FAST RETAILING CO., LTD. April 11, 2024
Fast Retailing First−half
Results for September 2023 to February 2024, and Estimates for FY2024
Takeshi Okazaki
Fast Retailing Co., Ltd.
Group Senior Executive Officer & CFO
１
Contents
Ⅰ . FY2024 First−half Business Results Ⅱ． Estimates for FY2024
Ⅲ． Reference materials
- 3 ～ P 19 P 20 ～ P 26 P 27 ～ P 30
Disclosure of Corporate Performance
Following the Group's adoption of International Financial Reporting Standards (IFRS) from the year ending August 31, 2014, all data in this document are calculated using IFRS standards.
Business profit = Revenue - (Cost of sales + SG&A expenses)
Group Operations: | |
UNIQLO Japan: | UNIQLO Japan operations |
UNIQLO International: | All UNIQLO operations outside of Japan |
GU: | All GU operations inside and outside Japan |
Global Brands: | Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam |
Consolidated results also include Fast Retailing Co., Ltd. performance and consolidated adjustments.
A Note on Business Forecasts
When compiling business estimates, plans and target figures in this document, the figures that are not historical facts are forward looking statements based on
management's judgment in light of currently available information. These business forecasts, plans and target figures may vary materially from the actual business
results depending on the economic environment, our response to market demand and price competition, and changes in exchange rates.
2
Group: FY2024 1H Results
Revenue up, significant profit gain. Operating profit in line with plan
unit : billion of yen | Yr to Aug. 2023 | Yr to Aug. 2024 | |
(6 mths to Feb.2023) | (6 mths to Feb.2024) | y/y | |
Actual | Actual | ||
Revenue | 1,467.3 | 1,598.9 | +9.0% |
Gross profit | 741.5 | 845.2 | +14.0% |
(to revenue) | 50.5% | 52.9% | +2.4p |
SG&A | 524.2 | 594.0 | +13.3% |
(to revenue) | 35.7% | 37.2% | +1.5p |
Business profit | 217.3 | 251.1 | +15.6% |
(to revenue) | 14.8% | 15.7% | +0.9p |
Other income, expenses | 2.9 | 5.9 | +100.3% |
Operating profit | 220.2 | 257.0 | +16.7% |
(to revenue) | 15.0% | 16.1% | +1.1p |
Finance income, costs | 10.2 | 42.3 | +313.4% |
Profit before income taxes | 230.4 | 299.3 | +29.9% |
(to revenue) | 15.7% | 18.7% | +3.0p |
Profit attributable to | 153.3 | 195.9 | +27.7% |
owners of the parent | |||
(to revenue) | 10.5% | 12.3% | +1.8p |
3
FY2024 1H Results: Main Points
・UNIQLO N. America, Europe, and SE Asia, along with GU, generated large profit gains as key growth pillars. Helped drive Group expansion and achieve a record performance.
・N. America and Europe enters a virtuous growth cycle on the back of rising affinity toward LifeWear, expanding customer bases, and accelerated opening of new stores.
・Operating profit from the Greater China region, another growth pillar, was unable to climb above the previous year's level due to unseasonable weather and a decline in consumer appetite for apparel.
・Made thorough STOP&GO decisions on ordering to match sales trends. Gross margins improved at UNIQLO Japan and all other segments. Consolidated operating margin also rose.
4
Group: FY2024 1H Operating profit
Revenue
¥1.4673trln → ¥1.5989trln
為替影響 |
¥1.5989trln
Group | +¥131.6bln |
UQ Japan | −¥10.0bln |
UQ Intl. | +¥128.7bln |
GU | +¥14.0bln |
Global Brands | −¥0.8bln |
Group | +3.2％ |
USD | +5.8% |
RMB | +2.9% |
EUR | +11.6% |
KRW | +7.0% |
+9.0% | Gross profit margin | |
50.5％ → 52.9％ | ||
Group | +2.4ｐ | |
UQ Japan | +3.6ｐ | |
UQ Intl. | +1.1ｐ | |
GU | +2.2ｐ |
SG&A ratio
35.7％ → 37.2％
Group | +1.5ｐ |
UQ Japan | +1.3ｐ |
UQ Intl. | +0.7ｐ |
GU | +0.7ｐ |
We changed the practice followed through FY2023 of reporting year-end bonuses as a lump sum in August to monthly accounting from FY2024. If we strip out this impact, the SG&A ratio increased by 0.9p to 36.6%
Operating profit margin
¥845.2bln +14.0%
¥594.0bln +13.3%
Foreign exchange | ||||
gain: ¥4.3bln | ||||
¥251.1bln | ¥5.9bln | |||
＋15.6% | ||||
SG&A | Other | |||
income/expenses | ||||
15.0％ → 16.1％
Group | +1.1ｐ |
UQ Japan | +2.3ｐ |
UQ Intl. | +0.9ｐ |
GU | +0.6ｐ |
¥257.0bln ＋16.7%
FY2024 | FY2024 | FY2024 | FY2024 | |
1H | 1H | 1H | 1H | 5 |
Revenue | Gross profit | Business profit | Operating profit |
Group: FY2024 1H | Profit Attributable to | |
Owners of the Parent | ||
Interest income and expenses: | ¥25.7bln | |
Foreign exchange gains (losses) : | ¥ 16.5bln |
(September 1, 2023: 1USD=146.2JPY, February 29, 2024: 1USD=150.7JPY)
¥299.3bln ¥89.9bln
¥42.3bln ＋29.9%
¥257.0bln ＋16.7%
Net finance | ¥209.4bln | ||||
income | ¥195.9bln | ||||
＋27.2% | ¥13.5bln | ||||
Income taxes | ＋27.7% | ||||
Non-controlling | |||||
assets |
FY2024 | FY2024 | |||
1H | 1H | |||
Profit before | ||||
Operating | ||||
Income tax | ||||
profit | ||||
FY2024
1H
Profit for the
period
FY2024
1H | |
Profit attributable to | |
owners of the parent | 6 |
1H Breakdown by Group Operation
unit : billion of yen
UNIQLO
Japan
UNIQLO
International
GU
Global
Brands
Yr to Aug. 2023 | Yr to Aug. 2024 | ||
(6 mths to Feb.2023) | (6 mths to Feb.2024 | y/y | |
Actual | |||
Revenue | 495.1 | 485.1 | -2.0% |
Business profit | 66.9 | 76.4 | +14.2% |
(to revenue) | 13.5% | 15.8% | +2.3p |
Other income, expenses | 0.4 | 0.8 | +75.8% |
Operating profit | 67.3 | 77.2 | +14.7% |
(to revenue) | 13.6% | 15.9% | +2.3p |
Revenue | 755.2 | 883.9 | +17.0% |
Business profit | 124.9 | 150.0 | +20.1% |
(to revenue) | 16.5% | 17.0% | +0.5p |
Other income, expenses | -2.2 | 0.8 | - |
Operating profit | 122.6 | 150.9 | +23.0% |
(to revenue) | 16.2% | 17.1% | +0.9p |
Revenue | 145.5 | 159.5 | +9.6% |
Business profit | 11.7 | 15.1 | +28.7% |
(to revenue) | 8.1% | 9.5% | +1.4p |
Other income, expenses | 1.2 | 0.1 | -85.0% |
Operating profit | 13.0 | 15.3 | +17.5% |
(to revenue) | 9.0% | 9.6% | +0.6p |
Revenue | 70.2 | 69.4 | -1.2% |
Business profit | -0.4 | -1.7 | - |
(to revenue) | - | - | - |
Other income, expenses | 0.5 | -0.0 | - |
Operating profit | 0.1 | -1.7 | - |
(to revenue) | 0.2% | - | - |
Note: In addition to the above, the consolidated results also include Fast Retailing's real estate leasing business as well as adjustment amounts that | 7 |
are not attributable to any of the four reporting segments. | |
UNIQLO Japan: 1H Overview
Revenue down but sharp profit gain. Operating profit exceeds plan
・While revenue fell short of our recent estimates, operating profit exceeded expectations thanks to more successful control over ordering, which boosted the gross profit margin, and a bigger-than-planned reduction in SG&A expenses.
unit : billion of yen
Revenue
Gross profit
(to revenue)
SG&A
(to revenue)
Business profit
(to revenue)
Other income, expenses
Operating profit
(to revenue)
Yr to Aug. 2023 | Yr to Aug. 2024 | |
(6 mths to | (6 mths to Feb.2024 | y/y |
Feb.2023) | ||
495.1 | 485.1 | -2.0% |
226.2 | 239.0 | +5.7% |
45.7% | 49.3% | +3.6p |
159.3 | 162.6 | +2.1% |
32.2% | 33.5% | +1.3p |
66.9 | 76.4 | +14.2% |
13.5% | 15.8% | +2.3p |
0.4 | 0.8 | +75.8% |
67.3 | 77.2 | +14.7% |
13.6% | 15.9% | +2.3p |
8
UNIQLO Japan: 1H Revenue
1H same-store sales −3.4% y/y (1Q: +0.2%, 2Q: −6.8%)
・1H sales declined overall as unusually warm weather at the beginning of the season in September and October and the bumper month of December stifled demand for Winter goods and we failed to compile enough suitable products for warm winter weather or convey enough product-related information.
・Strong revenue gains in November and February when product launches matched the prevailing weather conditions. Strong sales of HEATTECH innerwear, fleece T-shirts, and wide pants drove overall performance.
・Having clarified the issues, we started (1) increasing the proportion of products that are not so easily impacted by the weather, (2) developing newsworthy products, and (3) strengthening communication by clearly ascertaining which products should be strategically marketed.
・e-commerce sales: ¥74.3bln (−6.3% y/y, 15.3% of total sales)
・March same-store sales: −1.5% y/y. Sales of Spring items dampened by cold weather throughout the month.
Same-store sales | Yr to Aug.2024 | |||||||||
y/y | Sep. | Oct. | Nov. | １Q | Dec. | Jan. | Feb. | ２Q | 1H | Mar. |
Net sales | -4.6% | -8.5% | ＋10.0% | ＋0.2% | -15.4% | ＋0.4% | ＋7.2% | -6.8% | -3.4% | -1.5% |
Customer visits | -6.8% | -10.3% | ＋6.0% | -2.8% | -14.6% | -1.3% | ＋2.6% | -7.1% | -5.0% | -7.7% |
Customer spend | ＋2.3% | ＋2.0% | ＋3.8% | ＋3.2% | -0.9% | ＋1.8% | ＋4.4% | ＋0.3% | ＋1.8% | ＋6.7% |
９
UNIQLO Japan: Gross Profit Margin, SG&A Ratio
Gross profit margin: 49.3% (improved +3.6p y/y)
・Gross profit margin improved primarily on the back of improved cost of sales.
・Cost of sales: Rose in FY2023 1H due to sharp depreciation in yen spot rates used for additional production orders. Improved considerably in FY2024 1H as greater ordering accuracy reduced additional production orders and, consequently, the impact of yen spot rates.
・Discounting rate: Rose slightly y/y on efforts to attract customers and rundown inventory. End-February inventory was sitting at an appropriate level.
SG&A ratio: 33.5% (Rose +1.3p y/y)
・SG&A ratio rose on higher personnel costs and depreciation ratios in the face of lower sales.
Personnel: Rose y/y in monetary terms due to the change in year-end bonus reporting from lump-sum recording in August through FY2023 to monthly recording from FY2024. The ratio declined slightly when this impact was removed. Productivity and sales per employee were improved by reducing inventory levels, improving store operations, and utilizing digital technology.
Depreciation: Rose y/y on the first recording of depreciation expenses following the launch of automated warehouses that were newly constructed last year.
・If we strip out the factor relating to changes in the timing of recording year-end bonuses, the SG&A ratio
improved by 1.0p to 33.2%. | 10 |
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Disclaimer
Fast Retailing Co. Ltd. published this content on 10 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 April 2024 06:26:01 UTC.
