Fast Retailing posted its fourth consecutive year of record results, though profit growth is set to slow as the Japanese apparel giant grapples with weakness in China and mounting tariff pressures in the United States.
The owner of UNIQLO reported revenue of ¥3.40 trillion ($23.3 billion) for the fiscal year ended August 2025, up 9.6% from a year earlier, according to results released Thursday. Net income climbed 16.4% to ¥433.0 billion, beating the company’s earlier projections. Business profit, which strips out financial and other items, rose 13.6% to ¥551.1 billion.
The results mark a milestone for UNIQLO’s Japanese operations, which crossed ¥1 trillion in annual revenue for the first time. Same-store sales in the home market jumped 8.1% as the chain benefited from tourism spending and better inventory management. The domestic unit’s operating margin expanded to 18% from 16.7% a year earlier.
Growth proved harder to come by in Greater China, where revenue declined 4% and operating profit fell roughly 11% as consumers pulled back on apparel spending. The mainland market, which hosts more than 900 UNIQLO stores, has struggled with weak demand and inventory misalignment for much of the year, prompting management to shift toward opening fewer but larger locations.
UNIQLO International still delivered an 11.6% revenue increase to ¥1.91 trillion, driven by double-digit gains in North America and Europe. The North American business saw revenue surge 24.5% and profit jump 35.1%, even as the Trump administration imposed higher tariffs on Asian imports. Chief Financial Officer Takeshi Okazaki said the company absorbed most tariff costs through pricing adjustments and tighter expense controls.
The company’s GU fast-fashion brand remained a weak spot, with operating profit tumbling 12.6% to ¥28.3 billion despite a modest revenue gain. Management cited insufficient hit products and rising labor costs from wage increases and the opening of a U.S. store.
For the current fiscal year ending August 2026, Fast Retailing forecast revenue of ¥3.75 trillion and net income of ¥435.0 billion, representing growth of 10.3% and just 0.5% respectively. The muted profit outlook reflects continued headwinds from China and elevated costs in the U.S. market.
The company raised its annual dividend by ¥20 to ¥520 per share. The full-year payout for fiscal 2025 climbed ¥100 to ¥500.
