Delivering a commanding start to FY26, Fast Retailing Co reported a 14.8 per cent growth in consolidated revenue to a record ¥1.028 trillion ($6.58 billion) in Q1, FY26. This milestone marks the first time the Japanese retail giant has breached the trillion-yen mark in a single quarter, propelled by a vigorous 31 per cent jump in business profit to ¥205.6 billion. The results signal a robust recovery in Greater China, where revenue and profit both returned to double-digit growth paths, alongside exceptional demand in North America and Europe. Despite escalating global trade complexities and US tariff pressures, the group successfully expanded its gross margin by 0.7 percentage points, driven by disciplined discounting and the absorption of costs through enhanced operational productivity.
Aggressive global footprint and inventory agility
The group's ‘LifeWear’ philosophy continues to gain significant traction, particularly in Western markets where Uniqlo International revenue climbed 20.3 per cent. In the United States, North American revenue rose by 30 per cent, supported by a strategic roadmap that includes 11 new store openings scheduled for spring and summer 2026 across major hubs like Chicago and San Francisco. This expansion is complemented by a sophisticated inventory management system that allowed the brand to transition seamlessly between seasons. By optimizing the organization of inter-season business, Fast Retailing enabled Fall staples and year-round basics to drive high-margin sales even during unseasonably warm periods in Japan and China.
Revised FY2026 guidance and market resilience
Boosted by this stronger-than-expected performance, Fast Retailing has upwardly revised its full-year guidance for the period ending August 2026. The company now anticipates consolidated revenue of ¥3.8 trillion and a business profit of ¥650 billion, reflecting a 17.9 per cent annual increase. While youth-centric brand GU saw profit jump 20 per cent despite a lack of trend-driven momentum, the group’s Global Brands segment, including Theory, faced headwinds from sluggish US demand. Nevertheless, Takeshi Okazaki, CFO emphasized, the company remains on a fifth consecutive year of record profit trajectory, raising the annual dividend forecast to ¥540 per share as a testament to its healthy cash flow and market dominance.
Fast Retailing is a leading Japanese retail holding company that operates Uniqlo, GU, and Theory. It commands a dominant position in Asia and is rapidly scaling flagship stores in Europe and North America. Projecting ¥3.8 trillion in FY2026 sales, the group aims to become the world’s largest apparel retailer, building on a history that began with a single store in 1984.
