Fast Retailing, the parent company of Uniqlo, has increased its full-year profit forecast after a robust second half of trading.
- The company reported a 10.4% increase in consolidated revenue year over year, reaching ¥2.3665 trillion.
- Operating profit surged by 21.5% to ¥401.8 billion, driven by a rise in duty-free sales from tourists.
- Uniqlo’s operations in North America, Europe, and Southeast Asia showcased strong performance, significantly boosting revenue and profit.
- The retail group is focusing on digital retail development, global diversification, sustainability, and brand expansion.
Fast Retailing, the parent company of Uniqlo and Theory, has elevated its full-year operating profit forecast to ¥475 billion due to a robust second half of trading. Over the nine months ending May 31, 2024, the Japanese retail giant saw a substantial 10.4% growth in consolidated revenue, reaching ¥2.3665 trillion. Additionally, the company experienced a significant 21.5% increase in operating profit, totaling ¥401.8 billion. This growth was primarily propelled by a boost in duty-free tourist sales, facilitated by the yen hitting a 38-year low, and maturation in the Chinese market.
The company’s strong performance was notably evident in Uniqlo’s operations across North America, Europe, and Southeast Asia. These regions reported large revenue and profit gains, with Uniqlo Japan also posting significantly higher figures for the three months from March to May. Collectively, these results contributed to an overall record performance for Fast Retailing on a consolidated basis. Consequently, profit before income taxes climbed 33% year over year, reaching ¥477.7 billion.
By May 31, 2024, Fast Retailing’s total assets had grown to ¥3.6841 trillion, marking an increase of ¥380.4 billion compared to the previous fiscal year’s end. The company attributed these solid results to Uniqlo Japan and Uniqlo International’s strong performance in key regions. As reported by Reuters, Fast Retailing detailed its strategic focus on advancing digital consumer retail, diversifying global income sources, pursuing sustainable business models, expanding the GU brand, and enhancing human capital.
Established in 2006, GU, as Uniqlo’s sister brand, operates approximately 470 stores across Asia, primarily in Japan. Fast Retailing aims to augment product development, fortify branding, and expedite high-quality store openings, particularly at Uniqlo International, which the group views as a growth pillar. The company’s commitment emphasizes creating durable, environmentally friendly clothing produced in safe workplaces, and promoting circular fashion by encouraging the recycling and reuse of apparel.
Fast Retailing’s strategic focus on innovation and global expansion underpinned its record performance and optimistic profit outlook.
