Japanese firm Fast Retailing's revenue jumps 9% in H1 FY24

The company attributes its robust performance primarily to the strong sales of its Uniqlo operations across North America, Europe, and Southeast Asia, alongside notable contributions from its GU fashion brand. This synergy has propelled the group's overall expansion, with profit attributable to owners of the parent climbing by 27.7 per cent to 195.9 billion yen, the company said in a press release.

Despite a slight revenue dip of 2 per cent in Uniqlo Japan, resulting in 485.1 billion yen, the segment witnessed a 14.7 per cent increase in operating profit, amounting to 77.2 billion yen. The decline in same-store sales by 3.4 per cent was attributed to a less than optimal product lineup for the warm winter weather and inadequate communication of product information. However, a significant improvement in gross profit margin by 3.6 percentage points was highlighted as a key factor behind the profit rise.

On the international front, Uniqlo's operations showcased remarkable growth, with revenue surging by 17 per cent to 883.9 billion yen and operating profit by 23 per cent to 150.9 billion yen. Notably, the US and Europe entered a 'virtuous growth cycle', driven by an expanding customer base and increasing affinity towards LifeWear products. Southeast Asia, India, and Australia also reported substantial revenue and profit increases, while South Korea saw gains in both metrics. However, the Greater China region experienced flat operating profit, despite a revenue increase, attributed to warm winter weather and a slowdown in consumer appetite.

GU brand reported a 9.6 per cent increase in revenue to 159.5 billion yen and a 17.5 per cent increase in operating profit to 15.3 billion yen. Conversely, the global brands segment faced challenges with a 1.2 per cent decrease in revenue to 69.4 billion yen and an operating loss of 1.7 billion yen.

Fibre2Fashion News Desk (DP)