The Japanese clothing group Fast Retailing raised its forecast for the 2025/26 financial year again on Thursday. This came after robust gains in the first half of the year. The company wants to accelerate its international expansion, particularly in the United States, where it is partnering with baseball’s premier baseball team, the Dodgers.
The Japanese clothing giant recorded its fourth consecutive year of record profits in its 2024/25 financial year, which ended at the end of August. Since the lull during the Covid-19 pandemic, the company has greatly accelerated its expansion outside the archipelago.
For the 2025/26 financial year that began in September, the company now forecasts an operating profit of 700 billion yen (3.78 billion euros), compared to 650 billion previously. Net profit is expected to reach 480 billion yen, compared to the previous forecast of 450 billion.
Sales are expected to increase by around 14.7 percent to 3,900 billion yen (21.05 billion euros) in the financial year. This forecast has also been raised.
This positive development is due to solid results in the period from September to February. They were driven by “robust Uniqlo sales across all regions.” The brand achieved record results for the first half of the year and is steadily gaining popularity internationally.
In the entire first half of the year, the Japanese group’s sales rose by almost 15 percent year-on-year to 2,055 billion yen (11.09 billion euros). Net profit was 279.2 billion yen (1.5 billion euros), an increase of almost 20 percent.
Sales of Uniqlo, the group’s main brand, recovered in Japan (+7.4 percent). Internationally they even rose by 22.4 percent. This resulted in an increase in operating profit of almost 40 percent year-on-year.
The trend reversal in China, the most important market outside of Japan, is confirmed. While sales and profits there declined in the last financial year, Uniqlo International is now reporting a recovery in sales for the first half of the year. The company also reported “double-digit” profit growth in mainland China. There it benefited from Chinese New Year sales.
At the same time, Uniqlo recorded “double-digit” sales and profit growth in North America and Europe in the first half of the year. The company claims to have sold its winter collections well there.
The North American market is particularly in focus: Fast Retailing recently reached an important agreement with the Los Angeles Dodgers. The team is champion of the National League in baseball and has Japanese star player Shohei Ohtani in its ranks.
Uniqlo’s red and white logo will be visible in the stadium. In this way, the company aims to capitalize on the passion of Japanese and American baseball fans and secure exceptional visibility.
According to Bloomberg, Fast Retailing generates less than 10 percent of its sales in the United States and operates only 3 percent of its stores there. This indicates significant growth potential.
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