Fast Retailing Posts Record-high Performance for Third Consecutive Year
TOKYO — Fast Retailing said Thursday that it posted a record-high performance for the third consecutive year, boosted by strong sales at the Uniqlo International segment, which made up more than half of the company’s overall revenue for the first time.
The Uniqlo parent’s net profit for the 12 months ended Aug. 31 grew by 8.4 percent compared with the previous year, for a total of 296.2 billion yen, or about $2 billion.
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The company’s yearly operating profit gained 28.2 percent on the year, coming in at 381 billion yen.
Fast Retailing said sales for the period totaled 2.77 trillion yen, representing year-on-year growth of 20.2 percent.
Among the retailer’s various business segments, Uniqlo International reported strong growth in both sales and operating profit. Its revenue rose by 28.5 percent to 1.44 trillion yen, representing over half of the group’s total sales for the first time on an annual basis.
Uniqlo North America’s yearly sales gained 43.7 percent to 163.9 billion yen, while sales from Uniqlo Europe were up by 49.1 percent to total 191.3 billion yen. Strong growth also came from the Greater China market, where sales rose by 15.2 percent to 620.2 billion yen, and the South Korea, Southeast Asia, India and Australia segment saw sales growth of 46.1 percent, coming in at 449.8 billion yen.
Uniqlo also performed well in its home market of Japan, where sales were up by 9.9 percent to 890.4 billion yen.
“Full-year same-store sales, including online sales, rose by 7.6 percent from a year ago,” Fast Retailing said in a statement regarding its Uniqlo business in Japan. “In the first half of the fiscal year, same-store sales grew a strong 10 percent thanks to strong sales of Heattech innerwear and other winter items. Same-store sales increased by 4.7 percent in the second half, with the help of strong sales of Airism innerwear, AirSense and Pleated Pants. E-commerce sales increased by 2.3 percent for the full year to 133.8 billion yen, with a 15.0 percent share of total revenue.”
Fast Retailing’s GU brand, which is trendier and lower priced than Uniqlo, saw sales grow by 20 percent from a year ago, totaling 295.2 billion yen. The company’s Global Brands segment, which includes Theory, Princesse Tam Tam and Comptoir des Cotonniers, among others, posted a sales increase of 15 percent to 141.6 billion yen.
At a press briefing in Tokyo on Thursday, Fast Retailing’s chairman, president and chief executive officer Tadashi Yanai said the company is targeting total revenue of 10 trillion yen in the future.
“We will get there one item by one item, one store by one store,” Yanai said.
He also mentioned that the high quality and innovation of Japanese textiles are central to Fast Retailing’s success, and that the company aims to create a sense of Japanese aesthetics that resonates around the world.
Yanai, who is 74 years old, also said that the company is building a multilayered management team that will lead to a succession plan for his eventual retirement. At the media briefing, Yanai was joined by Daisuke Tsukagoshi, who was appointed executive director, president and chief operating officer of Uniqlo Co. Ltd. from September. The elder executive said while he will continue to be very involved in the day-to-day operations of Uniqlo worldwide, Tsukagoshi is one of his potential successors. Yanai has not yet revealed his retirement or a clear succession plan.
Fast Retailing also released guidance for its current fiscal year, ending Aug. 31, 2024. It is forecasting net profit will grow by 4.6 percent to 310 billion yen.
The retailer expects operating profit for the year to gain 18.1 percent, for a total of 450 billion.
The company is predicting its yearly revenue will reach 3.05 trillion yen, an increase of 10.2 percent over the previous year.
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