion euros) in the first nine months of the year, as compared to the same period year. Notably, Uniqlo Japan recorded a 56.9% year-on-year increase in operating profit to 50.5 billion yen (295.8 million euros).

Between August 2023 and May 2024, Uniqlo’s international division recorded a revenue increase of 17.8% to 1.29 trillion yen (7.6 billion euros), on a comparable basis to a similar period of the previous year, driven by strong performances from North America, Europe, and Southeast Asia. Operating profit rose by 20.6% year-on-year to 221.9 billion yen (1.3 billion euros).

The fashion retailer only underperformed in Mainland China, especially from March to May. Sales declined due to comparisons with a particularly strong performance in the previous year, reduced consumer appetite, unseasonal weather and product ranges that did not fully meet local customer needs.

In the first nine months of the current year, GU’s revenue increased by 8.1% year-on-year to 246.4 billion yen (1.4 billion euros) and operating profit increased by 14.2% year-on-year to 29.4 billion yen (172.1 million euros). In contrast, Global Brands recorded a 2.5% year-on-year decline in revenue to 103.8 billion yen (608.0 million euros) and an operating loss of 0.3 billion yen (compared with an operating profit of 1.4 billion yen (8.2 million euros) in the previous year).

Full Year Outlook

Fast Retailing has raised its full year guidance and now expects consolidated revenue of 3.07 trillion yen (18.0 billion euros), up by 11% year-on-year, operating profit of 475.0 billion yen (2.8 billion euros), up by 24.6% year-on-year, and profit attributable to owners of the company of 365.0 billion yen (2.1 billion euros), up by 23.2% year-on-year.

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Image Credits: drapersonline.com

Japan Fashion Fast Retailing Quarter Results Results