Japan’s Fast Retailing, the operator of the Uniqlo clothing brand, reported a sharp rise in quarterly operating profit and raised its full-year outlook, citing robust global sales growth that helped offset the impact of higher US tariffs.
The company said operating profit rose by 34% to US $ 1.3 billion in the September–November quarter, exceeding an LSEG consensus estimate of US $ 1.12 billion. Revenue increased 15% over the period. Fast Retailing is now on track to post its fifth consecutive year of profit growth.
The retailer attributed the strong performance to a recovery in sales in China, its largest overseas market, alongside aggressive expansion in North America and Europe. During the quarter, it opened major stores in Antwerp, Birmingham and Munich, and said it plans to launch a series of new flagship stores in Chicago, New York and Boston.
Chief Financial Officer Takeshi Okazaki said at a press briefing that the company had absorbed the impact of additional US tariffs during the first quarter and still exceeded its own expectations for business profit margins.
Profit from Fast Retailing’s domestic Japanese business rose 20.6% year on year, supported by strong demand for sweatshirts and warm innerwear. Overseas operations also delivered solid growth, with many markets posting double-digit increases in both revenue and profit. The international segment recorded profit growth of 41.6%, helped by strong autumn sales in China and the launch of a collaborative venture with e-commerce group JD.com, which attracted new customers.
For the full financial year, Fast Retailing raised its operating profit forecast to US $ 4.13 billion from US $ 3.87 billion previously.
The company has been seeking to reduce its reliance on China following disruptions caused by strict COVID-19 restrictions, increasingly positioning North America and Europe as its key growth markets. However, it said it still expects further revenue and profit growth in China for the remainder of the financial year ending August 2026, despite ongoing diplomatic tensions between Japan and China.
Responding to questions on the potential impact of recent political developments, Okazaki said there could be some effect, but it was difficult to quantify. He added that the company had not seen any discernible impact from a decline in Chinese inbound tourists.
