Uniqlo owner ups FY guidance as revenues jump 10%
In the nine months to 31 May, the company’s revenue increased by 10.4% year-on-year to ¥2.3trillion (£11bn), while operating profit rose 21.5% to ¥401.8bn (£1.9bn)
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Fast Retailing, owner of Uniqlo and Theory, has upped its full-year operating profit estimate by 24.6% to ¥475bn (£2.3bn).
In the nine months to 31 May, the company’s revenue increased by 10.4% year-on-year to ¥2.3trillion (£11bn), while operating profit rose 21.5% to ¥401.8bn (£1.9bn).
In Japan, in the three months through May 2024, revenue rose 10.4% to ¥236.9bn (£1.1bn) and operating profit expanded by 56.9% to ¥50.5bn (£246m). Same-store sales increased by 9 with sales of t-shirts, bra tops, and other ranges coinciding with “prevailing demand”.
In the international segment, revenue rose 19.5% to ¥408.8bn (£1.9bn) and operating profit increased 15.6% to ¥71bn (£346m).
However, the Greater China region reported a decline in revenue and a large decrease in profit. In the Mainland China market, sales declined and revenue contracted “sharply” due to “comparisons with a particularly strong performance in the previous year, declining consumer appetite, unseasonal weather, and product lineups that did not fully satisfy the needs of local customers”.
Meanwhile, Uniqlo North America and Europe experienced “large revenue and profit gains”. Southeast Asia, India and Australia reported a rise in revenue and a “significant” increase in profits. In South Korea the retailer reported “higher” revenue and profit.
In the nine months through May 2024, the international segment saw revenues grow 17.8% to ¥1.2trillion (£5.8bn) and a 20.6% operating profit increase to ¥221.9bn (£1bn).
For the fiscal year, the retailer now predicts that the international segment will achieve “significantly higher revenue and profit” in the second half of fiscal 2024 and the full business year, with the exception of the Greater China region where revenue is expected to decline during the second half of the year.
The Southeast Asia, India and Australia region, along with the North America and Europe regions, are expected to generate “considerable” increases in revenue and profit in the second half of fiscal 2024 and for the full business year, and operating profit margins for those regions are also predicted to improve year-on-year.
The company also expects to achieve a “record performance”, with consolidated revenue totalling ¥3.07trillion (£18bn), and a network of 3,604 stores by the end of August 2024.
