Fast Retailing Reports Third Consecutive Record Year: Uniqlo Benefits from International Growth

Japan's fashion giant Fast Retailing, the parent company of Uniqlo, has achieved record results for the third consecutive year, mainly due to increased profit margins in its international markets. In the past fiscal year, which ended in August, operating profit rose by an impressive 31% to 500.9 billion yen, approximately 3.35 billion USD. This exceeded both the average analyst forecasts of 478.3 billion yen and the company's own prediction of 475 billion yen. For the upcoming fiscal year, Fast Retailing forecasts a further increase in operating profit to 530 billion yen. Uniqlo's success, known for affordable fashion items such as fleece jackets and inexpensive underwear, is further fueled by a weak domestic currency. The international tourism boom in Japan has boosted duty-free shopping, while the push into Western markets generates additional revenue, which is stronger when converted into yen. However, the situation in China, the company's largest overseas market, is less favorable. Despite a strong presence with over 900 stores in the country, Fast Retailing is struggling with a sluggish economy and the resulting diminished consumer confidence. The pandemic had already dampened results, yet the economic situation remains a challenge. Fast Retailing founder Tadashi Yanai pursues the vision of becoming the world's largest fashion company, surpassing competitors like Inditex and H&M. He emphasizes that post-pandemic consumers place more value on quality and price, which works in Uniqlo's favor. At the upcoming press conference, Yanai will be joined by Uniqlo President Daisuke Tsukagoshi. The latter could become the designated successor to Yanai, Japan's richest man.