Uniqlo operator Fast Retailing reports record profit for fourth consecutive year

Japanese company Fast Retailing, owner of the global clothing brand Uniqlo, reported its fourth consecutive year of record profit, citing strong sales in Japan and solid results in the United States that offset the impact of higher tariffs.

Operating profit for the 12 months through August rose about 13% – to €3.18 billion compared with €2.82 billion a year earlier.

This figure exceeded both the company’s own forecast of €3.07 billion and the €3.08 billion average estimate based on a survey of 16 analysts by LSEG.

In Japan, revenue grew thanks to strong tourist spending, while the international segment posted record results. However, in the Greater China market, the company continues to face challenges – sales and profit are declining as consumer demand remains subdued.

Due to the slowing Chinese economy, which is the company’s largest overseas market with about 900 Uniqlo stores, Fast Retailing is increasingly focusing on North America for growth.

However, Fast Retailing’s global strategy has been complicated by tariffs imposed by the administration of U.S. President Donald Trump. In July, the company warned that U.S. tariffs would start to significantly impact its operations in the region later in the year. Nevertheless, price increases and cost-cutting measures helped Fast Retailing increase sales and profit in the U.S. during the reporting period.

Later, Tokyo and Washington reached an agreement setting a 15% tariff on most Japanese imports, lower than the initially announced 25% level. It remains unclear how this will affect Uniqlo products sold in the U.S., as most of the brand’s production is located in Southeast and South Asia.