Fast Retailing, the parent company of Uniqlo and Theory, has revised its full-year operating profit forecast upwards following strong trading results in the second half of the year.
- The Japanese retail giant reported a notable increase in both revenues and profits over a nine-month period ending in May 2024.
- Consolidated revenue rose by 10.4%, and operating profit increased significantly, driven by improved duty-free sales and favourable market conditions.
- Uniqlo’s international operations, especially in North America, Europe, and Southeast Asia, have shown remarkable profit and revenue growth.
- The company is focusing on digital retailing, diversifying earnings, and sustainable business development.
Fast Retailing, which oversees brands like Uniqlo and Theory, has updated its full-year operating profit forecast to ¥475 billion (£2.27 billion) after experiencing a robust performance in the latter half of the fiscal year. The update reflects strong sales and profitability achieved within a strategically important timeframe.
In the period from September 2023 to May 2024, Fast Retailing’s revenues surged by 10.4% year-on-year, reaching ¥2.3665 trillion (£11.522 trillion), while operating profit witnessed a significant increase of 21.5%, amounting to ¥401.8 billion (£1.955 billion). These gains were primarily driven by a boost in duty-free sales as tourists capitalised on favourable currency conditions presented by a devalued yen alongside positive economic signals from a maturing China market.
The company has seen high-performing Uniqlo operations across various regions, notably North America, Europe, and Southeast Asia. These regions reported substantial gains in revenue and profit, contributing to an overall record-setting performance for the group. Similarly, Uniqlo Japan experienced marked revenue and profit growth from March to May, further enhancing the company’s financial success.
As a result of these achievements, the profit before income taxes escalated by 33% year-on-year, reaching ¥477.7 billion (£2.325 billion). The total assets of Fast Retailing as of May 2024 stood at ¥3.6841 trillion (£17.934 trillion), showing a ¥380.4 billion (£1.851 billion) increase from the previous fiscal year-end.
Looking ahead, Fast Retailing is emphasising several strategic initiatives: advancing its digital consumer retailing infrastructure, diversifying its global revenue streams, implementing sustainable business models, expanding the GU segment alongside Theory and other brands, and reinforcing its workforce expertise. Notably, GU, a sister brand to Uniqlo, currently operates approximately 470 stores across Asia. Fast Retailing aspires to enhance product development and branding and increase the opening of high-quality stores internationally, aiming to produce sustainable apparel that is durable, environmentally friendly, and recyclable.
Fast Retailing’s robust performance and strategic focus aim to strengthen its position globally and drive sustainable growth.
