Fast Retailing Reports Fourth Straight Year of Record Profit

Japan’s Fast Retailing Co. Ltd., the parent company of global apparel giant Uniqlo, has posted its fourth consecutive year of record operating profit, underlining the strength of its global expansion strategy even as U.S. tariffs and slowing demand in China weigh on the business.

The company reported an operating profit of ¥564.3 billion (US $3.69 billion) for the year through August, a 13 percent rise from the previous year and higher than both its internal forecast and analyst expectations, according to data from LSEG. The result exceeded Fast Retailing’s projection of ¥545 billion and the market consensus of ¥546 billion.

Strong results from Uniqlo’s North American and European markets helped offset weakness in China, its largest overseas region. Fast Retailing said its North American revenue surged 24.5 percent year-on-year, while profit rose more than 35 percent, driven by solid store performance and growing brand recognition.

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By contrast, the Greater China region, home to roughly 900 Uniqlo outlets, experienced weaker sales amid sluggish consumer sentiment and an uncertain economic outlook. Analysts said the company’s ongoing diversification toward Western markets reflects a longer-term strategy to reduce dependence on China.

Fast Retailing, also the owner of brands such as GU and Theory, has warned that U.S. tariffs on imports from Asia could impact its profitability in the coming quarters. The company trimmed its second-half profit outlook earlier this year, citing the potential tariff impact on garments made in Vietnam and Bangladesh that are shipped to the U.S. market.

Despite these challenges, the retailer expects momentum to continue. For the fiscal year ending August 2026, Fast Retailing forecasts an operating profit of around ¥610 billion (US $4 billion), signaling confidence in its diversified supply chain and global retail network.

Founder and CEO Tadashi Yanai said the company is capable of shifting production among different Asian and African countries to reduce tariff exposure. “Our strength lies in adaptability — from manufacturing to store operation,” he noted.

Fast Retailing plans to expand its Uniqlo brand footprint with new flagship stores in Frankfurt, Warsaw, Chicago, and San Francisco in 2026, part of its ongoing push to solidify Uniqlo’s position as a global everyday wear brand. The company also benefited from a weak yen, which amplified overseas profits when converted back into Japanese currency.

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Following the announcement, Fast Retailing’s shares rose sharply, helping lift the Nikkei index, even as the broader Tokyo market saw profit-taking.

Industry analysts said Fast Retailing’s continued success highlights its efficient supply chain, focus on essential apparel, and ability to navigate trade and currency headwinds better than most competitors. However, maintaining this momentum will depend on how effectively it mitigates external risks — from currency volatility to geopolitical pressures — as it aims for a fifth straight year of record profit.