Fast Retailing, the owner of the renowned clothing company Uniqlo, has announced its fiscal-year results, showcasing impressive growth and profitability. Here are the key details you need to know:
Net Profit
In the fiscal year ended Aug. 31, Fast Retailing’s net profit reached a new record high of 296.23 billion yen ($1.99 billion), marking an 8.4% increase. The fourth-quarter net profit stood at Y57.71 billion, contributing to a total net profit of Y238.52 billion for the preceding nine months, as reported by The Wall Street Journal. This exceeded the estimated net profit of Y25.07 billion as per a FactSet analysts’ poll.
Revenue Surge
Fast Retailing witnessed a remarkable 20% revenue increase for the fiscal year, reaching Y2.767 trillion.
Key Highlights
Diversification
Fast Retailing’s overseas Uniqlo business has become a significant contributor to the company’s overall revenue, surpassing the 50% mark for the first time. It also accounted for about 60% of the total operating profit. Notably, Uniqlo’s operating profit in North America experienced a staggering 92% surge to Y21.1 billion, while Europe (excluding Russia) witnessed an impressive climb of 82.5% to Y27.3 billion. These robust performances have effectively diversified the source of Fast Retailing’s earnings.
Expansion Plans
Looking ahead, Fast Retailing has ambitious plans for expanding its Uniqlo stores globally. The company aims to increase the total number of stores to 3,660 by the end of August 2024, compared to 3,578 at the end of August 2023.
Positive Outlook
Fast Retailing projects positive growth and profitability trends for this fiscal year, forecasting a 4.6% increase in net profit to Y310.00 billion. The company attributes this optimism to the growing profitability across various business lines. Additionally, it anticipates a 10% revenue surge to Y3.050 trillion.
Dividend Payout
To reward its shareholders, Fast Retailing plans to distribute dividends of Y330 per share for this fiscal year, representing an increase from Y290 per share in the previous fiscal year.
