Uniqlo-Owner Fast Retailing Hits ¥3 Trillion in Sales in FY24
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Uniqlo-Owner Fast Retailing Hits ¥3 Trillion in Sales in FY24

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Japanese retail holding company Fast Retailing announced impressive results for FY24, powered by its brand Uniqlo’s global growth.

Japan-based Fast Retailing Co. (JP:9983), the owner of the famous brand Uniqlo, has hit the mark of ¥3 trillion in sales for the first time in FY24. This marked a significant milestone for the company in its global expansion efforts. The company’s consolidated revenue increased by 12.2% year-over-year to ¥3.1 trillion, while operating profit surged 31.4% to ¥500.9 billion in FY24. Fast Retailing shares gained 1.28% after the results announcement.

Fast Retailing is a global manufacturer and retailer specializing in a wide range of clothing. It is best known for its flagship brand, Uniqlo, which has a significant global presence.

Fast Retailing Shines on Uniqlo’s Global Expansion

Fast Retailing growth was mainly driven by Uniqlo’s expansion into Western markets. Uniqlo International reported solid growth, with revenue increasing 19.1% to ¥1.71 trillion. Meanwhile, Uniqlo Japan experienced a 4.7% rise in revenue due to a strong summer season, with sustained high demand for key products.

Moreover, Uniqlo’s operations in North America and Europe reported double-digit increases in both revenue and operating profit, underscoring the rising popularity of the brand in these markets.

On the flip side, the brand faced challenges in China during the second half, with declining revenue and profits. Overall, for FY24, revenue increased 9.2% year-on-year to ¥677 billion in China, while operating profit stood at ¥104.8 billion, up 0.5%.

For FY25, Fast Retailing aims to achieve a 9.5% rise in consolidated revenue to ¥3.4 trillion. Additionally, operating profit is expected to increase by 5.8% to ¥530.0 billion.

What Is the Target Price for Fast Retailing Stock?

In terms of share price appreciation, analysts do not anticipate any significant increase. Year-to-date, the stock has grown by nearly 50%.

As per the consensus among analysts on TipRanks, 9983 stock has been assigned a Hold rating based on one Buy and four Hold recommendations. The Fast Retailing share price target of ¥46,100.63 implies a downside of 9% from the current share price level.

See more 9983 analyst ratings.

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