就该事业分部第三季度单季旗下各地区业绩来看(以当地币值计)，大中华地区之中，中国大陆市场收益 较上年度同期减少约5%，经营溢利同比下降约3%。这主要是因为市场整体消费意愿低落，同时截至5 月初仍持续低温等因素，使实际需求无法提振。香港及台湾市场虽录得收益增长，但因成本率上升使毛 利率下降，加上行政开支等占收益比率升高，致使经营溢利大幅减少。南韩的收益及溢利则皆录得大幅 增长，这是由于其策略性地备妥春季及全年性商品的库存，成功推展换季时期业绩，以及行销策略奏效 所致。东南亚、印度及澳洲地区录得收益大幅增长、溢利上升。该地区以夏季商品为中心，销情旺盛， 推使同店销售净额增长。北美地区录得收益及溢利双双大幅增长，欧洲录得收益大幅增长、溢利上升， 业绩持续表现良好。在欧美地区策略性加强行销活动下，以主力商品为首带动销售表现亮丽。同时，前 三季度期间开设的新店销情不俗，不但能持续扩展顾客层并提高品牌知名度。 在GU(极优)事业分部方面，前三季度收益总额为2,562亿日圆(同比增长4.0%)，经营溢利总额为263亿日 圆(同比减少10.7%)，录得收益增长但溢利大幅下降。其中，第三季度单季亦录得收益增长、溢利大幅 下降。 ...

Core Insights - The company reported a revenue of 26,167.08 billion yen for the nine months ending May 31, 2025, representing a year-on-year growth of 10.6% [1] - Net profit attributable to the parent company was 3,390.99 billion yen, an increase of 8.4% year-on-year, with basic earnings per share at 1,105.36 yen [1] Domestic Business Performance (UNIQLO Japan) - Revenue for the first three quarters reached 801.4 billion yen, up 11.0% year-on-year, with operating profit at 150.6 billion yen, reflecting a 17.8% increase [1] - Same-store sales increased by 7.5% due to strong sales of seasonal products during Thanksgiving and Golden Week [1] - Gross margin decreased by 2.1 percentage points due to a weaker yen affecting procurement costs and increased discount rates for spring inventory clearance [1] - Selling, general, and administrative expenses as a percentage of revenue improved by 1.2 percentage points due to rising sales [1] International Business Performance (UNIQLO Overseas) - Revenue for the first three quarters was 1,457.1 billion yen, a year-on-year increase of 12.7%, with operating profit at 240.6 billion yen, up 8.4% [2] - Strong customer support for core products and the introduction of high-quality stores contributed to robust performance [2] GU Business Performance - Revenue for the first three quarters was 256.2 billion yen, a 4.0% increase, but operating profit fell by 10.7% to 26.3 billion yen [2] - Despite slight growth in same-store sales, overall performance was hindered by insufficient inventory and marketing for certain products [2] - Increased cost rates due to a weaker yen and rising personnel costs negatively impacted profit margins [2] Global Brands Business Performance - Revenue decreased to 100.5 billion yen, down 3.1% year-on-year, while operating profit turned positive at 2.8 billion yen compared to a loss of 0.3 billion yen in the previous year [3] - The Theory brand faced challenges in Japan and Asia, leading to declines in revenue and profit [3] - PLST brand saw significant growth in both revenue and operating profit, driven by popular new products and successful holiday promotions [3] Market Activity - The company plans to apply for the resumption of trading of its Hong Kong depositary receipts on July 11, 2025 [4]

[Consolidated Results Overview](index=1&type=section&id=Consolidated%20Results%20Overview) [Financial Summary](index=1&type=section&id=1.%20Consolidated%20Results) For the nine months ended May 31, 2025, the Group achieved significant growth in both revenue and operating profit, marking its best-ever performance, with full-year dividend forecast at JPY 480.00 per share Consolidated Operating Results (For the Nine Months Ended May 31, 2025) | Indicator | Nine Months Ended May 31, 2025 (Million JPY) | YoY Change (%) | | :--- | :--- | :--- | | Revenue | 2,616,708 | 10.6% | | Operating Profit | 450,952 | 12.2% | | Profit Before Income Tax | 520,506 | 8.9% | | Profit for the Period | 359,607 | 8.3% | | Profit Attributable to Owners of Parent | 339,099 | 8.4% | | Basic Earnings Per Share (JPY) | 1,105.36 | - | Consolidated Financial Position | Indicator | As of May 31, 2025 (Million JPY) | As of August 31, 2024 (Million JPY) | | :--- | :--- | :--- | | Total Assets | 3,698,193 | 3,587,565 | | Total Equity | 2,167,774 | 2,068,254 | | Equity Attributable to Owners of Parent | 2,114,970 | 2,016,535 | Dividend Information | Fiscal Year | Q2 End-of-Period Dividend (JPY) | Full-Year Forecast Dividend (JPY) | | :--- | :--- | :--- | | Ended August 31, 2025 | 240.00 | 480.00 | [Business Segment Performance](index=4&type=section&id=Business%20Segment%20Performance) The Group's overall performance growth was primarily driven by the UNIQLO business, with strong performance in Japan, Europe, North America, and Southeast Asia, while GU revenue grew but profit significantly declined, and Global Brands successfully returned to profitability - The Group achieved its best-ever performance, primarily driven by the strong performance of UNIQLO businesses in Japan, Europe, North America, Southeast Asia, India, Australia, and South Korea[11](index=11&type=chunk) - The Group aims to become the "world's number one brand," with strategic priorities including human capital investment, integrating business with sustainability, evolving into a "digital consumer retail company," diversifying global revenue pillars, and expanding the GU and Global Brands businesses[12](index=12&type=chunk) [UNIQLO Japan](index=4&type=section&id=UNIQLO%20Japan) UNIQLO Japan recorded significant increases in both revenue and operating profit, with net same-store sales growing by 7.5%, and despite a weaker yen increasing cost ratios, sales growth effectively improved various expense ratios UNIQLO Japan Q1-Q3 Performance | Indicator | Amount (Billion JPY) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 801.4 | 11.0% | | Total Operating Profit | 150.6 | 17.8% | - Performance growth was driven by strong sales of year-round and summer products; however, gross profit margin decreased by **2.1 percentage points** due to yen depreciation and increased discount promotions[13](index=13&type=chunk) [UNIQLO International](index=4&type=section&id=UNIQLO%20International) UNIQLO International achieved significant revenue growth and increased profit, with strong performance in South Korea, Southeast Asia, North America, and Europe, though Greater China saw declining performance due to low consumer sentiment UNIQLO International Q1-Q3 Performance | Indicator | Amount (Billion JPY) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 1,457.1 | 12.7% | | Total Operating Profit | 240.6 | 8.4% | - In local currency, Greater China's Q3 revenue and operating profit decreased by approximately **5%** and **3%** respectively, while South Korea, Southeast Asia, India, Australia, North America, and Europe all recorded significant increases in revenue and profit[15](index=15&type=chunk) [GU](index=5&type=section&id=GU) GU business recorded revenue growth but a significant profit decline, as insufficient stock of popular summer items, a weaker yen, and increased personnel costs collectively led to the profit decrease GU Q1-Q3 Performance | Indicator | Amount (Billion JPY) | YoY Change | | :--- | :--- | :--- | | Total Revenue | 256.2 | +4.0% | | Total Operating Profit | 26.3 | -10.7% | - Key reasons for the profit decline include insufficient stock and promotion of some high-potential products, increased cost ratios due to a weaker yen, and higher personnel expense ratios from increased wages[17](index=17&type=chunk) [Global Brands](index=5&type=section&id=Global%20Brands) The Global Brands segment successfully returned to profitability with an operating profit of JPY 2.8 billion, driven by strong PLST performance and narrowed losses at Comptoir des Cotonniers, offsetting the decline in Theory Global Brands Q1-Q3 Performance | Indicator | Amount (Billion JPY) | YoY Change | | :--- | :--- | :--- | | Total Revenue | 100.5 | -3.1% | | Total Operating Profit | 2.8 | Returned to Profitability (JPY 0.3 Billion Loss in Prior Period) | - Theory business saw revenue and profit decline due to challenges in Japan and Asian markets; PLST business achieved significant growth in both due to popular new products; Comptoir des Cotonniers narrowed its losses due to increased same-store sales[18](index=18&type=chunk) [Sustainability](index=5&type=section&id=Sustainability) The Group advances sustainability activities across six key areas, including expanding RE.UNIQLO for circularity, strengthening supply chain human rights, achieving a third consecutive CDP "A" rating for GHG reduction, and actively contributing to communities and promoting internal diversity and inclusion - Through "RE.UNIQLO STUDIO," the company provides clothing repair and upcycling services, expanded to **62 stores** in **22 countries and regions** as of May 2025[19](index=19&type=chunk) - To address the impact of climate change on workers, the company partnered with the University of London in April 2025 to research the health effects of heat stress on workers in Cambodia[20](index=20&type=chunk) - The Group received an "A" rating from the international non-profit CDP for climate change for the third consecutive year in 2024, recognizing its proactive emission reduction measures and information transparency[21](index=21&type=chunk) - The company supports community projects such as Myanmar earthquake relief and youth vocational training in India through the "PEACE FOR ALL" program and direct donations[23](index=23&type=chunk) [Financial Position and Cash Flow Information](index=7&type=section&id=(2)%20Financial%20Position%20and%20Cash%20Flow%20Information) As of period-end, the Group's total assets increased by JPY 110.6 billion and total liabilities by JPY 11.1 billion compared to the previous fiscal year-end; net cash from operating activities was JPY 427.1 billion, but net cash outflows from investing and financing activities led to a JPY 201.7 billion decrease in cash and cash equivalents at period-end - The increase in total assets was primarily due to increases in other current financial assets, property, plant, and equipment, while the slight increase in total liabilities was mainly due to an increase in other current liabilities[25](index=25&type=chunk) Cash Flow Summary (For the Nine Months Ended May 31, 2025) | Cash Flow Activity | Amount (Billion JPY) | | :--- | :--- | | Net Cash from Operating Activities | 427.1 | | Net Cash Used in Investing Activities | (372.3) | | Net Cash Used in Financing Activities | (271.4) | | **Net Decrease in Cash and Cash Equivalents** | **(201.7)** | [Performance Forecast](index=2&type=section&id=(3)%20Qualitative%20Information%20on%20Consolidated%20Business%20Performance%20Forecasts) The company maintains its previously announced full-year consolidated business performance forecast for the period ending August 31, 2025, without revision, projecting full-year revenue of JPY 3,400.0 billion and operating profit of JPY 545.0 billion FY2025 Full-Year Performance Forecast | Indicator | Amount (Million JPY) | YoY Change (%) | | :--- | :--- | :--- | | Revenue | 3,400,000 | 9.5% | | Operating Profit | 545,000 | 8.8% | | Profit Before Income Tax | 635,000 | 14.0% | | Profit Attributable to Owners of Parent | 410,000 | 10.2% | | Basic Earnings Per Share (JPY) | 1,336.51 | - | - The company confirms no changes to the full-year consolidated business performance forecast announced on April 10, 2025, at this stage[31](index=31&type=chunk) [Interim Condensed Consolidated Financial Statements](index=8&type=section&id=2.%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20and%20Key%20Notes) [Consolidated Statement of Financial Position](index=8&type=section&id=(1)%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section details the assets, liabilities, and equity as of May 31, 2025, compared to August 31, 2024, with total assets at period-end of JPY 3,698.1 billion and total equity of JPY 2,167.7 billion Consolidated Statement of Financial Position Summary (As of May 31, 2025) | Item | Amount (Million JPY) | | :--- | :--- | | **Assets** | | | Total Current Assets | 2,322,705 | | Total Non-Current Assets | 1,375,488 | | **Total Assets** | **3,698,193** | | **Liabilities and Equity** | | | Total Current Liabilities | 903,240 | | Total Non-Current Liabilities | 627,178 | | **Total Liabilities** | **1,530,419** | | **Total Equity** | **2,167,774** | [Consolidated Statement of Profit or Loss and Comprehensive Income](index=9&type=section&id=(2)%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section details the statement of profit or loss and comprehensive income for the nine months ended May 31, 2025, reporting gross profit of JPY 1,408.5 billion, operating profit of JPY 450.9 billion, and profit for the period of JPY 359.6 billion Consolidated Statement of Profit or Loss Summary (For the Nine Months Ended May 31, 2025) | Item | Amount (Million JPY) | | :--- | :--- | | Revenue | 2,616,708 | | Gross Profit | 1,408,532 | | Operating Profit | 450,952 | | Profit Before Income Tax | 520,506 | | Profit for the Period | 359,607 | - Total comprehensive income for the period was **JPY 334.6 billion**, a decrease from **JPY 526.8 billion** in the prior year, primarily due to foreign currency translation differences for overseas operations shifting from positive to negative, resulting in a loss in other comprehensive income[37](index=37&type=chunk) [Consolidated Statement of Changes in Equity](index=10&type=section&id=(3)%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details changes in share capital, retained earnings, treasury shares, and other equity components for the nine months ended May 31, 2025, showing an increase in retained earnings due to profit, but a decrease in other equity components due to reduced foreign currency translation reserves - As of May 31, 2025, equity attributable to owners of the parent increased from **JPY 2,016.5 billion** at the beginning of the period to **JPY 2,114.9 billion**, primarily driven by profit for the period of **JPY 339.0 billion**, partially offset by dividends paid of **JPY 142.6 billion** and other comprehensive losses[41](index=41&type=chunk) [Consolidated Statement of Cash Flows](index=11&type=section&id=(4)%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities for the period, showing strong cash inflows from operations offset by outflows for fixed deposits, equipment purchases, and dividend payments, leading to a net decrease in total cash Consolidated Statement of Cash Flows Summary (For the Nine Months Ended May 31, 2025) | Item | Amount (Million JPY) | | :--- | :--- | | Net Cash from Operating Activities | 427,132 | | Net Cash Used in Investing Activities | (372,330) | | Net Cash Used in Financing Activities | (271,499) | | **Net Decrease in Cash and Cash Equivalents** | **(201,799)** | | Cash and Cash Equivalents at End of Period | 991,761 | [Notes to Financial Statements](index=12&type=section&id=(6)%20Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides supplementary notes to the financial statements, covering key information such as accounting policies, segment information, expense breakdowns, and earnings per share calculations, to aid in understanding the financial report content [Segment Information](index=12&type=section&id=2.%20Segment%20Information) This note details revenue and operating profit for the four business segments (UNIQLO Japan, UNIQLO International, GU, Global Brands) and regional markets, with UNIQLO International being the largest contributor to both revenue and profit Segment Performance (For the Nine Months Ended May 31, 2025) | Reportable Segment | Revenue (Million JPY) | Operating Profit/(Loss) (Million JPY) | | :--- | :--- | :--- | | UNIQLO Japan | 801,422 | 150,601 | | UNIQLO International | 1,457,135 | 240,649 | | GU | 256,287 | 26,333 | | Global Brands | 100,586 | 2,865 | | **Total** | **2,615,432** | **420,450** | Revenue by Region (For the Nine Months Ended May 31, 2025) | Region | Revenue (Million JPY) | Percentage of Total (%) | | :--- | :--- | :--- | | Japan | 801,422 | 30.6 | | Greater China | 510,491 | 19.5 | | South Korea・Southeast Asia・India・Australia | 469,223 | 17.9 | | Europe | 276,492 | 10.6 | | North America | 200,927 | 7.7 | [Selling, General and Administrative Expenses](index=15&type=section&id=4.%20Selling%2C%20General%20and%20Administrative%20Expenses) Total selling, general and administrative expenses for the period were JPY 964.9 billion, an increase from the prior year, with key expense items being salaries, depreciation and amortization, and logistics costs Selling, General and Administrative Expenses Breakdown (For the Nine Months Ended May 31, 2025) | Item | Amount (Million JPY) | | :--- | :--- | | Salaries | 352,149 | | Depreciation and Amortization | 159,702 | | Logistics Costs | 110,827 | | Rent Expenses | 96,745 | | Advertising and Promotion | 85,498 | | Other | 160,062 | | **Total** | **964,986** | [Finance Income and Costs](index=16&type=section&id=6.%20Finance%20Income%20and%20Finance%20Costs) The period recorded net finance income of JPY 69.5 billion, primarily from interest income (JPY 49.2 billion) and non-operating exchange gains (JPY 29.7 billion), while finance costs mainly comprised interest expenses (JPY 9.4 billion) Finance Income and Costs Breakdown (For the Nine Months Ended May 31, 2025) | Item | Amount (Million JPY) | | :--- | :--- | | **Finance Income** | **79,020** | | Of which: Interest Income | 49,289 | | Of which: Exchange Gains | 29,731 | | **Finance Costs** | **(9,467)** | | Of which: Interest Expenses | (9,467) | | **Net Finance Income** | **69,553** | [Earnings Per Share](index=17&type=section&id=7.%20Earnings%20Per%20Share) For the nine months ended May 31, 2025, basic earnings per share were JPY 1,105.36, higher than JPY 1,020.02 in the prior year, with diluted earnings per share at JPY 1,103.68 Earnings Per Share Calculation | Indicator | Nine Months Ended May 31, 2025 | | :--- | :--- | | Profit Attributable to Owners of Parent for the Period (Million JPY) | 339,099 | | Weighted Average Number of Ordinary Shares for the Period (Shares) | 306,778,343 | | **Basic Earnings Per Share (JPY)** | **1,105.36** | | **Diluted Earnings Per Share (JPY)** | **1,103.68** | [Review Report and Other Information](index=18&type=section&id=Review%20Report%20and%20Other%20Information) [Review Report on Interim Condensed Consolidated Financial Statements](index=18&type=section&id=3.%20Review%20Report%20on%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Independent auditor Deloitte Touche Tohmatsu LLC has reviewed these interim condensed consolidated financial statements, and based on the review, the auditor found no matters leading them to believe the financial statements are not prepared in all material respects in accordance with relevant accounting standards - Auditor's conclusion: We have not identified any matters that lead us to believe the interim condensed consolidated financial statements are not prepared in all material respects in accordance with Article 5-2 of the Tokyo Stock Exchange Quarterly Financial Statements Standards[70](index=70&type=chunk) - The scope of the review is significantly narrower than an audit conducted in accordance with generally accepted auditing standards in Japan, primarily involving inquiries with financial personnel and analytical procedures[74](index=74&type=chunk) [Resumption of Trading](index=20&type=section&id=4.%20Resumption%20of%20Trading) The company has applied for the resumption of trading of its Hong Kong Depositary Receipts on the Stock Exchange from 9:00 AM on July 11, 2025 - At the company's request, its Hong Kong Depositary Receipts were temporarily suspended from trading from 1:00 PM on July 10, 2025, pending the release of this earnings announcement, and will resume trading from 9:00 AM on July 11, 2025[79](index=79&type=chunk)

Core Viewpoint - Fast Retailing (迅销) announced a short trading suspension of its Hong Kong depositary receipts on July 10, 2025, at 1 PM, pending the release of its third-quarter earnings announcement for the nine months ending May 31, 2025 [1]. Summary by Category - **Company Announcement** - Fast Retailing's Hong Kong depositary receipts will be suspended from trading on the Hong Kong Stock Exchange starting at 1 PM on July 10, 2025 [1]. - The suspension is due to the upcoming announcement of the company's third-quarter performance [1].

Group 1: Design of Fitting Rooms - The design of fitting mirrors in fast fashion stores employs optical tricks to enhance the visual appeal of customers, such as tilting mirrors to create a perspective effect that can visually elongate legs by up to 20% [3] - The shape and size of mirrors are carefully selected, with narrow and elongated designs contributing to a taller appearance, while specific curvatures can create slimming effects [3] - High-quality mirrors with enhanced reflectivity and specific color tints are used to improve the overall image quality, making the reflection appear more flattering [4] Group 2: Lighting Effects - Lighting in fitting rooms is strategically designed to eliminate shadows and create a flattering ambiance, often using soft, diffused light from multiple angles [5][6] - The color temperature of the lighting is typically warm, simulating natural light conditions that enhance skin tone and create a welcoming atmosphere [5][6] Group 3: Psychological Impact - The overall environment of fitting rooms is crafted to evoke a sense of exclusivity and luxury, enhancing customer satisfaction with their appearance [8] - The use of simple backgrounds and private spaces allows customers to focus on their reflection, increasing their confidence and perceived value of the clothing [8] - Positive reinforcement from the environment and staff can lead to heightened self-esteem and a stronger desire to purchase, as customers associate their idealized image with social approval [10][11]

Group 1 - The article emphasizes the importance of Asian equities (excluding China) in investment portfolios, highlighting that they are often overlooked and under-allocated by investors [1] - The author employs a fundamental bottom-up approach combined with macroeconomic analysis to identify stocks poised to benefit from global trends, focusing on the Financials, Industrials, and Consumer Discretionary sectors [1] - The intention behind writing on Seeking Alpha is to share insights and expand the investment universe for readers interested in Asian equities listed in US markets [1]

Core Insights - Uniqlo opened its first city flagship store in Southwest China at Chengdu MixC, featuring a new two-story layout of nearly 2000 square meters and offering a wide range of seasonal products, including three Chengdu-exclusive collections and special opening gifts [1][3] Group 1: Store Strategy - The city flagship store concept serves as a regional information hub, allowing for localized product offerings that resonate with local culture, such as Chengdu-themed items featuring pandas and local cuisine [3] - Uniqlo has over 900 stores in more than 200 cities in China, surpassing its store count in Japan, and plans to open two more stores in Chengdu, bringing the total to 33 in the city and 46 in Sichuan province [5] Group 2: Financial Performance - Fast Retailing Group reported a 12.0% year-on-year increase in consolidated revenue for the first half of fiscal year 2025, amounting to 1,790.1 billion yen, with operating profit rising by 18.3% to 304.2 billion yen [5][7] - In the Greater China region, Uniqlo's revenue increased from approximately 360.5 billion yen to 361.7 billion yen year-on-year, with a 9.2% growth in revenue and a 0.5% increase in operating profit for fiscal year 2024 [7]

Financial Performance - Total revenue for the first half of the fiscal year 2025 reached ¥1,790.198 billion, representing a 12.0% increase year-over-year[8] - Operating profit for the same period was ¥304.217 billion, an 18.3% increase compared to the previous year[8] - Pre-tax profit increased by 21.5% to ¥363.724 billion, with net profit attributable to shareholders rising 19.2% to ¥233.566 billion[8] - Gross profit margin improved by 0.4 percentage points to 53.3%, while selling, general, and administrative expenses as a percentage of revenue decreased by 0.7 percentage points to 36.5%[8] - Same-store sales, including online stores, grew by 9.8% due to strong performance in seasonal products and increased purchases from inbound travelers[10] - UNIQLO's revenue accounted for 86.9% of total revenue, amounting to ¥1,555,701 million, while GU contributed ¥165,844 million, representing 9.3%[73] - Basic earnings per share improved from ¥638.79 to ¥761.38, indicating an increase of approximately 19%[48] Segment Performance - The Japanese UNIQLO segment reported revenue of ¥541.5 billion, an 11.6% increase, and operating profit of ¥97.6 billion, a 26.4% increase[10] - Overseas UNIQLO revenue for the first half of the fiscal year reached ¥1,014.1 billion, a year-on-year increase of 14.7%, with operating profit totaling ¥168.5 billion, up 11.7%[11] - The Greater China region saw a revenue decline of approximately 4% and an operating profit decrease of about 11% due to low consumer sentiment and mismatched product offerings[11] - Southeast Asia, India, and Australia recorded significant revenue and operating profit growth, driven by strong sales of summer and winter products[11] - GU's revenue for the first half of the fiscal year was ¥165.8 billion, a year-on-year increase of 3.9%, but operating profit decreased by 9.3% to ¥13.9 billion due to increased costs from flagship store openings and advertising[13] - The global brand segment reported revenue of ¥67.7 billion, a decrease of 2.3%, but achieved an operating profit of ¥0.9 billion, compared to a loss of ¥1.7 billion in the previous year[14] Sustainability Initiatives - The company continues to focus on sustainable development and the "LifeWear" concept in its production activities[9] - The company aims to reduce greenhouse gas emissions from stores and major offices by 90% by August 2030 compared to August 2019 levels[18] - As of August 2024, the company has reduced its greenhouse gas emissions by 83.3% compared to August 2019, with supply chain emissions down by 18.6%[18] - The introduction of the "RE.UNIQLO" initiative aims to promote a circular economy through clothing repair and customization services, expanding to 57 stores across 22 countries by February 2025[15] - The company has achieved an 84.7% adoption rate of renewable energy within its operations, up from 67.6% in the previous year[18] Cash Flow and Assets - The net cash generated from operating activities was ¥298.228 billion, while cash used in investing activities was ¥382.127 billion[5] - The total assets increased to ¥3,729.143 billion, with equity attributable to shareholders rising to ¥2,196.302 billion[5] - Operating cash flow for the six months ended February 28, 2025, generated a net cash of ¥2,982 billion, down from ¥3,223 billion in the same period last year[22] - Investment cash flow for the same period resulted in a net cash usage of ¥3,821 billion, significantly higher than ¥541 million in the previous year[23] - Financing cash flow for the six months ended February 28, 2025, showed a net cash usage of ¥1,502 billion, compared to ¥1,314 billion in the same period last year[24] Shareholder Information - The total number of issued shares as of February 28, 2025, was 318,220,968 shares[31] - The company has established a stock option plan allowing employees to purchase a total of 14,931 shares at an exercise price of ¥50,183[32] - The Master Trust Bank of Japan, Ltd. holds 62,559 thousand shares, representing 20.39% of the total issued shares[37] - The company holds 11,430,496 treasury shares, accounting for 3.59% of the total issued shares[43] - The total number of shares held by the top ten shareholders amounts to 236,390 thousand shares, which is 77.05% of the total issued shares[37] Financial Statements and Auditing - The financial statements have been prepared in accordance with international accounting standards and relevant financial regulations[45] - Deloitte Touche Tohmatsu LLC has reviewed the interim consolidated financial statements for the six-month period ending February 28, 2025[46] - Management is responsible for preparing the interim condensed consolidated financial statements in accordance with International Accounting Standard 34, ensuring fair representation and internal controls to prevent material misstatements due to fraud or error[93] - The auditor's responsibility includes reviewing the interim condensed consolidated financial statements and ensuring compliance with relevant auditing standards, with a focus on significant uncertainties that may affect the group's ability to continue as a going concern[95] - The overall presentation, structure, and content of the interim condensed consolidated financial statements must comply with International Accounting Standard 34, ensuring that disclosures are adequate and reflect relevant transactions and events[98]

Core Insights - The company reported a revenue of approximately 1,790.198 billion yen for the six months ending February 28, 2025, representing a year-on-year growth of 12% [1] - The total operating profit reached 304.2 billion yen, an increase of 18.3% year-on-year, while profit attributable to the parent company was 233.566 billion yen, up 19.2% [1] - The company plans to resume trading of its Hong Kong Depositary Receipts on April 11, 2025 [1] Domestic Operations (UNIQLO Japan) - For the first half of the fiscal year, revenue from the UNIQLO Japan segment totaled 541.5 billion yen, reflecting an 11.6% year-on-year increase, with operating profit at 97.6 billion yen, up 26.4% [1] - The strong sales performance was driven by strategic product offerings and marketing initiatives in response to temperature changes, with same-store sales (including online) increasing by 9.8% [1] - Gross margin improved by 0.8 percentage points due to better discount rates, while the ratio of selling, general, and administrative expenses to revenue improved by 1.4 percentage points due to lower personnel and rental costs [1] International Operations (UNIQLO Overseas) - The overseas UNIQLO segment reported revenue of 1,014.1 billion yen, a 14.7% year-on-year increase, with operating profit at 168.5 billion yen, up 11.7% [2] - Significant growth was observed in Southeast Asia, India, Australia, North America, and Europe, driven by increasing global support for UNIQLO's core products [2] GU Segment - The GU segment generated revenue of 165.8 billion yen, a 3.9% year-on-year increase, but operating profit decreased by 9.3% to 13.9 billion yen [2] - Despite popularity in certain products, the segment faced challenges due to a lack of trending items and insufficient inventory of popular products, leading to only a slight increase in same-store sales [2] - The decline in operating profit was attributed to increased rental and headquarters costs, as well as higher advertising expenses due to strategic increases in television advertising in Japan [2] Global Brands Segment - The global brands segment reported revenue of 67.7 billion yen, a decrease of 2.3% year-on-year, but achieved an operating profit of 0.9 billion yen, compared to a loss of 1.7 billion yen in the previous year [3] - While the Theory brand experienced a decline in revenue, the segment focused on improving gross margins and reducing the ratio of selling, general, and administrative expenses to revenue, leading to a turnaround in operating performance [3]

Financial Performance - For the six months ended February 28, 2025, total revenue reached ¥1,790,198 million, representing a 12.0% increase year-over-year[5] - Operating profit for the same period was ¥304,217 million, reflecting an 18.3% year-over-year growth[5] - Profit before tax increased by 21.5% to ¥363,724 million, while net profit attributable to shareholders rose by 19.2% to ¥233,566 million[5] - UNIQLO Japan's revenue for the first half of the fiscal year reached ¥541.5 billion, a year-on-year increase of 11.6%, with operating profit totaling ¥97.6 billion, up 26.4%[14] - UNIQLO overseas revenue for the first half of the fiscal year was ¥1,014.1 billion, reflecting a 14.7% year-on-year growth, while operating profit was ¥168.5 billion, an increase of 11.7%[15] - The company forecasts total revenue for the fiscal year ending August 31, 2025, to be ¥3,400,000 million, with an expected operating profit of ¥545,000 million, indicating a 9.5% and 8.8% increase, respectively[8] - The net profit attributable to shareholders for the fiscal year ending August 31, 2025, is projected to be ¥410,000 million, a 10.2% increase[8] Assets and Liabilities - The total assets as of February 28, 2025, amounted to ¥3,729,143 million, with total equity of ¥2,258,711 million, resulting in an equity ratio of 58.9%[6] - As of February 28, 2025, total assets amounted to ¥3,729.1 billion, an increase of ¥141.5 billion from the previous fiscal year-end[25] - Total liabilities as of February 28, 2025, were ¥1,470.4 billion, a decrease of ¥48.8 billion compared to the previous fiscal year-end[25] - Total equity increased to ¥2,258.7 billion as of February 28, 2025, up by ¥190.4 billion from the previous fiscal year-end[26] Sustainability Initiatives - The group aims to reduce greenhouse gas emissions from stores and major offices by 90% by August 2030 compared to August 2019 levels, with a current reduction of 83.3% achieved[22] - The introduction of renewable energy within the group has reached 84.7%, up from 67.6% in the previous year, highlighting the commitment to sustainability[22] - The company plans to invest in human capital and sustainable business practices, aligning with its vision of becoming a "global first brand" trusted by customers[13] - The company will continue to promote its "LifeWear" concept, emphasizing quality, sustainability, and recyclability in its clothing production[13] - The group has expanded its "RE.UNIQLO" initiative, providing repair and customization services in 57 stores across 22 countries and regions by February 2025[20] Market Performance - Same-store sales in Japan increased by 9.8%, driven by strong performance in seasonal and warm clothing products, as well as purchases from inbound travelers[14] - In the Greater China region, revenue decreased by approximately 4% year-on-year, with operating profit declining by about 11%, attributed to low consumer sentiment and temperature discrepancies across regions[16] - UNIQLO's same-store sales in North America and Europe saw significant growth, supported by strong sales of winter products and successful new store openings[16] - GU's revenue for the first half of the fiscal year was ¥165.8 billion, a 3.9% year-on-year increase, but operating profit fell by 9.3% to ¥13.9 billion due to insufficient hot-selling items and increased advertising costs[18] - The global brand segment reported revenue of ¥67.7 billion, a decrease of 2.3%, but operating profit turned positive at ¥0.9 billion compared to a loss of ¥1.7 billion in the previous year[19] Cash Flow and Investments - Operating cash flow for the six months ended February 28, 2025, generated a net cash of ¥298.2 billion, compared to ¥322.3 billion for the same period last year[28] - Investment cash flow for the six months ended February 28, 2025, used a net cash of ¥382.1 billion, significantly higher than ¥5.41 billion for the same period last year[29] - Financing cash flow for the six months ended February 28, 2025, used a net cash of ¥150.2 billion, compared to ¥131.4 billion for the same period last year[30] - The company’s cash flow statement indicates a healthy cash flow position, supporting ongoing operations and potential investments in new technologies[42] Future Outlook - The company plans to enhance its global brand presence and diversify revenue streams, particularly focusing on the overseas UNIQLO business segment[13] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[41] - The company plans to continue expanding its market presence in Greater China and Southeast Asia, focusing on enhancing brand visibility and customer engagement[57] - The company is actively investing in new product development and technology to drive future growth and improve operational efficiency[57]