Following strong first-half growth: Uniqlo parent Fast Retailing raises profit forecast

Japanese retail group Fast Retailing Co. Ltd. concluded the first half of its 2024/25 fiscal year with record sales and earnings. Given the recent surprisingly positive performance, the parent company of the Uniqlo clothing chain raised its full-year profit forecast on Thursday.

In the first half, which ended on February 28, consolidated revenue amounted to 1.79 trillion Japanese Yen (11.1 billion euros, 12.2 billion dollars). This represents a 12 percent increase compared to the same period last year.

Uniqlo Achieves High Sales Growth in Europe and North America

Uniqlo's revenue in its Japanese home market increased by 11.6 percent to 541.5 billion Japanese Yen. The Uniqlo International segment saw even more dynamic growth, with sales increasing by 14.7 percent to 1.01 trillion Japanese Yen.

Losses in China were more than offset by strong growth in other international markets. Revenue in Europe rose by approximately 30 percent, exceeding expectations. In North America, the group achieved a sales increase of approximately 25 percent.

First-half revenue for the group's GU brand rose by 3.9 percent to 165.8 billion Japanese Yen. The other labels in the group, which include Theory, PLST, and Comptoir des Cotonniers, generated combined revenue of 67.7 billion Japanese Yen, 2.3 percent below the prior-year period.

Half-Year Profit Increases by 19 Percent

Thanks to strong sales growth and a slightly improved gross margin, operating profit increased by 18.3 percent to 304.2 billion Japanese Yen. Net profit attributable to shareholders reached 233.6 billion Japanese Yen (1.4 billion Euros) in the first half. This represents a 19.2 percent increase compared to the same period last year.

In light of the unexpectedly positive performance in recent months, management raised its earnings forecasts for the current fiscal year. The target for operating profit, previously 530.0 billion Japanese Yen, was increased to 545.0 billion Japanese Yen.

Furthermore, the group now expects net income attributable to shareholders of 410.0 billion Japanese Yen, up from the previous forecast of 385.0 billion Japanese Yen. The revenue forecast remains unchanged at 3.40 trillion Japanese Yen.