Japanese fashion group Fast Retailing has managed to raise its net profit by a quarter last financial year, as its main subsidiary Uniqlo performed particularly strongly – both in Japan and abroad.
Third record in a row
Despite a difficult fashion market, Fast Retailing posted record profits for the third time in a row in its 2023/2024 financial year. Net profit rose by 25.6 % to 371.9 billion yen (2.3 billion euros), operating profit even by 31.4 %. Sales climbed 12.2 % to 3.1 trillion yen (20 billion euros), courtesy of Uniqlo in international markets.
Uniqlo’s sales abroad accounts for more than half of the group’s total sales: sales in international markets rose 19.1 % to 1.7 trillion yen (10 billion euros). Particularly strong results were recorded in Europe, North America and Southeast Asia. In these regions, operating profit margins rose to at least 15 %.
Little sister
Just last week, Uniqlo opened its first Re.Uniqlo Studio in the Benelux, in a new location in Amsterdam. In that studio, customers can have their clothes repaired and personalised, both for reasons of sustainability and to promote customer engagement.
Another subsidiary, Gu, is also on the rise: the label works with lower prices and was until recently only present in the Japanese market, but it has opened its first foreign shop in New York in September. Gu ended the financial year with sales of 319.1 billion yen (1.9 billion euros), up 8.1 %.
Looking ahead to the next financial year, Fast Retailing expects further sales growth of 9.5 % and operating profit growth of 5.8 % to 530 billion yen. The company continues to focus on international expansion and innovation within its brand portfolio.
