Fast Retailing reaches ¥3 trln in FY24, driven by Uniqlo's global growth

Investing.com -- Fast Retailing Co. (OTC:FRCOY ) (TYO:9983 ), the parent company of Uniqlo, reported strong financial results for FY2024, ending August 31, 2024. 

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

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

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

Uniqlo Japan saw 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% to ¥1.71 trillion. Profit also increased by 24.9%, supported by strong performances across most global markets. 

Additionally, Uniqlo operations in North America and Europe recorded double-digit revenue and profit increases, highlighting the growing popularity of Uniqlo’s LifeWear in these regions. 

Operating profit margins exceeded 15% in all major markets. However, growth in China was more subdued, 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, reaching ¥319.1 billion, and a 28.9% rise in operating profit. 

This sharp improvement was due to better cost management and strong sales of products that captured global fashion trends.

Meanwhile, the Global Brands segment struggled, with revenue dropping 2% to ¥138.8 billion. Business profit plummeted by 76.2%, largely due to the reduced number of stores, especially within the Theory and PLST labels. 

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

Source: Investing.com