TOKYO - Fast Retailing Co., the operator of the Uniqlo clothing chain, appears on course to overtake Sweden's H&M Hennes & Mauritz AB as the world's second-largest apparel manufacturer and retailer after posting another year of robust global sales.
Fast Retailing's sales during the just-ended business year through August came to 3.96 trillion yen ($25 billion), up 16.6 percent from the previous year, while net profit surged 25.3 percent to a record 542.52 billion yen.
H&M, the current No. 2, has yet to release its full-year earnings results through November. But the Swedish apparel company, which reported sales of 228.29 billion krona ($22.8 billion) in fiscal 2025, has reported sales below year-ago levels through the third quarter of the current year. Inditex SA, the operator of the Zara clothing brand, ranks first.
"Achieving 10 trillion yen in sales, which we have set as a major milestone, is now within our sights," said Tadashi Yanai, the company's chairman, president and chief executive officer.
"Now that we have reached the starting line in the global market, we are taking on a major challenge aimed for the next growth," he added, reiterating the company's commitment to becoming the world's leading brand.
For the business year through next August, the company is aiming for another record-high net profit of 560 billion yen, up 3.2 percent.
Operating profit, which totaled 743.13 billion yen in the year to August, is projected to grow 11.7 percent to 830 billion yen on sales of 4.45 trillion yen, up 12.3 percent.
Fast Retailing offers a variety of products through Uniqlo, including "HeatTech" warm innerwear and the quick-drying "Airism" line. The company, which is also known for its GU brand, is headquartered in the western Japanese prefecture of Yamaguchi.
The annual number of customers at Uniqlo increased by about 10 percent from the previous year to more than 600 million in the 12 months to August, largely driven by its overseas operations.
Operating profit from Uniqlo's overseas operations surged 44.9 percent to 448.1 billion yen as sales rose across all regions, supported by stronger sales of year-round products, an expanding customer base and new flagship stores.
Domestic operations, meanwhile, saw a 6.6 percent increase in operating profit to 196.6 billion yen, supported by strong sales of products reflecting current fashion trends and meeting customers' functional needs.
Sales from Uniqlo's overseas operations gained 26.2 percent to 2.41 trillion yen, while those from domestic operations stood at 1.08 trillion yen, up 5.7 percent.
By region, sales in Europe and North America jumped 38.7 percent to 512.6 billion yen and 34.6 percent to 364.9 billion yen, respectively.
Greater China saw an 11.3 percent increase in sales to 724.0 billion yen, while total sales in South Korea, Southeast Asia, India and Australia grew 30.7 percent to 809.4 billion yen.
However, Fast Retailing's overall sales came in slightly below the 3.97 trillion yen forecast announced in July, as warmer-than-usual weather in Europe from June to August dampened demand for fall and winter products, the company said.
