Japan's Fast Retailing reports 14.2% growth in revenue of Q1 FY23

In Q1 FY23, Uniqlo’s revenue increased, while profit declined. Revenue was 240.9 billion yen (up 6.4 per cent YoY), while operating profit was 39.4 billion yen (down 5.6 per cent YoY). Uniqlo’s gross profit margin declined by 1.1 points YoY after warm temperatures stifled sales in November and the rapid depreciation in the yen boosted cost of sales. Profit also declined as a result, Fast Retailing said in a press release.

Uniqlo International’s revenue was 357.8 billion yen, up 19.4 per cent YoY, in Q1 FY23. Operating profit was 57.2 billion yen, down 4.4 per cent. Segment profit declined after the Mainland China market reported a large decline in profits due to COVID-19 restrictions on movement and Russia reported a loss due to the suspension of operations in that market. South Asia, Southeast Asia, and Oceania, North America, and Europe (excluding Russia) achieved record high performances, reporting large increases in both revenue and profit that outstripped initial plan.

The GU business segment reported large increases in both revenue and profit in the first quarter of fiscal 2023, with revenue rising to 79.3 billion yen (up 13.6 per cent YoY) and operating profit totalling 10.6 billion yen (up 19.3 per cent YoY). The return of more normal distribution operations, an increased ability to respond flexibly to requirements for additional production of strong-selling items, and falling temperatures in October all helped boost GU performance. Sales of heavyweight sweatshirts, wide pants, and heat padded outerwear proved especially strong.

The Global Brands segment reported a large rise in revenue but a decline in profit in the first quarter of fiscal 2023, with revenue rising to 37.6 billion (up 22.4 per cent YoY) and an operating profit contracting to 0.7 billion yen (down 72.1 per cent YoY).

For FY23, the Fast Retailing expects to achieve consolidated revenue of 2.65 trillion yen (up 15.2 per cent YoY) and operating profit of 350 billion yen (up 17.7 per cent YoY). The company expects Uniqlo International to achieve higher revenue and profit in the first half of fiscal 2023.

Fibre2Fashion News Desk (DP)