Retail in Asia

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Fast Retailing lifts guidance on recovering China

Fast Retailing, the owner of Uniqlo, reported first-half revenues of JPY 1.4672 trillion (USD 11 billion), up 20.4 percent, coinciding with an operating profit of JPY 220.2 billion, up 16.4 percent on 2022.

SEE ALSO: Fast Retailing profits dip on China, Japan contraction

The Tokyo-based company said Uniqlo Japan revenues grew 11 percent to JPY 495.1 billion, while Uniqlo international sales surged 27.3 percent to JPY 755.2 billion.

The company record ‘strong performances’ from Uniqlo operations in its Southeast Asia, India and Australia, North America, and Europe regions. The Greater China region reported a decline in first-half revenue, due to the “heavy impact of Covid-19 in the first quarter.”

However, the company has noticed the region’s performance recovering, generating strong sales from January and a rise in second-quarter profit.

Fast Retailing’s GU brand also generated “significant increases in both revenue and profit,” during the first-half 2023, with revenue up 18.5 percent to JPY 145.5 billion, operating profit up 39.2 percent to JPY 13 billion.

Elsewhere, the company’s global brand revenue totalled JPY 70.2 billion, up 19.1 percent, while operating profit plummeted 85.3 percent, JPY 0.1 billion yen.

By brand, Theory operations reported a large increase in revenue but a decline in profits, while Comptoir des Cotonniers reported a decline in revenue and a wider operating loss.

Looking ahead, Fast Retailing said it has lifted its guidance by JPY 30 billion for full-year 2023 consolidated revenue, and by JPY 10 billion, for consolidated profit measures.

It now expects to achieve full-year consolidated revenue of JPY 2.68 trillion, up 16.5 percent, and consolidated operating profit of JPY 360 billion, up 21 percent.