Fast Retailing Hits ¥3B in FY24 Driven by Uniqlo’s Global Growth By Investing.com

Investing.com — Fast Retailing Co. (OTC:) (TYO:), the parent company of Uniqlo, reported solid financial results for the 2024 financial year ending August 31, 2024.

The company posted growth in both revenue and profit, marking a pivotal year in its global expansion.

Consolidated revenue rose 12.2% to ¥3.1 trillion, breaking the ¥3 trillion barrier for the first time, while operating profit rose 31.4% to ¥500.9 billion.

The impetus was driven by Uniqlo’s continued growth, both in its domestic and international operations.

Uniqlo Japan posted a 4.7% increase in revenue, totaling ¥932.2 billion. The brand benefited from a successful summer season where demand for key products remained high.

An increase in sales to tourists visiting Japan also contributed to the results. Operating profit rose sharply by 32.2%, helped by improved production controls and reduced discounting.

Uniqlo International reported growth, with revenue up 19.1 percent to ¥1.71 trillion. Profit also increased by 24.9%, supported by strong performances in most global markets.

In addition, Uniqlo’s North American and European operations posted double-digit revenue and profit increases, highlighting the growing popularity of Uniqlo LifeWear in these regions.

Operating profit margins exceeded 15% in all major markets. However, growth in China was more muted, with only a slight increase in profit due to a weaker second half.

GU, another core brand of Fast Retailing, reported an 8.1% increase in revenue to ¥319.1 billion and a 28.9% increase in operating profit.

This significant improvement was due to better cost management and strong product sales that captured global fashion trends.

Meanwhile, the Global Brands segment struggled, with revenue falling 2 percent to ¥138.8 billion. Business profit fell 76.2%, largely due to reduced store numbers, particularly under the Theory and PLST labels.

Despite these challenges, operating profit turned positive, although this was partly due to one-off gains from restructuring.