Fast Retailing, the Japanese group behind UNIQLO and GU, has delivered its strongest first-half performance on record and lifted its full-year targets, citing broad-based momentum across UNIQLO Japan and especially UNIQLO International. The retailer said the Fast Retailing FY26 H1 results came in ahead of internal expectations, prompting an upgrade to revenue and profit guidance for the fiscal year ending 31 August 2026.
For the six months to 28 February 2026, the company reported revenue of ¥2.0552 trillion (about $12.95 billion), up 14.8% year on year. Business profit rose 28.3% to ¥386.9 billion, while operating profit climbed 31.7% to ¥400.6 billion. Profit attributable to owners of the parent increased 19.6% to ¥279.2 billion, according to the company.
Profitability also strengthened at the gross level. Gross profit grew 16.4% to ¥1.1115 trillion and gross margin improved by 0.8 percentage points to 54.1%, reflecting a richer mix of products and better execution across markets.
On the back of the first-half beat, Fast Retailing raised its full FY26 forecast. It now expects revenue to reach ¥3.9 trillion (around $24.57 billion), representing 14.7% growth versus FY25, up from a previous forecast of ¥3.8 trillion. Business profit is now projected at ¥690 billion, a 25.2% increase from FY25 and above the prior ¥650 billion estimate. Operating profit is expected to hit ¥700 billion, up 24.1%.
UNIQLO delivered higher sales and profits across every region, producing what Fast Retailing described as the best first-half outcome in its history at group level. In Japan, UNIQLO revenue increased 7.4% to ¥581.7 billion and business profit rose 13.4% to ¥110.7 billion.
Internationally, UNIQLO remained the primary growth driver. First-half revenue jumped 22.4% to ¥1.2413 trillion, while business profit surged 37.4% to ¥233 billion, supported by strong same-store performance and improved merchandising.
In Greater China—including Hong Kong, Macau and Taiwan—the company said results exceeded plan with higher revenue and double-digit profit growth. Mainland China returned to growth in January and February after a softer December that management attributed to unusually warm weather.
South Korea recorded double-digit gains in both revenue and profit, helped by strong comparable-store sales and more effective digital communication of product benefits and styling, particularly with younger shoppers. In Southeast Asia, India and Australia, Fast Retailing reported higher revenue and profit across all markets, alongside double-digit same-store sales growth.
North America and Europe also posted double-digit increases in both sales and profitability. In the US and Canada, the company said strong comparable sales were supported by successful promotion of winter ranges as well as core, year-round staples such as sweatshirts, pants and Jersey Barrel Leg Pants.
Fast Retailing pointed to an expanding contribution from year-round products as a consistent tailwind across regions. It highlighted global demand for styles including Jersey Barrel Leg Pants, Baggy Curve Jeans and Wide Sweatpants, alongside refreshed “core” items updated to match current silhouettes and fabric preferences. The company also credited tighter coordination between production, marketing and sales for better planning accuracy, as well as improved communication of styling ideas through both stores and e-commerce.
The GU brand delivered comparatively modest top-line growth but a sharper improvement in profitability. GU revenue rose 1.6% to ¥168.4 billion in the half, while business profit increased 20.1% to ¥15.7 billion and operating profit rose 18.3% to ¥16.4 billion. Its gross margin improved by 1.1 percentage points to 49.4%.
Looking to the second half of the year, Fast Retailing said it will prioritise building a “more value-creating” business model—maintaining lean inventory while avoiding stock-outs, strengthening store-level autonomy, upgrading the quality of its store network, and investing further in global management capability and talent.
Store expansion remains incremental rather than aggressive. As of end-February 2026, the group operated 3,532 stores worldwide (excluding the Mina format and pop-up locations) and expects to finish FY26 with 3,551 stores.
With the upgraded guidance, the Fast Retailing FY26 H1 results underscore how UNIQLO’s international engine—paired with stronger product execution and year-round staples—continues to push the group’s growth and margin profile higher despite uneven weather-driven demand swings in key markets.
