Fast Retailing sees fast profits; UNIQLO Japan FY24 operating profit surges 32.2%

 

【Financial Highlights by Fast Retailing】

■FY2024 consolidated results: Fast Retailing reports considerable full-year revenue and profit gains. Revenue tops 3 trillion yen and operating profit surpasses 500 billion yen

• FY2024 revenue: 3.1038 trillion yen (+12.2% year-on-year), operating profit: 500.9 billion yen (+31.4%), and profit attributable to owners of the parent: 371.9 billion yen (+25.6%). Revenue topped 3 trillion yen and operating profit surpassed 500 billion yen for the first time.
• We have been accelerating the diversification of our earnings pillars and establishing solid frameworks to facilitate stronger global earnings. In addition, UNIQLO brand visibility is expanding worldwide, and demand is growing not just among local customers, but tourists as well.
• We plan to offer a year-end dividend of 225 yen per share. When added to the 175 yen interim dividend, that would generate a scheduled annual dividend of 400 yen for FY2024, an increase of 110 yen compared with the previous year. 

 

■UNIQLO Japan: Full-year revenue increases, profit expands sharply, achieved a new record high

• FY2024 revenue: 932.2 billion yen (+4.7%), operating profit: 155.8 billion yen (+32.2%).
• FY2024 same-store sales increased 3.2% year-on-year on the back of a particularly strong 11.7% expansion in the second half. Sales of core Summer items proved strong. Revenue from overseas visitor demand also rose sharply.
• The full-year gross profit margin improved by 2.9 points thanks to stronger control over production orders, which reduced the impact of spot exchange rates used for additional production orders and resulted in an improvement in cost of sales and a reduction in the second-half discounting rate. 

■UNIQLO International: Large full-year revenue and profit increases. Operating profit margins expand to 15% or higher in all markets

• FY2024 revenue: 1.7118 trillion yen (+19.1%), operating profit: 283.4 billion yen (+24.9%). Achieved a record performance.
• Greater China reported a year-on-year rise in full-year revenue and a slight increase in operating profit. While the Mainland China market reported strong sales in the first half, second-half sales were lackluster. We are continuing to structurally reform business operations in the market through a scrap-and-build strategy of replacing smaller, less-profitable stores with large, better-located ones; enhancing branding and local store management; and other measures.
• UNIQLO South Korea reported higher full-year revenue and profits. UNIQLO Southeast Asia, India & Australia reported significant full-year revenue and profit gains.
• UNIQLO North America and UNIQLO Europe both generated large increases in revenue and profit on the back of growing customer support for LifeWear and strong sales.

■GU: Full-year revenue increases, profit expands sharply

• FY2024 revenue: 319.1 billion yen (+8.1%), operating profit: 33.7 billion yen (+28.9%).
• Same-store sales increased on strong sales of products that captured global mass fashion trends.
• Efforts to improve cost of sales resulted in a higher gross profit margin and a sharp increase in operating profit.
• Opened our first GU flagship store outside Japan in the United States in September 2024. Revenue has surpassed our expectations since the opening and the store is performing strongly.

■Global Brands: Full-year revenue declines, business profit contracts sharply

• FY2024 revenue: 138.8 billion yen (−2.0%), business profit: 0.1 billion yen (−76.2%), operating profit: 0.6 billion yen (compared with a 3.0 billion yen loss in FY2023). While operating profit moved into the black, this was the result of impairment losses recorded on the closure of unprofitable stores in FY2023.
• Theory reported higher revenue but a large contraction in profits. In local currency terms, Theory revenue declined on lackluster sales performances in both the United States and Asia.
• PLST reported significantly lower revenue due to a reduced store network. However, the gross profit margin improved significantly, and operating profit moved into the black.
• While Comptoir des Cotonniers reported significantly lower revenue, losses contracted as determined operational reforms improved overall cost structures.

■FY2025 consolidated business estimates: Expect revenue and profit to rise, with both measures generating record-high performances

• FY2025 consolidated revenue:3.4000 trillion yen (+9.5%), consolidated operating profit: 530.0 billion yen (+5.8%), profit attributable to owners of the parent: 385.0 billion yen (+3.5%).
• We forecast an annual dividend per share in FY2025 of 450 yen, split equally between interim and year-end dividends of 225 yen each. That represents an increase in the full-year dividend of 50 yen per share.