Fast Retailing ups profit forecast following strong Q3 performance

Fast Retailing, the owner of Uniqlo, has increased its full-year profit outlook for FY26 following a boost in performance during the third quarter.

For the three months to May 31, the Japanese retail giant saw its operating profit increase 45.7 percent to 213.79 billion yen (1.3 billion pounds), up from 146.74 billion yen in the year prior.

As a result of the higher-than-anticipated results, the group raised its forecasted operating profit from 700 billion yen to 730 billion yen, keeping it on track for its fifth consecutive year of record earnings.

The Uniqlo brand welcomed an increase in revenue and profit across all regions, with the international business performing particularly well, as revenues rose 33.8 percent year-on-year, excluding forex impact.

Performance was boosted by the swift opening of Uniqlo stores across Europe and the US, which Fast Retailing said had “further enhanced global brand power and generated strong performances”.

For FY26, the group predicts gains to continue into the second half of the year across all international regions.

Gu’s revenues also increased by 7.5 percent, while its operating profit was up 34.8 percent. A reduction in sales costs and product numbers were cited as the primary drivers.

In contrast, the group’s global brands category, which includes the Theory, PLST, Comptoir des Cotonniers and Princesse tam.tam, saw sales decline 4 percent in local currency terms.

The Theory brand in particular experiencing a decline in performance. Fast Retailing pointed to the dampening of summer sales due to cool weather. This was offset by an increase in profit, driven by lower discounting rates within the US business.