Fast Retailing, owner of Uniqlo, forecasts higher profits due to robust trading.
- The Japanese group reports increased revenues and profits, driven by a weak yen.
- Profit before tax saw a significant rise, bolstered by global operations.
- Strategic focuses include digital retail, sustainability, and brand expansion.
- Uniqlo aims to deliver high-quality, eco-friendly fashion with a focus on human capital.
Fast Retailing, the company behind popular fashion brand Uniqlo, has raised its forecasted operating profit for the year to ¥475bn (£2.27bn). This optimistic outlook follows a strong trading performance in the latter half of the fiscal year.
Over the nine-month period from September 2023 to May 2024, the group’s consolidated revenues climbed by 10.4% year on year, reaching ¥2.3665 trillion (£11.522 trillion). Operating profit also saw a notable rise of 21.5% to ¥401.8bn (£1.955bn). This growth was significantly supported by an increase in duty-free sales spurred by the yen’s decline, alongside signs of economic maturation in China.
The group’s profit before income taxes rose by 33% to ¥477.7bn (£2.325bn) year on year. This impressive performance was underpinned by strong revenue and profit gains across Uniqlo’s operations in North America, Europe, and South-east Asia. Additionally, Uniqlo Japan reported higher revenues and profits during the three-month period from March to May.
Fast Retailing’s total assets at the end of May 2024 stood at ¥3.6841 trillion (£17.934 trillion), marking an increase of ¥380.4bn (£1.851bn) compared to the previous fiscal year end. The company is concentrating on several strategic areas, including advancing digital consumer retailing, diversifying global income sources, and promoting business models that contribute to sustainability.
The group is set on expanding its GU segment, alongside other global brands such as Theory. Established in 2006, GU operates approximately 470 stores across Asia, with a strong presence in Japan. The group is also aiming to enhance product development and accelerate store openings, particularly for Uniqlo International, as part of strengthening its growth pillars.
Fast Retailing is committed to producing high-quality clothing that exerts minimal environmental impact, enduring long-term. They focus on creating circular clothing that can be reused or recycled and ensuring production happens in safe, healthy working environments.
Fast Retailing’s strategic initiatives and robust global performance indicate a promising future for the company.
