Uniqlo owner reports record annual earnings

Fast Retailing said 'buoyant demand from overseas visitors also contributed to the increase in Uniqlo Japan revenue'. Photo: Kazuhiro NOGI / AFP
Source: AFP

Uniqlo's parent company Fast Retailing on Thursday announced "a record high performance in fiscal 2024" with domestic profits in Japan boosted by hot summer weather and a tourism boom.

The company also reported "significant increases in both revenue and profit" for international stores of casualwear giant Uniqlo.

Fast Retailing -- the world's third biggest clothing manufacturer and retailer after Zara owner Inditex and Sweden's H&M -- reported a 25 percent on-year jump in net profit to 371.9 billion yen ($2.5 billion).

The firm's earnings have hit new records for several years running since the Covid-19 pandemic eased as it pursues an aggressive international expansion strategy.

Warm weather over the winter squeezed sales slightly for Uniqlo stores in Japan, famous for their down jackets.

"However, same-store sales subsequently increased by 11.7 percent year-on-year in the second half from 1 March through 31 August 2024 thanks to consistently high temperatures," the company said in a statement.

Japan's summer this year was its joint warmest on record, and climate scientists predict that 2024 will be the hottest ever for the Earth because of a warming planet.

Domestic Uniqlo stores maintained a "strategic inventory of core summer ranges through the end of the summer season" and enhanced its marketing initiatives, Fast Retailing said.

Japan is also welcoming a record influx of tourists and is expected to have a total 35 million overseas visitors in 2024.

"Buoyant demand from overseas visitors also contributed to the increase in Uniqlo Japan revenue as Uniqlo brand recognition continues to rise worldwide," Fast Retailing said.

For Uniqlo overseas, operating profit margins "improved significantly in both North America and Europe".

Sales in mainland China and Hong Kong were strong in the first half of the business year but more sluggish in the second half, it added.

The company put this down to "a slowdown in consumer appetite, unseasonal weather, and product lineups that did not fully satisfy the needs of local customers".

Fast Retailing also operates the budget GU clothing brand, which reported a jump in revenue and profit for the financial year.

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Source: AFP