Fast Retailing (9983) Q1 2025 earnings summary

Executive summary

• Revenue rose 10.4% year-over-year to ¥895.1–¥895.2bn, operating profit up 7.4% to ¥157.5–¥157.6bn, and profit attributable to owners up 22.4% to ¥131.9–¥131.96bn, driven by strong UNIQLO Japan and international growth.

• UNIQLO Japan and international operations in Southeast Asia, India, Australia, North America, and Europe drove group growth, offsetting slower sales in Mainland China and GU.

• GU saw higher revenue but a sharp profit decline; Global Brands posted lower revenue but higher profit.

• The company continues to focus on global expansion, sustainability, and digital transformation, with ongoing investments in human capital and product innovation.

• Group sales slightly below plan, but management expects to make up the shortfall in 2Q.

Financial highlights

• Gross profit margin stable at 54.5%; SG&A ratio improved to 36.9%.

• Net finance income of ¥39.0bn, with significant foreign exchange gains and interest income.

• Basic EPS rose to ¥430.19 from ¥351.50 year-on-year.

• Cash and cash equivalents at end-November 2024: ¥1,198.8–¥1,200bn, up ¥311.4bn from prior year.

• Operating cash flow was ¥87.7bn, down from ¥107.2bn year-on-year; investing cash outflow ¥3.6bn, financing cash outflow ¥106.3bn.

Outlook and guidance

• FY2025 full-year estimates unchanged: revenue projected at ¥3,400bn (+9.5% y/y), operating profit at ¥530bn (+5.8% y/y), and profit attributable to owners at ¥385bn (+3.5% y/y).

• Dividend forecast raised to ¥450 per share for FY2025.

• UNIQLO Japan expected to exceed plan, while Greater China and GU are tracking below plan.

• Strong performance anticipated in Southeast Asia, India, Australia, Europe, and North America.

• GU expected to see profit fall in 1H due to US store opening costs, but full-year profit and revenue gains are forecast.