Uniqlo India’s net profit jumps to 25% in FY24 despite slow sales growth
10 August 2024, Mumbai
Japanese apparel giant Uniqlo India’s net profit grew by 25 per cent to 85.1 crore during FY’24 despite its sales growth slowing to 32 per cent, as against the 69 per cent growth it enjoyed the previous year. The company’s net revenues for the latest fiscal year stood at Rs 824 crore, according to its recent filing with the Registrar of Companies (RoC).
Uniqlo, which entered the Indian market in September 2019, initially faced delays in its expansion plans due to the COVID-19 pandemic. The brand currently operates about 13 stores in the country. The slower sales growth in FY24 mirrors a broader trend across the retail sector in India, where growth in segments like apparel, footwear, and quick service restaurants (QSR) has decelerated. According to the Retailers Association of India (RAI), the overall retail sales growth rate remained in the 4-7 per cent range last year, with May and June of this year showing only modest increases of 3 per cent and 5 per cent, respectively.
As reflected in the financial performance of all brands, Indian or international, the market for the industry remained sluggish last year, says Devangshu Dutta, CEO, Third Eyesight. However, any brand that views India as a strategic market for its future growth will weather these ups and downs, he adds.
Known for its functional basics like T-shirts, jeans, and woolen wear, rather than fast-fashion trends, Uniqlo sees India as a key market. As one of the world’s most populous countries, India represents a significant opportunity for apparel brands, particularly as younger consumers increasingly embrace Western-style clothing. Uniqlo emphasises, Indian consumers are shifting from fast fashion to long-lasting essentials and functional wear, making the country one of its top priority markets globally.
