Uniqlo and Theory's owner Fast Retailing ups forecast

Fast Retailing, the owner of Uniqlo and Theory, has raised its full-year profit forecast to reflect record-breaking results of £1.77 billion (365 billion yen), up from £1.55 billion (320 billion yen), for the year ending August 2024.

For the third quarter ending 31 May 2024, the company said sales were up by 30% to £1.52 billion (312 billion yen).

The financial publication stated: "Our performance was steered by substantial increases in revenues and profit of Uniqlo operations in North America, Europe, South East Asia and Japan." However, profits disappointed for the China region.

Sales in the Mainland China market struggled due to a "slowdown of consumer appetite, unseasonal weather, and product lineups that didn’t fully satisfy the needs of local customers". By contrast, the Taiwan market reported large revenue and profit gains and South Korea reported higher revenue and profit on the back of strong sales of summer ranges.

Uniqlo Europe reported large gains in revenue and profit. Newly opened stores in London, Edinburgh, Rome and Italy boosted double-digit growth.

As for Fast Retailing's global brands, they reported a 2.5% decline in revenue to £500 million (103.7 billion yen). Theory's operating profit, in particular, declined significantly as "the operation failed to sufficiently control personnel costs and other business costs".

Looking ahead, to meet its new targets, Fast Retailing is focusing on several areas as part of its endeavour "to become a global No.1 brand that is essential to daily living".

These measures include:

• Further progressing the development of a digital consumer retailing industry.
• Diversifying global earnings pillars.
• Pursuing a business model in which the development of business contributes to sustainability.
• Expanding the GU business segment, as well as Theory and other global brands.
• Strengthening human capital.