Japanese retail giant and the parent company of brands like Uniqlo, Fast Retailing announced strong first-half results and has increased its profit forecast for the full year.
The company's robust performance was primarily driven by strong sales at its flagship Uniqlo brand, both domestically in Japan and internationally. However, the crucial Chinese market presented ongoing challenges.
For H1, FY25 ending in February 2025, Fast Retailing's consolidated revenue grew by 12 per cent to ¥1.79 trillion (approximately $12.5 billion), while operating profit increased by 18.3 per cent to ¥304.22 billion. Net profit also rose significantly to ¥233.566 billion from ¥195.912 billion.
Consequently, the company now projects its full-year consolidated operating profit to increase by 8.8 per cent to ¥545 billion, with consolidated revenue expected to reach ¥3.4 trillion, a 9.5% rise.
The company reported strong first-half performance in Japan, North America, Europe, and Southeast Asia. Revenues of Uniqlo Japan increased by 11.6 per cent to ¥541.5 billion while operating profit expanded by 26.4 per cent to ¥97.6 billion. The brand’s comparable sales, including online, rose by 9.8 per cent, attributed to strategically aligning product development and marketing with weather conditions, leading to strong sales of year-round items and thermal wear, as well as increased sales to tourists. Improved gross profit margins, due to stricter discounting, also contributed.
The revenue of Uniqlo International increased by 14.7 per cent to ¥1.0141 trillion while operating profit expanded by 11.7 per cent to ¥168.5 billion. Southeast Asia, India and Australia, North America, and Europe reported particularly strong gains.
However, revenues in mainland China's fell by around 4 per cent while operating profit contracted by roughly 11 per cent due to weak consumer demand and an unsuitable product mix for varying regional temperatures. The brand’s revenues and profit from Hong Kong also declined, while Taiwan reported higher revenue and profit.
