Fast Retailing’s Revenue Tops ¥3 Tril. for 1st Time; Uniqlo Boosts Parent Company’s Performance Despite China Struggles

The Yomiuri Shimbun

16:20 JST, October 11, 2024

Major casual clothing chain operator Fast Retailing Co. has posted its highest-ever annual group revenue, exceeding ¥3 trillion for the first time on the back of upbeat sales of its Uniqlo brand.

For the 12 months through August, the company reported a consolidated revenue of ¥3.104 trillion, an increase of 12.2% from the previous year based on international financial reporting standards. Its net profit also hit an all-time high of ¥371.9 billion, up 25.6% from a year earlier.

The Uniqlo business boosted the company’s performance significantly. Overseas revenue accounted for 55% of the brand’s total sales, as its simple, high-quality clothing has increased the brand’s popularity. In the United States, products developed based on customer requests also proved popular.

In Japan, sales of seasonal products were robust due to higher temperatures in spring and summer. Sales by foreign visitors to Japan also boosted earnings.

At a press conference on Thursday, Daisuke Tsukagoshi, president of Uniqlo Co., said, “[The brand] has become profitable in each country and region, and globalization is steadily progressing.”

On the other hand, the company has continued to struggle in the Chinese market, where more than 50% of overseas Uniqlo stores do business, as local consumption has slowed due to an economic downturn. In response, the company has accelerated efforts to reform its business structure such as by reviewing its store opening strategy.

For the 12 months through August 2025, the company expects its revenue to increase 9.5% year on year to ¥3.4 trilion and projects net profit to rise 3.5% to ¥385 billion, with sales in Southeast Asia, Europe and North America expected to be upbeat.

At the press conference, Fast Retailing Chairman and President Tadashi Yanai said, “The global market has potential.” He expressed his intention to make preparations to achieve annual revenues of ¥10 trillion.

Referring to the issue of his successor, Yanai stressed that he would not have his two sons, who currently serve as Fast Retailing’s board directors, manage the company even though they are in charge of corporate governance. “It is necessary to make it possible for an ordinary employee to become president eventually,” he said.