Retail Insight Network

UNIQLO owner Fast Retailing reports operating profit rose 28.2%

The company expects its consolidated revenue to increase 10.2% YoY to Y3.05trn in FY2024.

Fast Retailing, owner of Japanese retailer Uniqlo, has reported that its operating profit rose by 28.2% to Y381.1bn ($2.56bn) in fiscal year (FY) 2023.

The company generated a total revenue of Y2.76trn ($18.47bn) in FY23, up 20.2% year-on-year (YoY) compared to FY22.

During the fiscal year ending 31 August 2023, Uniqlo Japan's revenue grew 9.9% YoY to Y890.4bn while Uniqlo International's jumped 28.5% YoY to Y1.43trn.

Revenue of GU brands also grew 20.0% YoY to Y295.2bn over the fiscal.

In a statement, the company said: “Uniqlo International revenue surpassed 50% of total consolidated revenue for the first time and Uniqlo International operating profit accounted for roughly 60% of consolidated profit. Uniqlo International generated strong rises in both revenue and profit in all markets and we saw a clear diversification of our earnings pillars.”

Same-store sales of Uniqlo Japan increased by 7.6% YoY in FY23, driven by 10.0% YoY growth in the first half and 4.7% in the second half.

Fast Retailing registered a gross profit of Y1.43trn in FY23, which accounted for 51.9% of total revenue.

Uniqlo Japan posted an operating profit of Y117.8bn in FY23, an increase of 9.2% YoY and the operating profit of Uniqlo International was Y226.8bn, up 43.3% YoY.

For fiscal 2024, Fast Retailing expects to achieve consolidated revenue growth of 10.2% YoY to Y3.05trn.

It also expects an operating profit of Y450.0bn and a profit before income taxes of Y480.0bn.

The retailer also plans to strengthen its store portfolio to reach 3,660 stores by the end of August 2024, including 800 Uniqlo Japan stores and 1,744 Uniqlo International stores.

Fast Retailing said: “Looking at the future outlook for individual business segments in fiscal 2024, we expect UNIQLO Japan will generate higher revenue and profit and UNIQLO International will generate large increases in both revenue and profit and continue to expand its operations around the globe. We expect our GU segment will achieve higher revenue and profit while the Global Brands segment is expected to report higher revenue and a move into the black.”