Uniqlo Owner Seen Posting 24% Annual Profit Surge on Brand’s Overseas Push

Fast Retailing's Uniqlo sign boards are displayed at a casual clothing store in Tokyo, Japan January 11, 2023. (Reuters)
Fast Retailing's Uniqlo sign boards are displayed at a casual clothing store in Tokyo, Japan January 11, 2023. (Reuters)
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Uniqlo Owner Seen Posting 24% Annual Profit Surge on Brand’s Overseas Push

Fast Retailing's Uniqlo sign boards are displayed at a casual clothing store in Tokyo, Japan January 11, 2023. (Reuters)
Fast Retailing's Uniqlo sign boards are displayed at a casual clothing store in Tokyo, Japan January 11, 2023. (Reuters)

The Japanese owner of casual wear giant Uniqlo is projected to beat its own forecast in what would be a third straight year of record profits as its brand makes inroads in western markets and its business in China recovers.

Fast Retailing's operating profit in the 12 months through August likely rose 24% from a year earlier to 478.3 billion yen, based on the average of 15 analyst estimates compiled by LSEG ahead of the company's earnings on Thursday.

That's marginally higher than the company's 475 billion yen forecast, which it lifted in July citing a strong performance in the second half.

Fast Retailing's shares have been on a tear, reaching a record high this week. Key factors going forward will be sales of fall and winter items in Japan and whether the company can reinvigorate its business in China, according to independent analyst Mark Chadwick.

"Investor attention will turn to whether Fast Retailing's measures in Greater China successfully reverse the earnings decline caused by weak consumer sentiment and increased competition," Chadwick wrote on the Smartkarma platform.

With more than 900 stores in China, Fast Retailing has long been seen as a bellwether for the retail sector in the world's second-biggest economy. COVID restrictions weighed on results there for years, but now the challenge is a sluggish economy that has weighed on consumer confidence.

Greater China CEO Pan Ning acknowledged in July that the market is maturing, with the company scaling back store openings and adopting a scrap and build strategy for underperforming locations.

When COVID lockdowns depressed sales in China, the company focused more on expansions in North America and Europe. Both sectors delivered strong sales and profits through the first nine months of fiscal 2024.

Company founder Tadashi Yanai aims to make Fast Retailing the world's biggest fashion retailer, with the operators of Zara and H&M standing in the way. He believes consumers are more focused on value than luxury in a post-COVID world, a trend that works in Uniqlo's favor.

Yanai, Japan's richest man, is scheduled to speak at the company's earnings briefing on Thursday, as well as Uniqlo president Daisuke Tsukagoshi, whom Yanai has spoken of as a possible successor.

Fast Retailing's shares have climbed 43% so far in 2024, outperforming a 16% advance in the benchmark Nikkei index.



Notre Dame Cathedral’s Reopening Spectacle Capped a Stellar Year for Luxury House LVMH

CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
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Notre Dame Cathedral’s Reopening Spectacle Capped a Stellar Year for Luxury House LVMH

CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)

The reopening of Notre Dame was a solemn celebration of cultural and spiritual renewal. Yet for some, the historic cathedral's revival also felt like a meticulously choreographed branding event from LVMH and other luxury conglomerates.

Bernard Arnault, the lowkey billionaire behind luxury powerhouse LVMH and a key Notre Dame donor who regularly tops the list of the world’s richest men, was at the center of the celebration. He was surrounded by his family, the French president, the archbishop and clergy, and the unmistakable symbols of his luxury empire’s influence, including its brands Louis Vuitton and Dior.

First lady Brigitte Macron held a conspicuous Lady Dior handbag. Louis Vuitton artistic director Pharrell Williams performed kitted out in Louis Vuitton. South African soprano Pretty Yende also contributed with a rendition of “Amazing Grace” while wearing a Dior gown adorned with 110 carats of diamonds.

Welcome to the “inauguration of the LVMH arena,” commented television journalist Yann Barthès about the cathedral ceremony this week.

LVMH has enjoyed unprecedented visibility in France in 2024, especially as a high-profile sponsor of the Paris 2024 Olympics.

Some questioned the taste of such brand prominence occurring in a sacred space like the beloved Gothic monument, while noting LVMH's crucial contribution to the reconstruction.

“You can’t blame monsieur Arnault, a businessman, to do business. But people are now asking if it was an appropriate venue for a display like that,” said fashion PR consultant Theo Fontaine.

“It’s been a great PR year for LVMH—that’s for sure,” Fontaine added. “The Olympics and now Notre Dame. The whole world has been watching.”

Not far behind Arnault sat representatives of Kering, adding another layer to the ongoing rivalry between France’s two largest luxury conglomerates.

Kering CEO François-Henri Pinault attended alongside his wife, actress Salma Hayek, who wore a tailored Gucci coat. Gucci is Kering-owned.

The event, marking the culmination of an 840-million-euro restoration effort following a devastating 2019 fire, brought together global dignitaries and cultural icons.

The Notre Dame restoration united France’s corporate giants. Arnault’s 200-million-euro donation was the largest, followed by 100-million-euro contributions from Pinault and the Bettencourt-Meyers family of L’Oréal. Over 250 companies and 2,000 craftspeople contributed to the five-year restoration effort, which reconstructed the spire, repaired vaulted ceilings and restored stained-glass windows.

As the bells of Notre Dame rang out across Paris, the cathedral’s rebirth stood as a testament to collective effort — but also for some as a symbol of how France’s seats of power and its prized luxury industry are inextricably intertwined.

French President Emmanuel Macron and Brigitte Macron welcomed heads of state, including President-elect Donald Trump, Britain’s Prince William and Elon Musk, to a ceremony steeped in tradition — and high fashion.

Arnault attended with his family, including Dior chair and CEO Delphine Arnault, LVMH image and environment director Antoine Arnault, Moët Hennessy deputy CEO Alexandre Arnault, LVMH Watches CEO Frédéric Arnault, and Louis Vuitton product and development director for watches Jean Arnault. Antoine Arnault’s wife, model Natalia Vodianova, was also in attendance.

“I am proud of the outpouring of generosity from all over the world, to which the LVMH Group and my family wanted to contribute from the very beginning, which has enabled the restoration of this jewel of our heritage,” Antoine Arnault said in a statement posted to LinkedIn.

“This extraordinary project highlighted the excellence of French know-how and the talent of nearly 2,000 architects, workers and craftsmen of all trades,” he added.

Yet, public reaction was mixed

Papuna Biliseishvili, 24, who watched the ceremony in Paris, quipped, “If the devil wears Prada, the cathedral wears Louis Vuitton and Dior.”

Cari Lefebvre, 27, said “this is the most PR the Catholic Church has seen in centuries.”

Marie-Claire Dubois, a 45-year-old Catholic worshiper from Paris, expressed her disapproval. “This is a sacred place. It is beautiful that these companies contributed, but the branding should have remained outside.”

While the grandeur of the reopening sparked debate, Arnault’s donation and LVMH’s contributions to the cathedral restoration—including 36 300-year-old oak trees for the spire—have been widely praised.

LVMH’s influence at the Paris 2024 Olympics further cemented its stellar year. The company crafted custom display cases for 5,000 medals and the Olympic torch, showcasing its artistry and precision. Berluti, another LVMH brand, designed costumes for the opening ceremony, while an Olympic-themed Vogue World fashion show, supported by the group, drew international attention during Paris Couture Week.

Tensions between Arnault and Pinault, the driving forces behind LVMH and Kering respectively, were on full display with their brands’ prominent appearances at the cathedral. This rivalry dates back decades to a bitter bidding war over Gucci in the late 1990s, which Pinault’s Kering ultimately won. Since then, their competition has extended beyond fashion into the realms of art, philanthropy and global influence.

In Notre Dame, French luxury was also championed by the French Catholic church — and was on display even in the stitch of the liturgical vestments. French fashion designer Jean-Charles de Castelbajac was called on by the church to design the cathedral’s 2,000 garments. The unorthodox designs were fun, modern — and perhaps shockingly minimalist. They ensured that even the clergy’s robes reflected high-fashion artistry, further underscoring the intersection of faith and fashion at the event.