Sweden’s H&M Group managed to widen its absolute revenue lead over regional competitors in FY25. Reporting net sales of approximately $24.8 billion (SEK 264 billion), the group successfully leveraged its ‘omni-model’ to integrate digital and physical retail. Despite closing nearly 120 underperforming locations, H&M achieved a 2 per cent increase in local currency sales. This growth was particularly robust in Western and Eastern Europe, where refurbished flagship stores and high-profile designer collaborations served to defend market share against ultra-fast fashion disruptors.

Uniqlo's performance-driven global breakout

While H&M dominates in total volume, Japan’s Fast Retailing - parent company of Uniqlo—emerged as the year’s definitive growth narrative. Uniqlo International reported a record-breaking 11.6 per cent revenue rise to $12.5 billion (¥1.91 trillion), signaling a successful export of its ‘LifeWear’ philosophy. Our popularity is rising worldwide as the focus shifts from disposable trends to high-quality, functional essentials, stated a spokesperson for Fast Retailing. The brand’s expansion into North America and Europe was particularly aggressive, with revenue in these regions rising by 24.5 per cent and 33.6 per cent respectively, effectively absorbing costs from recent US tariff adjustments through premium pricing and inventory precision.

Navigating logistics and consumer shifts

The retail landscape remains challenged by logistical volatility and a heightened consumer focus on durability. While H&M is prioritizing a circular economy - reaching a 29 per cent threshold for recycled materials in its latest sustainability audit- Uniqlo is capturing the ‘utility’ segment by expanding its uniform and high-performance athleisure lines. Both giants are now competing for a new category of ‘purposeful shoppers,’ where the winner is determined less by the speed of new arrivals and more by the technical resilience and environmental transparency of the supply chain.

H&M and Uniqlo are the primary pillars of the global apparel market, collectively operating over 6,500 stores. H&M focuses on trend-driven fashion and premium sub-brands like COS, while Uniqlo specializes in technical basics like HeatTech and Airism. Both companies are currently expanding in India and Southeast Asia to offset softer demand in Greater China. Financially, both target steady single-digit revenue growth while aiming for double-digit operating margins through automation and store optimization.