Companies

Uniqlo's parent company posts revenue growth

Jul 20, 2023 Japan

The Japanese-based company posted a 21.4% increase in revenue from September 2022 to May 2023, as compared to the same period of last year, highlighting the performance of Uniqlo abroad in the third quarter

In the first nine months of the current fiscal year*, Fast Retailing's consolidated revenue amounted to 2.14 trillion Japanese yen (13.6 billion euros), up by 21.4% from the same period of the last fiscal year, and its operating profit rose sharply by 21.4% year-over-year to 330.5 billion Japanese yen (2.1 billion euros). It also reported a small increase of 0.3% in this period in the profit attributable to the owners, which was 238.5 billion Japanese yen (1.5 billion euros).

Third Quarter Results

The fashion retailer reported that in the third quarter of the year, its consolidated revenue increased by 23.8%, totalling 676.1 billion Japanese yen (4.3 billion euros), on a comparable basis to a similar period of the prior year, highlighting the good performance of Uniqlo internationally.

In Japan, from March to May 2023, Uniqlo's revenue rose by 8.1%, reaching 214.5 billion Japanese yen (1.4 billion euros), while its operating profit contracted by 5.7% to 32.3 billion Japanese yen (205.7 million euros), as compared to the same quarter in the last fiscal year.

But abroad, the clothing retail recorded a 38.0% revenue increase to 342.3 billion Japanese yen (2.2 billion euros), and an 89.5% operating profit growth to 61.4 billion yen (391.0 million euros), on a comparable basis to the third quarter of the previous year. The company noted that performance in Mainland China “exceeded expectations after generating a year-on-year rise in same-store sales of over 40%”, and that Southeast Asia, India & and Australia, as well as Europe and North America, recorded strong results.

Fast Retailing also posted a third quarter revenue increase of 21.7% for the GU segment, which amounted to 82.4 billion Japanese yen (524.8 million euros), and an operating profit rise of 50.6% to 12.7 billion Japanese yen (80.9 million euros), as compared to the same three months of 2022. Concerning global brands, despite a revenue growth of 16.5%, the segment “moved back into the black with the recording of an operating profit of 1.3 billion yen for the quarter”.

Outlook

The Japan-based company has raised its outlook for fiscal 2023, and is now anticipating a full year consolidated revenue of 2.73 trillion Japanese yen (17.4 billion euros), up by 18.6%, and 370.0 billion Japanese yen (2.4 billion euros) in operating profit, up by 24.4%, on a comparable basis to fiscal 2022. The profit attributable to the owners is, however, expected to decline by 4.9% year-over-year to 260.0 billion Japanese yen (1.7 billion euros).

*Fast Retailing's fiscal year runs from September through August.

1 Japanese yen = 0.0064 euros

Image Credits: grandeconsumo.com

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