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Fast Retailing posted first-quarter profits, even though the business saw slow sales from Uniqlo’s Mainland China operations.
Fast also said on Thursday that group sales for the quarter and the month of December were slightly below the company’s plan, but noted that it can make up the shortfall in the second quarter. With the exception of Mainland China, Uniqlo sales were strong in Japan and the brand’s businesses saw “favorable” expansion in Southeast Asia, India & Australia, North America and Europe. Fast also cited strong performance from establishing a business that is “less vulnerable to changes in temperature, primarily in Uniqlo Japan,” and it said the Uniqlo brand awareness has been on the rise because of “hugely successful store openings” in new areas across North America and Europe. Fast cited success in the Southern U.S. region as confirmation of the brand’s stateside growth potential. Fast in October 2023 detailed plans on how it would step up new store openings.
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For the three months ended Nov. 30, operating profit rose 7.4 percent to 157.5 billion yen ($996.2 million) from 146.6 billion yen ($927.3 million) in the same year-ago period. Revenue for the quarter rose 10.4 percent to 895.1 billion yen ($5.66 billion) from 810.8 billion yen ($5.13 billion).
For its main Uniqlo brand, revenue for Uniqlo Japan rose 9 percent to 266.6 billion yen ($1.69 billion) from 244.4 billion yen ($1.55 billion) a year ago. Fast said product mixes suited to hotter weather helped with September sales, ending the quarter in November with cooler weather product—such as its warm apparel line Heattech and cashmere items—and its “vigorous” 40th Uniqlo Thank You Festival sale. The fast-fashion firm started the second quarter with a 15.3 percent rise in December same-store sales on strong sales of thermal apparel, helped by a “buoyant year-end sale.”
Uniqlo International saw revenues rise 13.7 percent to 501.7 billion yen ($3.17 billion) from 441.3 billion yen ($2.79 billion). The business slipped on sales projections due to “lower-than-expected performance in Greater China, which reported a decline in revenue and large contraction in profit,” Fast said. It attributed the decrease to insufficient warm-winter product mixes because of “unseasonal warm weather” from late October through November. Fast said it would improve product mixes and consider the timing of product introductions tailored to regional needs such as local climate conditions, as well as shift to local-store management.