Japan’s Fast Retailing has posted record first 9M of FY26 results, with revenue rising 17.1 per cent to ¥3.0651 trillion (~$18.97 billion) and business profit up 33.6 per cent to ¥592.7 billion (~$3.67 billion).
Growth was driven by UNIQLO International, while UNIQLO Japan and GU also improved.
Strong global demand prompted the company to raise its FY26 earnings forecast.
In the third quarter (Q3) from March to May, UNIQLO operations across all regions achieved higher revenue and profit. This strong overall performance was driven by ongoing global communications and branding efforts through products and new store openings, the company said in a press statement.
The strong performance was led by higher revenue and profit across all UNIQLO operations worldwide, supported by continued branding initiatives, product innovation and new store openings.
UNIQLO International drives growth
UNIQLO International remained the group’s biggest growth engine, with nine-month revenue rising 25.9 per cent to ¥1.834 trillion (~$11.37 billion) and business profit increasing 45.4 per cent to ¥345.3 billion.
During the March-May quarter, revenue jumped 33.8 per cent to ¥592.6 billion, while business profit surged 65.2 per cent to ¥112.3 billion, with the business profit margin improving by 3.6 percentage points.
The China business delivered higher revenue and double-digit profit growth, while South Korea, Southeast Asia, India, Australia, North America and Europe all reported double-digit increases in both revenue and profit. Fast Retailing said the performance was supported by strong demand for seasonal products, effective marketing campaigns and continued expansion of flagship and large-format stores.
The company opened six stores in North America during the quarter, including a flagship outlet in Chicago, alongside major stores in New York and Boston. It also expanded its footprint in Europe with new stores in Bristol and Utrecht and opened a global flagship store in Seoul’s Myeongdong district.
UNIQLO Japan and GU report higher profits
UNIQLO Japan posted revenue of ¥867.6 billion (~$5.38 billion) for the first nine months, up 8.3 per cent, while business profit increased 15.1 per cent to ¥172.9 billion.
Q3 revenue rose 10 per cent to ¥285.9 billion, supported by a 9.9 per cent increase in same-store sales driven by strong demand for bottoms, UV Protection Parkas and Easy Pants. Business profit grew 18.3 per cent to ¥62.2 billion.
Value fashion chain GU also delivered improved results. Nine-month revenue increased 3.7 per cent to ¥265.6 billion, while business profit rose 28 per cent to ¥32.1 billion. In the third quarter, revenue climbed 7.5 per cent to ¥97.1 billion and business profit jumped 36.7 per cent to ¥16.3 billion, supported by strong sales of trend-led products and improved operational efficiency.
Global brands remain mixed
Fast Retailing’s Global brands segment reported mixed results. Q3 revenue increased 2.5 per cent to ¥33.6 billion, while business profit rose 48.3 per cent to ¥2.6 billion. However, in local currency terms, revenue declined by around 4 per cent, mainly due to weaker performance at Theory.
For the first nine months, segment revenue declined 4.2 per cent to ¥96.3 billion, while business profit fell 33.4 per cent to ¥1.9 billion. The company said structural reforms at Theory and continued rationalisation of the Comptoir des Cotonniers and Princesse tam.tam store network weighed on performance.
Company raises FY26 forecast
Reflecting stronger-than-expected performance, Fast Retailing revised its fiscal 2026 outlook upwards. The company now expects full-year consolidated revenue of ¥3.97 trillion (~$24.61 billion), up 16.7 per cent year on year, business profit of ¥710 billion (+28.8 per cent), operating profit of ¥730 billion, up 29.4 per cent and net profit attributable to owners of the parent of ¥500 billion (+15.5 per cent).
Compared with its April forecast, the company increased revenue guidance by ¥70 billion, business profit by ¥20 billion, operating profit by ¥30 billion and net profit by ¥20 billion, citing stronger performance through June and revised foreign exchange assumptions.
Fibre2Fashion News Desk (SG)
