Uniqlo owner Fast Retailing records 28.2 percent profit growth

Fast Retailing recorded FY2023 revenue of 2.7665 trillion yen, up 20.2 percent and operating profit of 381 billion yen, up 28.2 percent. Profit attributable to owners of the parent rose 8.4 percent to 296.2 billion yen.

The company said in a statement that Uniqlo International revenue surpassed 50 percent of total consolidated revenue for the first time, and its operating profit accounted for roughly 60 percent of consolidated profit.

The company plans to offer a year-end dividend of 165 yen per share. When added to the 125 yen interim dividend, that would generate a scheduled annual dividend of 290 yen for FY2023, an increase of 83 yen compared to the previous year.

Uniqlo Japan and Uniqlo International report full-year revenue and profit gains

Uniqlo Japan’s full year revenue reached 890.4 billion yen, up 9.9 percent, while operating profit was 117.8 billion yen, an increase of 9.2 percent.

The segment’s same-store sales increased 7.6 percent with first-half same-stores sales increasing 10 percent on the back of strong sales of winter items. Second-half same-store sales rose 4.7 percent on strong sales of Airism innerwear, AirSense (ultra light) jackets, and other products.

Uniqlo International revenue of 1.4371 trillion yen, rose 28.5 percent and operating profit of 226.9 billion yen, jumped 43.3 percent.

The company added that the Greater China region achieved a record full-year performance by generating significant increases in both revenue and profit. While sales struggled in the first-half due to Covid-19, second-half performance recovered by a greater extent than we had expected.

South Korea, Southeast Asia, India and Australia reported higher revenue and profit, with sales proving strong throughout the period. However, second-half operating profit contracted slightly as the impact of safeguards in Indonesia impacted the gross profit margin.

In the North America and Europe regions LifeWear concept helped generate a strong performance.

GU records strong full year growth

GU revenue of 295.2 billion yen increased 20 percent, while operating profit of 26.1 billion yen was up 56.8 percent.

Global Brands reported a large increase in full-year revenue but operating loss widened on recording of impairment and other losses. Revenue of 141.6 billion yen was up 15 percent, while business profit was 0.5 billion yen. The segment’s operating loss expanded to 3 billion yen compared to a 0.7 billion yen loss in FY2022.

The company further said that Theory generated large increases in revenue and profit, PLST reported higher revenue and a smaller loss and Comptoir des Cotonniers reported a decline in revenue and a wider loss.

For fiscal year 2024, consolidated revenue is expected to reach 3.0500 trillion yen, up 10.2 percent, while consolidated operating profit is expected to reach 450 billion yen, up 18.1 percent, and profit attributable to owners to reach 310 billion yen, up 4.6 percent.

The company forecasts an annual dividend per share in FY2024 of 330 yen, split equally between interim and year-end dividends of 165 yen each. That represents an increase in the full-year dividend of 40 yen per share.