Uniqlo owner raises profit outlook after strong first quarter

Fast Retailing, the owner of Uniqlo, has raised its full-year profit and revenue forecasts after reporting record first-quarter results, driven by strong performance across its core Uniqlo business in Japan and overseas.

In the three months to the end of November, consolidated revenue rose 14.8% year on year to ¥1.03trn (£4.84bn), while business profit increased 31.0% to ¥205.6bn (£970m). Profit attributable to owners of the parent rose 11.7% to ¥147.4bn(£690m).

The group said Uniqlo delivered revenue and profit growth in all regions, supported by strong product demand, improved seasonal stock management and continued investment in high-quality store openings.

At Uniqlo Japan, revenue increased 12.2% to ¥299.0bn (£1.4bn) and business profit rose 20.2% to ¥62.4bn (£293m). Same-store sales grew 11.0%, with demand boosted by strong sales of autumn products and year-round ranges, as well as winter items such as HEATTECH once colder weather set in.

The company said gross margins in Japan were slightly lower due to higher procurement costs linked to weaker yen forward exchange rates, although this was partly offset by lower personnel and rent costs as a proportion of sales.

Additionally, Uniqlo International reported revenue growth of 20.3% to ¥603.8bn (£2.8bn), with business profit up 38.0% to ¥117.3bn (£550m). Fast Retailing said the performance reflected successful product development, targeted marketing and continued expansion of its store network.

Double-digit revenue and profit growth was recorded across Greater China, South Korea, Southeast Asia, India, Australia, Europe and North America. 

In Europe, the company highlighted strong demand following new store openings in cities including Glasgow, Birmingham, Frankfurt and Munich.

The Global Brands division reported lower revenue and profit, with sales down 7.6% to ¥33.0bn (£155m) and business profit falling 14.8% to ¥1.7bn (£8m). Performance was affected by weaker trading at Theory in the US, partially offset by growth at PLST and lower losses at Comptoir des Cotonniers and Princesse tam.tam following store closures.

On the back of the first-quarter performance, Fast Retailing raised its full-year guidance for the year ending August 2026. It now expects consolidated revenue of ¥3.8trn (£17.9bn), up 11.7%, and operating profit of ¥650.0bn (£3.1bn), up 15.2%. Profit attributable to owners of the parent is forecast to rise 3.9% to ¥450.0bn (£2.1bn).

Fast Retailing said it would continue to focus on product development, brand communication and disciplined cost control as it expands Uniqlo’s global footprint.