The Japanese retail group Fast Retailing Co. Ltd. continued its growth course in the first quarter of the 2024/25 financial year. Although the Uniqlo retail chain’s revenue in China fell short of expectations, the group stuck to its annual forecasts.
According to a statement published on Thursday, group sales in the three months ended November 24, 2024 amounted to 895.1 billion Japanese yen (5.5 billion euros). This exceeded the level of the previous year’s quarter by 10.4 percent. Uniqlo’s sales in the Japanese home market rose by 9.0 percent to 266.6 billion Japanese yen.
Uniqlo has suffered a decline in sales in China
The Uniqlo International segment grew by 13.7 percent to 501.7 billion Japanese yen, but missed management’s goals. The reason for this was a decline in sales in China. The company explained that the range there was not sufficiently tailored to the unusually mild temperatures in recent months. However, Uniqlo once again achieved strong growth in the other international market regions.
The quarterly sales of the GU group brand grew by 3.6 percent to 90.6 billion Japanese yen and thus also developed worse than previously expected. The other labels in the group, which include Theory, PLST and Comptoir des Cotonniers, had a combined turnover of 35.7 billion Japanese yen. This corresponded to a decrease of 2.4 percent compared to the same period last year.
The group is sticking to its annual forecasts
The group was able to keep its gross margin almost constant despite the problems in China, but had to record higher operating costs and negative currency effects. The operating result rose by only 7.4 percent to 157.5 billion Japanese yen. Net profit attributable to shareholders increased by 22.4 percent to 131.9 billion Japanese yen (811 million euros).
Despite the weak quarterly figures in China and at GU, the group left its forecasts for the entire financial year published in October unchanged because business in Japan has recently developed better than planned. In Southeast Asia, India, Australia, Europe and the US, results were “strong as expected,” the retailer said.
The company therefore continues to expect a sales increase of 9.5 percent to 3.40 trillion Japanese yen for 2024/25. Net profit attributable to shareholders is expected to increase by 3.5 percent to 385.0 billion Japanese yen.