Uniqlo owner Fast Retailing sees annual sales top 3trn yen

10th Oct 2024 10:58

(Sharecast News) - Fast Retailing, the Japanese clothing conglomerate and owner of Uniqlo, published record annual profits on Thursday that beat both consensus and the company's own forecasts, as group turnover topped 3trn yen for the first time.

The Yamaguchi-based holding company, reported a net profit of 372bn yen (£1.9bn) for the year to August, up 26% on last year and well ahead of the JPY355bn expected by the market.

Revenues were up 12% at JPY3.10trn, being the JPY3.07trn consensus estimate, helped by a strong growth from Uniqlo's international operations, which make up more than half of group turnover.

Uniqlo international sales rose 19% to JPY1.71trn, helped by strong performances in North America and Europe, though sales in China were said to be "lackluster" in the second half. Meanwhile the brand's domestic revenues were up nearly 5% at JPY932bn.

Fast Retailing's other large department, discount retailer GU, increased revenues by 8% to JPY319bn, while its Global Brands arm - which combines its other brands Theory, J Brand, Comptoir Des Cotonniers, Princesse Tam.Tamm and PLST - saw sales fall 2% to JPY139bn.

"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," the company said in a statement.

Looking ahead, Fast Retailing is targeting JPY3.4trn in revenue this year, representing growth of 9.5%, and a 3.5% rise in net profit to JPY385bn.

Shares finished 1.3% higher at JPY51,360 in Tokyo.