Uniqlo’s popularity with Gen-Z boosts FY profits by 57% to €221.7m

Uniqlo’s European operations has seen its profits jump by 57.5% to €221.7m (£185.4m) in the year to 31 August 2024, thanks to the retailer’s popularity with Gen-Z shoppers. 

Turnover at the Japanese clothing retailer has continued to increase year-on-year by 30%, meaning that its gross profit margin has been maintained at a fairly stable level, with positive growth of €268m (£224m). 

As a result, there was an operating profit rise of 49.8% to €283.2m (£236.8m) as well as due to the company’s continued efforts to review operational costs.

During the year, Uniqlo opened seven new stores – compared with three in 2023 – including its first in Luxembourg that year. Two existing stores were also reopened following refurbishments and a pop-up store at the Louvre in Paris was opened for a few months. 

According to the retailer, its financial performance shows its continued growth in the European market. Uniqlo has expressed its confidence in its future performance. 

Uniqlo has attributed its success to European customers’ enthusiasm for its LifeWear products that “reflect the Japanese values of simplicity, quality and longevity”.

There has also been a “significant” increase among the younger customer base who have embraced items like the mini-round shoulder bag, bra-top and pleated trousers that “went viral” during the summer. 

Uniqlo has called its regional flagship stores across key European cities “destinations to showcase the core product line-up”, alongside displaying all of its local and global sustainability initiatives. 

Recent additions to the store portfolio include Edinburgh in Scotland and Rome in Italy.