Core Insights - Fast Retailing reported a consolidated revenue increase of 14.8% for Q1 2026, reaching JPY1.0277 trillion ($6.55 billion), compared to JPY895.192 billion in the same period last year [1] - The company's operating income rose by 33.9% to JPY210.914 billion from JPY157.556 billion year-on-year [1] Financial Performance - Profit for the period increased by 13% to JPY158.513 billion, up from JPY140.300 billion in Q1 2025, while profit before income taxes rose by 15.3% to JPY226.667 billion [2] - Consolidated gross profit margin expanded by 0.7 points year-on-year to 55.2%, and the selling, general and administrative expense ratio improved by 1.7 points to 35.2% [2] Brand Performance - Uniqlo brand experienced growth across all global markets, with Uniqlo International's revenue rising 20.3% year-on-year to JPY603.8 billion and business profit expanding by 38% to JPY117.3 billion [3] - The business profit margin for Uniqlo International improved by 2.4 points year-on-year due to better gross profit margins and expense ratios across regions [4] - Uniqlo Japan also reported strong results, with revenue up 12.2% year-on-year to JPY299.0 billion and business profit increasing by 20.2% to JPY62.4 billion [4] Strategic Focus - Fast Retailing Group aims to become the world's number one brand by strengthening management talent training, pursuing sustainable business models, and meeting customer needs [5] - The company plans to diversify global earnings, expand GU and Global Brands, and reform cost structures to adapt to inflation [5] - Fast Retailing is committed to creating LifeWear, focusing on high-quality, sustainable clothing that minimizes environmental impact and promotes safe working conditions [5]

Group 1 - Goldman Sachs has raised the operating profit forecasts for FAST RETAIL-DRS (06288) for the fiscal years 2026 to 2028 by 2%, 1%, and 1% respectively, reflecting strong domestic sales momentum in Japan as of November [1] - From September to November, same-store sales in Japan increased by 11%, while overall sales grew by 12.1% year-on-year [1] - The company expects the consolidated operating profit for the first quarter of fiscal year 2026 to be 184 billion yen, representing a year-on-year growth of 17% [1] Group 2 - Goldman Sachs has raised the target price for Fast Retailing's stock (9983.JP) to 60,000 yen and maintains a "Buy" rating [1] - The forecast includes factors such as the bottoming out of performance in mainland China and the impact of U.S. tariffs, with expected sales and operating profit in the Chinese market increasing by 2% and 5% respectively [1] - In North America, despite tariff impacts, the company is expected to improve its operating profit margin in fiscal year 2026 through price adjustments, discount control, and enhanced labor efficiency, particularly in the second half of the fiscal year [1] Group 3 - In Japan, due to the weakening yen leading to reduced price increases for Uniqlo, the consolidated operating profit margin for fiscal year 2026 is forecasted to be 16.9%, an improvement of 0.3 percentage points year-on-year [1]

Core Insights - Fast Retailing, the parent company of Uniqlo, has reported an annual profit for the fourth consecutive year, with consolidated revenue rising 9.6% year-on-year to Y3.4 trillion ($22.3 billion) for the fiscal year ending August 31, 2025 [1] - The company anticipates continued growth, projecting a 10.3% increase in consolidated revenue to Y3.75 trillion for fiscal 2026 [4] Financial Performance - Business profit increased by 13.6% to Y551.1 billion, while profit attributable to owners of the parent grew 16.4% to Y433.0 billion [1] - Uniqlo Japan reported revenue of Y1.02 trillion, a 10.1% increase, and business profit of Y181.3 billion, up 17.5% from the previous year [2] - Uniqlo International posted revenue of Y1.91 trillion, an 11.6% increase, and business profit of Y305.3 billion, a 10.6% rise [2] Market Performance - Revenue in North America grew significantly by 24.5%, with business profit rising 35.1% [1] - Despite a decline in revenue and profit in the Greater China market, operations in South Korea, Southeast Asia, India, Australia, North America, and Europe reported gains [3] Brand Performance - The GU brand recorded revenue of Y330.7 billion, up 3.6%, but business profit declined 12.6% to Y28.3 billion due to higher costs [3] - Global Brands experienced a 5.3% fall in revenue to Y131.5 billion, but business profit improved significantly from Y0.1 billion to Y2.6 billion [4] Future Plans - The company plans to pay an annual dividend of Y520 per share and aims to expand its global store network to 3,594 locations by the end of August 2026 [5] - New flagship outlets are planned in North America, Europe, and Greater China [5]

Uniqlo owner Fast Retailing’s shares climbed the most in six months after reporting double-digit revenue and profit growth in North America https://t.co/y5U1guKoEf ...