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During the nine months, Fast Retailing achieved revenue of ¥2.3665 trillion, marking a 10.4% increase. Operating profit surged to ¥401.8 billion, up by 21.5%, and profit attributable to owners of the parent climbed to ¥312.8 billion, reflecting a substantial 31.2% rise.
After a challenging period, Uniqlo’s operations in North America, Europe, and Southeast Asia rebounded strongly in Q3, contributing to record company-wide results alongside a solid performance from Uniqlo Japan.
Projecting a record-breaking FY24, Fast Retailing is boosting its annual dividend by ¥110, demonstrating confidence in its future performance.
Uniqlo Japan reports 10.4 percent revenue rise in Q3
In the third quarter, Uniqlo Japan’s revenue grew to ¥236.9 billion, marking a 10.4% increase, while operating profit expanded to ¥50.5 billion, reflecting a significant 56.9% rise. Additionally, same-store sales saw a notable increase of 9%.
The company noted that sales of t-shirts, bra tops, and other product ranges were robust, benefiting from timely product launches that aligned perfectly with current demand trends.
For the nine months ending in May 2024, Fast Retailing’s revenue grew by 1.7% to ¥722 billion. Operating profit also grew significantly, rising 28.3% to ¥127.8 billion.
Uniqlo’s international business (outside of Japan) thrived in Q3, with revenue surging 19.4% to ¥408.8 billion and operating profit climbing 15.6% to ¥71 billion. However, the Greater China region faced a setback, experiencing both a decline in revenue and a significant drop in profit.
Uniqlo’s Mainland China market faced a significant sales slump in Q3. This decline can be attributed to several factors: a tough comparison against a solid performance in the previous year, a decrease in consumer spending, unseasonal weather patterns, and product offerings that didn’t resonate well with local customer preferences.
Uniqlo saw a surge in both revenue and profits across a broad swathe of its international markets, including North America, Europe, Southeast Asia, India, Australia, and South Korea.
Uniqlo delivered strong financial results for the nine months ending May 2024. Revenue surged 17.8% to ¥1.2928 trillion while operating profit climbed 20.6% to ¥221.9 billion.
Beyond Uniqlo: GU and Global Brands
GU’s third-quarter revenue climbed 5.4% to ¥86.8 billion, with operating profit rising 10.9% to ¥14.1 billion. This momentum continued over the nine-month period, where revenue grew 8.1% to ¥246.4 billion while operating profit increased 4.2% to ¥29.4 billion.
While GU thrived, Global Brands experienced a setback in Q3. Sales dipped 5.1% to ¥34.3 billion, and business profit suffered a steeper decline of 29.6% ¥1.2 billion. This suggests that Global Brands may require additional focus to improve its performance in the coming quarters.
Revenue experienced a slight decline, while profit saw a significant drop due to issues with personnel costs and other business expenses. The company will need to address these areas for improvement.
During the nine months, the segment experienced a 2.5% decline in revenue, amounting to ¥103.7 billion, and reported an operating loss of ¥0.3 billion. This contrasts with the previous year’s operating profit of ¥1.4 billion.
Fast Retailing is projecting a solid year ahead, revising its financial estimates upwards. The company now expects consolidated revenue to reach ¥3.0700 trillion, reflecting an 11% increase. Operating profit is anticipated to climb 24.6% to ¥475 billion, and profit attributable to parent company owners is forecast to rise 23.2% to ¥365 billion.
The company projects an annual dividend per share of 400 yen, consisting of an interim dividend of ¥175 and a year-end dividend of ¥225.
