Major casual clothing chain operator Fast Retailing Co. has achieved its highest-ever annual group revenue, surpassing ¥3 trillion for the first time. The company reported a consolidated revenue of ¥3.104 trillion for the 12 months through August, marking a 12.2% increase from the previous year based on international financial reporting standards. Net profit also reached an all-time high of ¥371.9 billion, up 25.6% from the previous year.
The success can be attributed to strong sales of its Uniqlo brand, which accounted for 55% of total sales and experienced significant growth in overseas markets. Uniqlo’s simple and high-quality clothing has gained popularity worldwide, with products developed based on customer requests proving particularly successful in the United States.
In Japan, robust sales of seasonal products were driven by higher temperatures during spring and summer, while earnings were further boosted by sales to foreign visitors.
Daisuke Tsukagoshi, president of Uniqlo Co., expressed satisfaction with the brand’s profitability across different countries and regions and emphasized that globalization is steadily progressing.
However, Fast Retailing has faced challenges in China where over half of its overseas Uniqlo stores are located due to an economic downturn affecting local consumption. In response to this issue, the company is actively working on reforming its business structure by reviewing store opening strategies.
Looking ahead to the next fiscal year ending August 2025, Fast Retailing expects a 9.5% increase in revenue to reach ¥3.4 trillion and projects net profit to rise by 3.5% to ¥385 billion driven by upbeat sales in Southeast Asia, Europe, and North America.
During a press conference, Tadashi Yanai – Chairman and President of Fast Retailing – expressed his belief in the potential of global markets and stated his intention to prepare for achieving annual revenues of ¥10 trillion.
Regarding his successor at Fast Retailing Co., Yanai emphasized that he would not appoint his two sons who currently serve as board directors despite their involvement in corporate governance activities; instead he stressed the importance of creating opportunities for ordinary employees within the company hierarchy.