Fast Retailing said its FY24 (September 2023 to August 2024) performance “outstripped expectations to reach new record high” with “sharp increases in revenue and profit”.
Fast Retailing’s group revenue increased 12.2% to JPY3.1tn, up from JPY2.76tn in 2023, while operating profit increased 31.4% to hit JPY500.9bn.
Its Uniqlo brand, which had previously struggled in Japan, saw a 50.8% improvement in its gross profit margin with Fast Retailing explaining that international awareness of its Uniqlo brand is also growing.
It stated that both Uniqlo Japan and international generated strong performances that outstripped its latest full-year business estimates announced in July.
Fast Retailing added Uniqlo had an “extremely strong performance based on an expanded local customer base and additional tourist-driven demand in each market.”
GlobalData apparel analyst Louise Deglise-Favre told Just Style exclusively Fast Retailing’s overall success was “driven by the Uniqlo brand” in Japan but it has also “continued to excel in Europe and America”.
She continued: “The brand’s product offering continues to appeal to international consumers thanks to its simple designs and its value for money credentials.”
Fast Retailing FY24 key results
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Group revenue increased to JPY3.1tn from JPY2.76tn in 2023
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Operating profit went up to JPY500.9bn from JPY381bn in 2023
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Net income was JPY56.2bn.
Internationally, Uniqlo saw revenue up and a slight rise in profit in the greater China region, while South Korea, South East Asia, India and Australia enjoyed large revenue and profit gains.
Uniqlo had a large revenue increase of 32.8% in North America to JPY217.7bn and its operating profit rose 65.1% to JPY34.8bn.
It was a similar positive story in Europe with a large revenue increase of 44.5% to JPY276.5bn and a 70.1% operating profit climb to JPY46.5bn.
Fast Retailing’s Gu brand saw its revenue rise and a sharp profit increase, which was roughly in line with its plan. Its revenue was up 8.1% to JPY319.1bn. and operating profit was 28.9% up to JPY33.7bn.
Fast Retailing FY25 guidance
Fast Retailing expects a record performance on higher revenue and profit in FY25 with an estimated 9.5% rise in revenue to JPY3.4tn and a 5.8% rise in operating profit to JPY530bn.
Fast Retailing said it hopes to generate qualitative improvements in all aspects of its business in FY25 to achieve sustainable business growth and become a truly global company.
It plans to do this by strengthening investment in human capital, progressing the development of a digital consumer retailing industry, accelerating the expansion of global operations, expanding Gu and global brands, and pursuing a business model in which the development of business contributes to sustainability.
Last year Fast Retailing saw its annual profit rise 28% to hit a new record in FY23 with Fast Retailing saying at the time that Uniqlo International generated “strong rises” in both revenue and profit across all its markets.
“Fast Retailing’s record FY24 sees Uniqlo return to growth in home market” was originally created and published by Just Style, a GlobalData owned brand.
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