Fast Retailing (9983) Q3 2024 earnings summary

Executive summary

• Achieved record consolidated revenue of ¥2.37 trillion (+10.4% YoY) and operating profit of ¥401.8 billion (+21.5% YoY) for the nine months ended May 2024, driven by strong UNIQLO performance in North America, Europe, Southeast Asia, and Japan.

• Net income attributable to owners increased 31.2% to ¥312.8 billion.

• Focused on global expansion, digital transformation, and strengthening core brands.

• Greater China underperformed due to weak demand, unseasonal weather, and internal issues.

• Revised FY2024 guidance upward, expecting new record highs in revenue and profit.

Financial highlights

• Gross profit margin improved to 54.0% (+2.4p YoY); operating profit margin to 17.0% (+1.6p YoY).

• Basic EPS for the period was ¥1,020.02, up from ¥777.90 YoY.

• Cash and cash equivalents at end-May: ¥1.10 trillion, up ¥194.4 billion from August 2023.

• Net income attributable to owners of the parent increased 31.2% to ¥312.8bn.

• Total assets increased to ¥3.68 trillion (+¥380.4 billion from August 2023); equity attributable to owners rose to ¥2.14 trillion.

Outlook and guidance

• FY2024 revenue forecast raised to ¥3.07 trillion (+11.0% YoY), operating profit to ¥500 billion (+31.2%).

• Net income forecast at ¥365 billion (+16.7%), with finance income expected to remain strong.

• Basic EPS forecast for the year ending August 2024 is ¥1,190.09.

• Dividend per share forecast raised to ¥400 for FY2024.

• UNIQLO International, Japan, and GU segments all expected to post higher full-year revenue and profit; Global Brands to return to operating profit.