Propelled by the performance of its flagship brand Uniqlo in North America, Europe and South-East Asia, Japanese ready-to-wear group, Fast Retailing reported exceptional half-year results. The company has slightly adjusted its full-year profit forecast following these promising figures.

The company’s net profit during the first half, spanning from September 2023 to February 2024, rose by 27.7 cent to 195.9 billion yen (approximately €1.2 billion). The company’s operating profit also increased by 16.7 per cent Y-o-Y to 257 billion yen.

Sales of the company increased by 9 per cent to 1,598.9 billion yen. This growth  was driven primarly by Uniqlo's robust international performance, alongside the contribution of the group's second major brand, GU. 

However, the company registered a 2 per cent decline in the Uniqlo sales in domestic market in Japan Fast Retailing attributed this underperformance to insufficient product offerings tailored for a warmer-than-usual winter, as well as communication issues regarding its products.

Similarly, in China, Uniqlo faced challenges due to a milder winter and a slowdown in consumer spending.

The group's other brands, including Theory, PLST, Comptoir des Cotonniers, and Princesse tam.tam, reported a slight decrease in total sales by 1.2 per cent Y-o-Y and incurred an operating loss of 1.7 billion yen (€103 million).

Fast Retailing mentioned that the reduction in the number of Comptoir des Cotonniers shops by 10 per cent compared to the previous year contributed to the decline in sales.

Despite these challenges, the company remains optimistic about achieving record results for the fiscal year 2023/24. It has raised its annual profit forecast by 8 per cent Y-o-Y to 320 billion yen. However, it slightly adjusted its sales forecast to 3,030 billion yen, maintaining robust sales growth at 9.5 per cent Y-o-Y.