On April 9, Fast Retailing announced its financial results for the second quarter of fiscal year ending August 2026 (six months through February), alongside an upward revision to its full-year earnings forecast.
The company raised its operating profit outlook for fiscal 2026 from ¥650 billion to ¥700 billion. It now projects revenue of ¥3.9 trillion, business profit of ¥690 billion, and profit attributable to owners of the parent of ¥480 billion—all expected to reach record-high levels.
Strong First-Half Performance Highlights Structural Profit Expansion
In the first half of fiscal 2026, consolidated revenue rose to ¥2.0552 trillion, up 14.8% year-on-year, while business profit increased to ¥386.9 billion, up 28.3%. Profit attributable to owners of the parent also grew to ¥279.2 billion, marking a 19.6% increase.
These results indicate not only top-line growth but also a structural strengthening of profitability. In particular, the improvement in business profit margin suggests that the company’s earnings base is becoming increasingly robust.
UNIQLO International Emerges as Core Growth Driver
The primary engine of growth was UNIQLO’s international business. Revenue from UNIQLO International reached ¥1.2413 trillion, up 22.4%, while business profit surged to ¥233.0 billion, up 37.4%.
All major markets—including Greater China, South Korea, Southeast Asia, India and Australia, North America, and Europe—delivered strong growth. This performance reflects the expansion of global flagship and large-format stores, combined with the successful execution of a year-round product strategy. Product offerings tailored to local demand and evolving market conditions helped drive both revenue and profit across regions.
UNIQLO Japan and GU Deliver Steady Growth and Improved Profitability
In Japan, UNIQLO reported revenue of ¥581.7 billion, up 7.4%, and business profit of ¥110.7 billion, up 13.4%. Same-store sales increased by 6.5%, supported by strong demand for both year-round and winter products.
GU, meanwhile, posted modest revenue growth of 1.6% to ¥168.4 billion, while business profit rose significantly by 20.1% to ¥15.7 billion. Structural reforms—including a more focused product assortment and improved inventory planning accuracy—contributed to enhanced profitability.
Global Brands Face Challenges Amid Ongoing Restructuring
The Global Brands segment continued to face challenges, reporting revenue of ¥62.7 billion, down 7.5%, and a business loss of ¥0.7 billion.
Performance was weighed down primarily by Theory’s U.S. business, which suffered from weak wholesale demand, underperforming department stores, and bad debt losses linked to a bankrupt partner. In contrast, PLST achieved both revenue and profit growth, highlighting diverging performance within the segment. Structural reforms, including the closure of unprofitable stores, are ongoing.
Three Key Drivers Behind the Upward Revision
The upward revision to the full-year forecast is driven by three key factors:
- Stronger-than-expected first-half performance
- Improved outlook for the second half based on current sales trends
- Revised exchange rate assumptions reflecting yen depreciation
While currency movements have increased procurement costs, they have also boosted the yen value of overseas earnings.
Global Expansion and New Consumer Touchpoints Reinforce Growth Strategy
The revised outlook reflects not only strong financial performance but also the tangible progress of Fast Retailing’s global strategy in strengthening both brand value and revenue.
In February 2026, the company released three new designs under its “PEACE FOR ALL” charity T-shirt initiative, continuing to integrate social impact with product development.
In March, it announced a partnership with the Los Angeles Dodgers, including plans to establish “UNIQLO Field at Dodger Stadium,” expanding its presence through sports-driven consumer engagement in North America.
Further, on April 3, UNIQLO unveiled an annual partnership with The New York Public Library. In conjunction with new store openings in Bryant Park, Williamsburg, and Union Square in Manhattan, the initiative includes cultural program support, as well as exclusive UTme! and embroidery designs available at the Bryant Park location.
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