Last Updated: 2025.04.10
Results Summary for FY2025 First Half (Six Months to February 2025)
FAST RETAILING CO., LTD.
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【FY2025 1H Highlights】
■Consolidated results: Fast Retailing reports record first-half results on sharp rises in revenue and profit
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In the first half of FY2025, consolidated revenue rose to 1.7901 trillion yen (+12.0% year-on-year) and operating profit increased to 304.2 billion yen (+18.3%).
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Strong performances and large increases in revenue and profit from UNIQLO operations in Japan; Southeast Asia, India & Australia; North America; and Europe.
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First-half profit attributable to owners of the Parent rose 19.2% to 233.5 billion yen. We expect the annual dividend per share to increase by 80 yen year-on-year to 480 yen, including an interim dividend of 240 yen.
■UNIQLO Japan: Achieved a record performance on large revenue and profit gains after adjusting business to suit changing weather
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Revenue: 541.5 billion yen (+11.6%), operating profit: 97.6 billion yen (+26.4%).
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Same-store sales proved strong, expanding by 9.8% thanks to the development of strategic products and marketing that have been tailored to suit prevailing weather conditions.
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Gross profit margin improved by 0.8p year-on-year due to the improvement in the discount rate. Selling, general and administrative expense ratio improved by 1.4p due to lower personnel and store rent component ratios.
■UNIQLO International: Large revenue and profit gains generated a fresh record performance
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Revenue: 1.0141 trillion yen (+14.7%), operating profit: 168.5 billion yen (+11.7%).
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Support for core products is rising worldwide and newly opened stores proved hugely successful, especially in North America and Europe.
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Southeast Asia, India & Australia, North America, and Europe all reported significant increases in revenue and profits, while UNIQLO South Korea reported higher revenue and profit.
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Greater China reported a decline in both revenue and profit in local currency terms. UNIQLO Mainland China revenue and profit both contracted on the back of a decline in consumer appetite for apparel. The market also suffered from the lack of an appropriate product mix that truly met the needs of individual regions, in the face of unusually sharp differences in regional temperatures.
■GU：Revenue rises but profit dips
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Revenue: 165.8 billion yen (+3.9%), operating profit: 13.9 billion yen (−9.3%).
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Same-store sales recorded only a marginal gain year-on-year due to a lack of hit products that captured mass fashion trends and can be sold in all seasons, as well as shortages of strong-selling items.
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The SG&A ratio increased on the back of expenses associated with the opening of the GU flagship store in the United States and higher advertising and promotion spend in Japan. Profit contracted as a result.
■Global Brands：Revenue dips but operating profit moves into the black
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Revenue: 67.7 billion yen (−2.3%), operating profit: 0.9 billion yen (compared to an operating loss of 1.7 billion yen in the previous year).
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While revenue from Theory declined, gross profit margins and SG&A ratios improved across all operations, nudging first-half operating profit into the black for the segment as a whole.
■FY2025 consolidated business estimates: Profit forecasts revised upwards. Expect to generate a record performance
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We expect to achieve full-year consolidated revenue of 3.4000 trillion yen (+9.5%), consolidated operating profit of 545.0 billion yen (+8.8%), and profit attributable to owners of the Parent of 410.0 billion yen (+10.2%).
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We have revised up our full-year forecast for operating profit by 15.0 billion yen and profit attributable to owners of the Parent by 25.0 billion yen.
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We forecast an annual dividend per share in FY2025 of 480 yen, including an interim dividend of 240 yen. This is expected to result in an increase of 80 yen in the annual dividend for FY2025, compared to FY2024.
FY2025 Performance in Focus
■UNIQLO Japan：Achieved a record performance on large revenue and profit gains after adjusting business to suit changing weather
UNIQLO Japan reported a large increase in both revenue and profit in the first half of fiscal 2025, with revenue expanding to 541.5 billion yen (+11.6% year-on-year) and operating profit rising to 97.6 billion yen (+26.4% year-on-year). First-half same-store sales (including e-commerce sales) increased by 9.8% year-on-year; due to (1) our decision to develop products and marketing strategically tailored to weather conditions, which resulted in strong sales primarily of products sold throughout the year, as well as thermal clothing; and (2) an increase in sales to visitors from outside Japan. The gross profit margin improved by 0.8 point year-on-year thanks to stricter discounting rates, while the selling, general and administrative expense ratio improved by 1.4 points year-on-year primarily due to lower personnel and store rent component ratios.
■UNIQLO International：Large revenue and profit gains generated a fresh record performance
UNIQLO International reported significant increases in revenue and profit in the first half of fiscal 2025, with revenue rising to 1.0141 trillion yen (+14.7% year-on-year) and operating profit expanding to 168.5 billion yen (+11.7% year-on-year). UNIQLO operations in Southeast Asia, India & Australia, North America, and Europe reported especially strong revenue and profit gains, as support for UNIQLO core products rose worldwide and the segment's global performance continued to expand.
Breaking down UNIQLO International performance into individual regions and markets, and viewing the results in local currency terms: in Greater China, revenue in the Mainland China market declined by approximately 4% year-on-year and operating profit contracted by roughly 11% year-on-year due primarily to lackluster consumer appetite across the market. UNIQLO Mainland China suffered from the lack of an appropriate product mix that truly met the needs of individual regions, in the face of unusually sharp differences in regional temperatures. Elsewhere in Greater China, the Hong Kong market reported a decline in revenue and a large contraction in profit, while UNIQLO operations in the Taiwan market generated higher revenue and profit. Meanwhile, South Korea generated higher revenue and profit. Revenue and profit rose considerably in the Southeast Asia, India & Australia region. Same-store sales for that region increased on the back of strong sales of Bra Tops, easy bottoms, jeans and other Summer items, as well as staple items that are sold throughout the year. HEATTECH, PUFFTECH and other Winter items also generated buoyant sales, and contributed to the year-on-year rise in same-store sales. Meanwhile, UNIQLO North America and UNIQLO Europe both reported significant increases in first-half revenue and profit, with extremely strong performances being supported by robust sales of core Winter products and hugely successful newly opened stores. E-commerce sales also expanded further on the back of the strong sales performance at our physical stores and the consequent increase in UNIQLO brand awareness in local markets. We are witnessing the formation of a virtuous cycle in which our stores are serving as media tools that help expand our customer base.
■GU：Revenue rises but profit dips
The GU business segment reported a rise in revenue but a contraction in profit in the first half of fiscal 2025, with revenue increasing to 165.8 billion yen (+3.9% year-on-year) but operating profit declining to 13.9 billion yen (−9.3% year-on-year). While GU's Barrel Leg Pants, heat-padded outerwear and Cosy Melton Parkas all sold well, same-store sales expanded by only a small amount year-on-year due to a lack of hit products that captured mass fashion trends and can be sold in all seasons, as well as shortages of strong-selling items. GU operating profit declined year-on-year due to higher store rents associated with the opening of the GU flagship store in the United States, an increase in head office costs, and a rise in advertising and promotion costs linked to the strategic increase of TV advertising in Japan.
■Global Brands：Revenue dips but operating profit moves into the black
The Global Brands segment reported a decline in revenue to 67.7 billion (−2.3% year-on-year) in the first half of fiscal 2025, but a positive operating profit of 0.9 billion yen (compared with a 1.7 billion yen loss in the first half of fiscal 2024). While our Theory brand suffered a decline in revenue in the face of sluggish sales, all operations within the Global Brands segment reported improved gross profit margins and selling, general and administrative expense ratios.
The Theory operation recorded a fall in first-half revenue but an increase in profit. The decline in revenue was the result of depressed consumer appetite for apparel at Theory Asia, and insufficient casualwear offerings designed to suit current lifestyles. The increase in operating profit was fueled by a higher gross profit margin and an improved selling, general and administrative expense ratio. Our PLST operation reported a rise in revenue and a move into the black in the first half of fiscal 2025. The strategic preparation of sufficient stock of strong-selling items, as well as ongoing transformations of store operations and store displays, both helped generate strong sales. Finally, our Comptoir des Cotonniers label reported a decline in revenue on the back of a one-third reduction in store numbers. However, same-store sales increased significantly thanks to buoyant sales of items that are now marketed in a more affordable price range. This resulted in a contraction in overall losses.
■FY2025 consolidated business estimates: Profit forecasts revised upwards. Expect to generate a record performance
In fiscal 2025, the Fast Retailing Group expects to achieve a record performance, with consolidated revenue totaling 3.4000 trillion yen (+9.5% year-on-year), business profit reaching 540.0 billion yen (+11.3% year-on-year), operating profit rising to 545.0 billion yen (+8.8% year-on-year), and profit attributable to owners of the Parent totaling 410.0 billion yen (+10.2% year-on-year). These forecasts include an upward revision of 10.0 billion yen for business profit and a 15.0 billion yen upward revision for operating profit to reflect the higher-than-anticipated first-half performance. The estimate for profit attributable owners of the Parent was also revised up by 25.0 billion yen following revisions to finance income net of costs. Furthermore, we have revised up our latest forecast for the fiscal 2025 annual dividend per share by 30 yen to 480 yen (comprising interim and year-end dividends of 240 yen each). That represents an increase of 80 yen in the full-year dividend per share compared to the previous year.
Looking at the future outlook for individual business segments in fiscal 2025, we expect UNIQLO International will generate a large increase in revenue and a single-digit year-on-year increase in operating profit in both the second half and the full business year. This is due to the fact that, while we recorded one-off gains such as the reversal of previously accounted impairment losses in fiscal 2024, we do not anticipate any such gains in fiscal 2025, and we have factored in the assumption that the UNIQLO business in the US will be affected by the tariffs announced by the US government.
Looking at individual regions, Greater China is expected to report a slight year-on-year rise in revenue and profit in the second half of fiscal 2025, and a slight decline in revenue and decline in operating profit for the full business year. UNIQLO South Korea is predicted to generate higher revenue and profit in both the second half and full business year. The Southeast Asia, India & Australia region is expected to record a large increase in revenue in the second half. Operating profit is also expected to rise strongly after stripping out the impact of higher royalty expenses. For the full business year, this region is predicted to achieve considerable revenue and profit gains. Meanwhile, North America is expected to report a considerable rise in revenue but a decline in business profit in the second half, primarily based on the assumption that the impact of tariffs announced by the US government, would result in a decline in the gross profit margin. UNIQLO North America operating profit is expected to decline by roughly 20% year-on-year in the second half because we do not anticipate any one-off gains similar to the reversal of impairment losses recorded in fiscal 2024. As a result, we anticipate a considerable rise in UNIQLO North America full-year revenue and business profit, but a more modest single-digit year-on-year increase in full-year operating profit. Elsewhere, we expect UNIQLO Europe will generate large increases in revenue and profit in both the second half of fiscal 2025 and the full business year. UNIQLO Japan is predicted to report a rise in revenue and a slight increase in profit in the second half of fiscal 2025, and a rise in revenue and a large increase in profit for the full business year.
The GU operation is expected to generate slightly higher revenue and a steady operating profit in the second half. While GU is expected to report a rise in full-year revenue, full-year operating profit will likely contract year-on-year. Finally, the Global Brands segment is expected to report a decline in revenue but a steady operating profit in the second half, and then a decline in revenue but an increase in operating profit for the full business year.
Fast Retailing Co., Ltd. discloses business results data and offers a variety of press releases on its IR website https://www.fastretailing.com/eng/ir/.
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