Uniqlo owner raises forecast for third year running

Uniqlo owner Fast Retailing has raised its forecast for the third consecutive year of record profits, buoyed by strong sales both in its domestic market and key international regions

However, the Japanese fashion retailer warned it continues to face challenges in its largest overseas market, China.

In the six months to February 2025, Fast Retailing posted a 12.0% increase in consolidated revenue, reaching JPY 1.79 trillion (£12.28bn), with a 18.3% rise in operating profit to JPY 304.22bn (£2.02bn).

These positive results were largely driven by strong performances in Japan, North America, Europe, and Southeast Asia.

The group‘s Uniqlo brand saw its international operations thrive, with particularly strong results in Europe, North America, and Southeast Asia, India & Australia. Uniqlo’s Japan division also reported notable growth, seeing a rise in revenue and profit by 11.6% and 26.4%, respectively, for the period.

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Despite these positive figures, China’s performance has been less robust.

After facing significant challenges in adapting to the region’s market demands, Uniqlo has struggled to capture the same growth in its Greater China segment. The company identified the failure to adapt its product mix for the warmer winter climate in China as a contributing factor.

The retailer’s gross profit margin increased to 53.3% in the first half of fiscal 2025, a positive development, while selling, general, and administrative expenses improved to 36.5%. Net profit attributable to the parent company’s shareholders surged by 19.2% to JPY 233.57bn (£1.55bn).

In terms of global store openings, Fast Retailing continues to focus on expanding its footprint, particularly in regions outside of China. The company remains optimistic about the potential for growth in North America and Europe, with plans to open additional stores and further enhance its digital strategy.

Fast Retailing CEO Tadashi Yanai has previously expressed confidence in the long-term viability of the company, despite the headwinds facing the retail sector. With the global retail environment becoming increasingly competitive, particularly due to trade tensions and shifting consumer preferences, the company is adjusting its strategy to ensure future growth.

Looking ahead, Fast Retailing has not revised its full-year forecast, maintaining its projections for an 9.5% year-on-year sales increase, expecting total sales of JPY 3.4 trillion (£22.8bn). The company anticipates a 5.8% rise in operating profit for the full year, projecting total operating profit to reach JPY 530bn (£3.56bn).

Last month, the business revealed plans to expand its UK Uniqlo store portfolio with the launch of new stores in Glasgow, Birmingham, and Liverpool in 2025.

The Japanese fashion giant confirmed its highly anticipated Liverpool store will open on 24 April, with the Glasgow and Birmingham stores slated for autumn.

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