Fast Retailing Co. is filling up closets in American and European homes with its Uniqlo brand of apparel, a feat that’s helped the Japanese retailer pull off record annual revenue despite a slowdown in China.
Growing demand from North America, Europe and rest of the Asia-Pacific region pushed Fast Retailing’s revenue in the fiscal year ended August to ¥3.1 trillion ($20.8 billion). That’s given the company the confidence to target an operating profit of ¥530 billion in the current fiscal year, surpassing analysts’ estimates.
Much of that confidence stems from strong growth momentum seen across all of Uniqlo’s international markets but China — thus far the company’s biggest overseas market where sales dipped and profit contracted sharply over the past two quarters.
That trend underlines Fast Retailing’s expansion into the West to realise founder Tadashi Yanai’s dream of turning the Japanese clothing brand into a global fashion leader. The company expects another year of strong revenue and profit growth from North America and Europe, Chief Financial Officer Takeshi Okazaki said at a briefing in Tokyo on Thursday.
“Uniqlo’s brand awareness is increasing globally,” he said, citing greater acceptance among locals, as also tourists, in each of the markets it’s present in.
Revenue and profit generated from Uniqlo stores in North America and Europe rose substantially in the 2024 fiscal year as the brand’s functional basics gained more consumer recognition there. For China, the company reiterated a plan announced earlier this year to close under-performing stores and revamp bigger and better-located ones to drive sales.
Operating income last quarter was ¥99.1 billion, ahead of the ¥76.05 billion average of analyst estimates compiled by Bloomberg. Net income came in at ¥59.16 billion during this period, beating an estimate for ¥40 billion.
Fast Retailing shares rose 1.3 percent on Thursday after it reported sales that beat estimates. Earlier in the day, the stock reached a record high of ¥51,380.
Other than Uniqlo, Fast Retailing’s casual wear GU brand also reported a robust profit increase during this period thanks in part to a successful expansion into the US.
Fast Retailing’s North American business only started to emerge from losses two years ago, after Yanai tapped company veteran Daisuke Tsukagoshi — who previously led Uniqlo’s expansion in China and later promoted to chief operating officer of Uniqlo — to engineer a turnaround with a hefty marketing push.
By Nicholas Takahashi
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