Uniqlo parent Fast Retailing increases half-year sales and profit

Thanks to the strong international business of its Uniqlo clothing chain, the Japanese retail group Fast Retailing Co. Ltd. was able to close the first half of the 2023/24 financial year with solid growth in sales and earnings.

In light of the latest figures, the company raised its profit forecast for the full year on Thursday. However, the sales target was revised slightly downwards.

Uniqlo achieves sales growth of 17 percent in international business

In the six months prior to 29 February, Fast Retailing's consolidated sales reached almost 1.60 trillion Japanese yen (10.4 billion dollars). This exceeded the previous year's level by 9 percent.

The retailer Uniqlo suffered a 2 percent drop in sales in its Japanese home market to 485.1 billion Japanese yen. In its international business, however, the chain's sales increased by 17 percent to 883.9 billion Japanese yen. According to the company, this significant increase was due not least to "considerable growth" in Europe and North America.

The group brand GU increased its half-year sales by 9.6 percent to 159.5 billion Japanese yen. Sales in the Global Brands division, which includes the other labels belonging to the group such as Comptoir des Cotonniers and Theory, totalled 69.4 billion Japanese yen, slightly below the previous year's level (-1.2 percent).

Half-year profit grows by almost 28 percent

Thanks to double-digit growth at Uniqlo and GU, the operating result for the group as a whole rose by 16.7 percent to 257.1 billion Japanese yen. Net profit attributable to shareholders reached 195.9 billion Japanese yen (1.3 billion dollars) in the first half of the year. This was 27.7 percent higher than in the same period last year.

On the basis of these figures, management readjusted its forecasts for the financial year, which runs until the end of August. The sales target was lowered from 3.05 to 3.03 trillion Japanese yen. However, this would still mean growth of 9.5 percent compared to the previous year. However, the retailer is more optimistic when it comes to earnings: the forecast for profit attributable to shareholders has been raised from 310 to 320 billion Japanese yen.