Fast Retailing’s GU and Theory brands have witnessed impressive sales growth in fiscal year 2023, driven by strategic approaches and product offerings that resonate with evolving fashion trends.
GU, a popular youth-focused brand, reported remarkable results, with a 20% increase in revenue, reaching ¥295.2 billion (€1.8bn/£1.6bn/$1.9bn), and a remarkable 56.8% surge in operating profit, totaling ¥26.1 billion. GU’s success can be attributed to its agile product strategy that aligns with prevailing fashion trends, including popular items like heavyweight sweat-wear, super-wide cargo pants, and pull-on pants. Furthermore, GU achieved enhanced operational efficiency, leading to a notable 2.1-point improvement in the operating profit margin.
In the Global Brands segment, there was a notable 15% growth in revenue, totaling ¥141.6 billion. It marked a significant turnaround, transitioning from a business loss of ¥0.2 billion in fiscal 2022 to a substantial profit of ¥0.5 billion in 2023. Nevertheless, the operating loss widened to ¥3 billion, primarily due to expenses associated with store closures and structural reforms at the Comptoir des Cotonniers label.
Theory, on the other hand, delivered remarkable results. The brand experienced substantial increases in both revenue and profit, primarily fueled by outstanding performance in the Asian and Japanese markets. Products such as jackets, pants, dresses, and other ‘going-out’ attire witnessed significant sales growth, following a concerted effort to emphasize the value of the brand’s core offerings.
Within the Fast Retailing portfolio, the PLST label achieved higher revenue and reduced its operating loss. However, Comptoir des Cotonniers faced a decline in revenue and an expanded operating loss.
These results underscore the diverse performance within Fast Retailing’s brand portfolio, showcasing adaptability and growth in an ever-changing fashion landscape.