Uniqlo: Gen Z’s viral fashion trends help profit rocket
Viral fashion trends among Generation Z helped Uniqlo’s profit surge by more than €100m (£83.5m) during its latest financial year.
The London-headquartered European division of the Japanese giant has reported a turnover of €1.69bn for the 12 months to 31 August, 2024, up from the €1.30bn it achieved in the prior period.
New accounts filed with Companies House also show its pre-tax profit jumped from €186.5m to €291m over the same time.
As well as the UK, Uniqlo operates stores in France, Germany, Belgium, Spain, Sweden, The Netherlands, Italy, Denmark, Poland and Luxembourg.
In the year Uniqlo opened seven new stores, including its first in Luxembourg while its headcount rose from 4,604 to 5,521.
Since the end of its financial year, the company has opened six new stores.
European expansion fuels Uniqlo’s growth
A statement signed off by the board said: “The results for the year show continued growth of the business in Europe remaining strong and the business is confident of future performance.”
Uniqlo added: “Turnover has continued to increase and year on year has grown by 30 per cent.
“With this, the gross profit margin has been maintained at a fairly stable level with positive growth of €268m.
“This increase is mainly due to the European customers continuing to embrace the Uniqlo LifeWear products that reflect the Japanese values of simplicity, quality and longevity.
“Further, the first Uniqlo store in Luxembourg was opened in October 2023 and a re-opened flagship store in Opera, Paris, contributed to the increase for this year.
“There have also been a significant increase among the younger customer base who have embraced items like the mini-round shoulder bag, bra-top and pleated trousers that went viral during the summer.”
The results come after Uniqlo’s finances were also boosted in its prior financial year thanks to one of its products going viral on TikTok.