Annual sales at Uniqlo owner Fast Retailing are set to eclipse Sweden’s H&M for the first time following a worldwide sales boom. The Japanese retailer reported annual revenue rose 16.6 per cent to ¥3.96tn ($25bn) in the year to August 31, surpassing analysts’ estimates of Skr222bn ($22.2bn) for H&M’s full year. Fast Retailing aims to overtake Zara owner Inditex to become the world’s top mass-market casual fashion retailer.
Founder Tadashi Yanai said their pursuit of becoming number one enters a new stage. Uniqlo’s focus on well-designed essentials has helped it outperform other fast-fashion brands as consumers gravitate towards minimalist styles. President Daisuke Tsukagoshi cited strengthening “seasonless” clothing as key to growth amid climate-driven weather changes.
Founded in 1984, Uniqlo grew rapidly after Japan’s asset bubble burst, manufacturing simple, affordable basics at scale. The company benchmarks itself against mainstream casual fashion retailers controlling design to sales, excluding Shein, TJ Maxx, sports brands, and luxury houses. Under this ranking, Uniqlo is poised to leap over H&M into second place.
Achim Berg of Fashion Sights noted the milestone reflects Uniqlo’s business model strength and H&M’s current weakness, though Yanai’s ambition to become the world’s largest fashion retailer remains unmet. Fast Retailing posted its biggest sales rise since 2023, driven by new stores and hit products, underpinning a fifth year of record net profit at ¥542bn ($3.4bn). The dividend was increased by a third to ¥850 a share, with revenue forecast to grow 12 per cent to ¥4.45tn and net profit to ¥560bn next year.
Revenue outside Japan rose over a quarter, with combined North America and Europe sales exceeding Greater China for the first time, signaling Uniqlo’s shift from an Asian base. Japan faces pressure from yen weakness, requiring potential price increases to cover costly imports.
Source: Financial Times Companies · Summarized by HeadlinesBriefing