Fast Retailing ups forecast, plans to increase dividend

In the nine months period, Fast Retailing’s revenue totaled 2.3665 trillion yen, up 10.4 percent, while operating profit rose to 401.8 billion yen, up 21.5 percent and profit attributable to owners of the parent increased to 312.8 billion yen, an increase of 31.2 percent.

In the third quarter, the company said, strong performances from Uniqlo operations in the North America, Europe, and Southeast Asia regions, as well as Uniqlo Japan, helped fuel the record consolidated results.

For FY24, the company forecasts a record performance and plans to increase annual dividend by 110 yen.

Uniqlo Japan reports 10.4 percent revenue rise in Q3

Uniqlo Japan’s third quarter revenue rose to 236.9 billion yen, up 10.4 percent and operating profit expanded to 50.5 billion yen, an increase of 56.9 percent. Same-store sales increased by 9 percent.

The company added that sales of t-shirts, bra tops and other ranges were strong as the timing of product launches coincided perfectly with prevailing demand.

In the nine months through May 2024, revenue rose 1.7 percent to 722 billion yen and operating profit expanded by 28.3 percent to 127.8 billion yen.

Uniqlo International’s revenue rose to 408.8 billion yen, up 19.4 percent and operating profit increased to 71 billion yen, up 15.6 percent. The Greater China region reported a decline in revenue and a large decrease in profit.

In the Mainland China market, sales declined and revenue contracted sharply due to comparisons with a particularly strong performance in the previous year, declining consumer appetite, unseasonal weather, and product lineups that did not fully satisfy the needs of local customers.

Revenues in North America, Europe, Southeast Asia, India, Australia and South Korea reported a rise in revenue and an increase in profits.

In the nine months period, revenue totaled 1.2928 trillion yen, up 17.8 percent and operating profit totaled 221.9 billion yen, up 20.6 percent.

Review of GU and Global Brands results

Third quarter revenue at GU rose to 86.8 billion yen, up 5.4 percent and operating profit increased to 14.1 billion yen, up 10.9 percent. The brand’s revenues in the nine month period were 246.4 billion yen, up 8.1 percent and operating profit totaled 29.4 billion yen, up 4.2 percent.

Global Brands third quarter sales declined to 34.3 billion yen, down 5.1 percent and business profit decreased to 1.2 billion yen, down 29.6 percent.

The company added that Theory reported a slight decline in revenue and a large decline in profit due to insufficient control of personnel costs and other business expenses. PLST and Comptoir des Cotonniers reported lower revenue on reduced store numbers. PLST reported profit gains and Comptoir des Cotonniers narrowed operating loss for the quarter.

In the nine months, the segment reported a 2.5 percent decline in revenue to 103.7 billion yen and an operating loss of 0.3 billion yen compared with the previous year’s operating profit of 1.4 billion yen.

Revising its estimates for the year ahead, Fast Retailing said it now expects consolidated revenue to total 3.0700 trillion yen, up 11 percent, operating profit to rise to 475 billion yen, up 24.6 percent and profit attributable to owners of the parent to total 365 billion yen, an increase of 23.2 percent.

The company forecasts an annual dividend per share of 400 yen, split into an interim dividend of 175 yen and a year-end dividend of 225 yen.