The company reported a 17% rise in annual revenue to a record 3.96 trillion yen (US$25 billion). The milestone highlights Fast Retailing’s rise among global high-street fashion retailers, according to Bloomberg.
Its sales are poised to exceed those of Hennes & Mauritz AB, which analysts expect to report revenue of 222.7 billion kronor ($22.3 billion) for its fiscal year ending in November.
The results illustrate Uniqlo’s evolution from a low-cost Japanese casualwear chain into an international brand centered on functional clothing for all seasons, as it expands further into North America and Europe.
Still, Fast Retailing founder and CEO Tadashi Yanai, the second-richest man in Japan, must more than double annual sales to meet his long-term target and create the global apparel powerhouse he has long envisioned.
“Our milestone of achieving 10 trillion yen in sales is now coming into view,” Yanai said at a news conference in Tokyo. “The goal of becoming global No. 1 has been clear since our founding.”
Fast Retailing forecast operating profit of 830 billion yen for the fiscal year ending in August 2027, according to a statement released Thursday, Oct. 8. The projection matched analysts’ average estimate, as did its revenue forecast of 4.45 trillion yen.
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A man walks out after shopping at the newly launched Japanese retail store UNIQLO at Orion Mall in Bengaluru, August 29, 2025. Photo by AFP |
Uniqlo’s decision to resist fast fashion’s focus on rapidly shifting trends has helped it establish a brand centered on functional, high-quality everyday clothing, making its business increasingly hard to replicate, according to Takahiro Kazahaya, an analyst at UBS AG Tokyo.
Asked about competing with Zara’s parent, Yanai said: “Inditex has its own unique characteristics. We have our own characteristics, and we both play to our respective strengths.”
“We want to develop our brands so that when people think, ‘I wonder if there is something like this out there,’ Uniqlo is the very first thing that comes to mind,” Yanai said. “Up until now, we have done this primarily in Japan, but I believe the time has come to expand this globally.”
Uniqlo’s same-store sales in Japan increased 5.1% over the year, supported by demand for functional products such as Ultra Stretch Pants and UV Protection items, alongside trend-driven offerings including barrel pants.
Overseas operations remained the main source of growth. Uniqlo’s international business posted record revenue of 2.41 trillion yen, up 26%, and profit of 440 billion yen, up 44%. Combined sales in North America and Europe surpassed those in mainland China for the first time, according to Reuters.
Over the past year, Fast Retailing has opened and upgraded U.S. stores, including a second Fifth Avenue location in New York and a Chicago flagship. It has also worked to raise brand awareness through initiatives including a partnership with Major League Baseball.
Yanai also outlined his ambitions for expansion everywhere on Thursday.
“We are embarking on a major challenge aimed at our next phase of growth,” he said. “One of the key stages that will drive this next growth is Southeeast Asia, Australia and India.”