Uniqlo parent Fast Retailing raises its forecast again and sets its sights on the US

Tokyo - Japanese ready-to-wear giant Fast Retailing (Uniqlo) on Thursday again raised its forecast for its 2025/26 fiscal year. This follows robust first-half profits. The company intends to accelerate its international expansion, particularly in the US, where it is partnering with the leading baseball team, the Dodgers.

The Japanese apparel champion had its fourth consecutive year of record profits in its 2024/25 fiscal year, which ended in late August. It has significantly accelerated its expansion outside the archipelago since the slow period of the Covid-19 pandemic.

It now forecasts an operating profit of 700 billion yen (4.40 billion dollars) for the 2025/26 fiscal year, which began in September, up from 650 billion previously. A net profit of 480 billion yen is also expected, up from the previous forecast of 450 billion.

Sales are expected to soar by some 14.7 percent for the fiscal year to reach 3.9 trillion yen, a forecast that has also been raised.

This improvement reflects strong results for the September-February period, boosted by “robust sales for Uniqlo in all regions, with the brand achieving record half-year results and ever-growing international support”.

For the first half of the year, the Japanese group's turnover soared by almost 15 percent year-over-year to 2.055 trillion yen. Net profit reached 279.2 billion yen, an increase of almost 20 percent.

Sales for Uniqlo, its flagship brand, recovered in Japan (+7.4 percent). They also soared by 22.4 percent internationally, generating an increase in operating profit of almost 40 percent year-over-year.

The turnaround is confirmed in China, its largest market outside Japan. While its sales and profits had plummeted there in the last financial year, Uniqlo International now reports a rebound in turnover for the first half. It also saw “double-digit” profit growth in mainland China, where it benefited from the Lunar New Year sales.

Meanwhile, Uniqlo is posting “double-digit” growth in sales and profits for the first half in both North America and Europe, stating that it sold its winter ranges well there.

The North American market is its most coveted prize. Fast Retailing has just signed a major agreement with the Los Angeles Dodgers, the champion team of the National Baseball League, whose ranks include star Japanese player Shohei Ohtani.

Uniqlo's red and white logo will be visible in the stadium. This is a way of capitalising on the passion of Japanese and American baseball fans, offering Uniqlo exceptional visibility.

According to Bloomberg, Fast Retailing generates less than 10 percent of its turnover in the US and has only 3 percent of its points-of-sale there, heralding significant growth potential.

This article was translated to English using an AI tool.

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