Japanese clothing brand UNIQLO’s parent company Fast Retailing has posted strong results for the first quarter (Q1) of fiscal 2025 (FY25), with consolidated revenue rising by 10.4% year-on-year (YoY), reaching Y895.1bn ($5.665bn) compared to Y810.8bn in the same period last year.
Business profit, which reflects true profitability by subtracting cost of sales and SG&A expenses from revenue, increased by 11.0%, totalling Y156.9bn.
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However, the company’s operating profit saw a more modest increase of 7.4%, reaching Y157.5bn, affected by the foreign exchange factors.
During the quarter ending 24 November 2024, UNIQLO delivered robust performance across Australia, Europe, India, Japan, North America and Southeast Asia.
In Japan, UNIQLO’s revenue for Q1 FY25 was Y266.6bn, reflecting a 9.0% increase from Y244.4bn in the same period last year. The business’ operating profit also rose by 12.1%, reaching Y52.1bn.
Same-store sales in Japan grew by 7.3%, although the gross profit margin contracted by 0.2% due to slightly higher discounting.
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By GlobalDataUNIQLO International saw a revenue increase of 13.7%, reaching Y501.7bn in Q1 FY25, up from Y441.3bn in Q1 FY24.
Its operating profit for international operations also rose by 7.4%, totalling Y83.5bn.
The company reported significant revenue and profit growth in Southeast Asia, India, and Australia, as well as in North America and Europe.
However, Greater China experienced a decline in both revenue and profit.
In Mainland China, revenue and profits experienced a notable decline, driven largely by the company’s inability to adapt its product assortment to the region’s milder winter climate. Furthermore, there was a failure to effectively cater to the diverse needs of local markets with tailored offerings.
Meanwhile, the GU brand saw a 3.1% increase in revenue, reaching Y90.6bn, but its operating profit fell by 20.2%, reaching Y9.8bn.
Same-store sales at GU remained flat year-on-year, impacted by the brand’s inability to develop trending products that are not affected by fluctuating temperatures, coupled with shortages of popular items.
For full year 2025, Fast Retailing has maintained its original fiscal 2025 forecasts, first announced in October 2024.
The company continues to project consolidated revenue of Y3.4tn, reflecting a 9.5% YoY increase and consolidated operating profit to grow by 5.8% to Y530.0bn.
Profit attributable to owners of the parent company is expected to be Y385bn, up 3.5% YoY.
