Uniqlo owner lifts full-year profit forecast as international growth accelerates

Fast Retailing, the Japanese retail group behind Uniqlo, has raised its full-year operating profit forecast to ¥730 billion (£3.37 billion) after third-quarter earnings surged 45.7% year-on-year to ¥213.79 billion (£1.3 billion) for the three months to 31 May 2026.

Key numbers

• Q3 operating profit: ¥213.79 billion (£1.3 billion), up 45.7% (from ¥146.74 billion, or £678 million).
• Q3 revenue: ¥1.0099 trillion (£4.67 billion), up 22.2%.
• Full-year operating profit guidance raised to ¥730 billion from ¥700 billion (£3.37 billion from £3.23 billion).

The result came in ahead of analyst expectations, leaving Fast Retailing set for a fifth straight year of record earnings. For the nine months to May, group revenue rose 17.1% to ¥3.0651 trillion and operating profit climbed 36.2% to ¥614.3 billion.

International division leads growth

Uniqlo International led growth in the quarter. The segment posted revenue of ¥592.6 billion, up 33.8%, and operating profit of ¥117.8 billion, up 63.4%. All regions reported improved profit margins, with the business profit margin expanding by 3.6 percentage points to 18.9%.

Uniqlo Japan delivered Q3 revenue of ¥285.9 billion, up 10%, and operating profit of ¥61.9 billion, up 16.9%. Same-store sales rose 9.9% over the quarter, helped by stronger tourism as the weak yen encouraged overseas shoppers to spend.

Product and trading context

Fast Retailing's results presentation pointed to strong demand for year-round items with updated silhouettes, UV Protection ranges, Easy Pants and summer products aligned to shifting temperatures. In Europe, sweatpants, jeans, shirts and casual outerwear with new designs sold well, while linen shirts and short-sleeve knitwear gained traction as temperatures rose from late May.

GU, the group's value fashion brand, also contributed a sharp profit gain, with Q3 business profit up 36.7% to ¥16.3 billion.

UK and Europe expansion 

In the UK, Uniqlo is continuing its multi-city rollout, bringing its final count to 24 locations as of May. Another 24,000 sq ft store at Manchester's Trafford Centre and a location in Cambridge are planned for later in 2026, with Leeds to follow in 2027. That will make Manchester the first city outside London with two Uniqlo stores.

In October last year, the brand marked the opening of its first West Midlands store in Birmingham’s Bullring, followed in March this year by the re-opening of its refurbished Covent Garden store. A month later, it also opened a new store at Cabot Circus in Bristol, marking the retailer’s debut store in the South West.

The UK has become an increasingly important market for the company, with the Oxford Street flagship recently ranked as the fifth bestselling store for the brand worldwide in the six months leading up to February 2026. 

Europe delivered double-digit same-store sales growth in the quarter, and four stores opened during the period each performed above expectations. The distribution cost ratio improved after the group eliminated overlapping warehouse operations that had inflated costs a year earlier.

Sustainability targets 

Uniqlo and its parent company have also been improving their sustainability guidance. Last month, Uniqlo announced the launch of a scalable upcycled collection called Everyday Re.Imagined, created from returned items designed in collaboration with graduates from the BA Fashion course at Central Saint Martins.

Fast Retailing also shared that it had achieved its target of a 90% reduction in greenhouse gas (GHG) emissions from its own operations, including stores and offices (also referred to as Scope 1 and 2 emissions). The company achieved this target four years earlier than it had intended.tended. 

Given the acceleration in reductions, it also made a new commitment, raising its Scope 3 GHG emissions reduction target, which relates to raw material production, fabric manufacturing and the sewing of Uniqlo and GU products, from 20% to 30%.

Risks

Growth in mainland China has slowed amid weaker consumer sentiment, prompting store closures and restructuring. Conflict in the Middle East has made air freight from production bases in Southeast Asia more difficult, while ongoing rises in oil prices could lift costs for synthetic fibres.