Uniqlo owner predicts 5th year of record profit on U.S., Europe growth

TOKYO >> The Japanese owner of global clothing brand Uniqlo on Thursday reported a record high profit for the year finished August, and forecast a fifth-straight year of record profit in fiscal 2026 on its aggressive expansion in North America and Europe.

Fast Retailing stated operating profit jumped about 13% to 564.3 billion yen ($3.69 billion) in the 12 months finished August 31 from the year before, beating expectations.

The retailer, known for its fleece jackets and inexpensive basics, reported strong domestic sales and robust results in the United States that compensated for higher tariffs.

Revenue in Japan was boosted by buoyant sales to tourists, while the international segment posted record performance, with North America revenue and business profit growing 24.5% and 35.1%, respectively, for the fiscal year finished August 2025.

But its Greater China market continued to struggle, with declines in sales and profits as consumer appetite stayed subdued amid a sluggish economy and weak consumer confidence.

The casual wear giant stated operating profit beat its own forecast of 545 billion yen and an average estimate of 546 billion yen from 16 analysts polled by LSEG.

Fast Retailing forecast operating profit in the year to August 2026 would rise to another record of 610 billion yen.

From one store in Hiroshima in western Japan, 41 years ago, Uniqlo has grown to more than 2,500 locations across the world, selling clothing built primarily in China and other Asian manufacturing hubs.

When its operations in China suffered during strict COVID-19 curbs, Fast Retailing increased its focus on markets in North America and Europe.

Now, with China’s economy cooling, it has doubled down on that strategy, viewing to North America and Europe for growth.

China remains the retailer’s hugegest overseas consumer market with some 900 Uniqlo stores on the mainland.

“The global economy is now in a critical state, with many companies pessimistic about the future and increasingly reluctant to build proactive investments,” founder and chief executive Tadashi Yanai stated at a briefing.

“It is precisely during such times of stagnation that chances arise to create something new.”

Fast Retailing surpassed 1 trillion yen in sales in Japan for the first time in the just-finished year. It now aims to hit that sales mark in both the U.S. and Europe “in the near future,” though doing so would be multiples of current revenue levels.

The company stated it plans to open flagship stores in locations such as Frankfurt, Warsaw, Chicago, and San Francisco in fiscal 2026.

But its global strategy has been complicated by tariffs imposed by the administration of President Donald Trump.

Fast Retailing warned in July that the tariffs would start to have a significant impact on its operations in the market later in the year. Even so, price increases and cost-cutting supported the company increase U.S. sales and profit for the year.

Tokyo and Washington later inked a deal to set a 15% tariff on most Japanese imports, less than the 25% initially imposed.

It is uncertain how that affects Uniqlo goods sold in the United States, which are primarily produced in South and Southeast Asia.

Yanai repeated his criticism of the U.S. tariff regime. “Imposing tariffs is a type of confrontation,” he stated. “If mishandled, it could potentially lead to war.”

Fast Retailing tfinishs to benefit both at home and abroad from a weak yen, which is now trading at its lowest since February against the dollar and a record low versus the euro.

A tourism boom in Japan has led to a surge in duty-free shopping at domestic stores, while revenue from Western markets obtains an added boost when translated back into yen.

Yanai, Japan’s richest man, has long aimed to build his firm the world’s hugegest fashion retailer, with Zara owner Inditex and H&M standing in the way.

In recent years, the company has faced fierce price competition from Chinese online retailers Shein and Temu.

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