Fast Retailing (Uniqlo) has achieved remarkable sales and profit growth in the first half of its fiscal year 2024. The Japanese apparel retailer performed particularly well in Europe and North America.
Slower at home
In the period from 1 September 2023 to 29 February 2024, sales grew by 9 % to 1.6 trillion Japanese yen (9.7 billion euros). This growth mainly came from strong sales outside Japan, which rose 17 % to 883.9 billion yen. The 2 % decline in sales in the Japanese home market was more than offset by record performance from operations in North America and Europe.
Operating profit also jumped sharply, helped by profit improvements at Uniqlo in Japan, Europe and North America. On its home market, profits rose 14.7 % to 77.2 billion yen, while international profits grew 23 % to 150.9 billion yen.
Less dependent
The results are in line with Fast Retailing’s earlier forecasts, in which the company assumed significant sales and profit increases in North America and Europe for the first half of the 2024 financial year. The year ran “almost exactly according to plan”, the retailer said. Expectations for full-year results remain equally positive.
The strategy of focusing on international growth, particularly in Europe and North America, seems to be paying off. This approach has led not only to financial growth, but also to a diversification of revenue sources, making the company less dependent on the Japanese market.
