Uniqlo Parent Fast Retailing Posts 33% Profit Surge, Raises Full-Year Forecast

Fast Retailing, the Japanese parent company of global fashion brand Uniqlo, reported a 33% surge in second-quarter operating profit and raised its full-year outlook, showcasing resilience despite growing U.S. trade tensions. Operating profit hit 146.7 billion yen ($999.9 million) for the three months ending February, up from 110.4 billion yen a year earlier and beating analyst expectations of 125.9 billion yen, according to LSEG.

The company revised its full-year operating profit forecast to 545 billion yen, up from a previous 530 billion yen projection. Strong sales in both domestic and international markets contributed to the impressive results, helping offset weaker performance in mainland China, where Uniqlo operates over 900 stores.

Despite looming U.S. tariffs, Fast Retailing expects limited impact on North American profits in the second half of the year, noting that most inventory has already arrived in the U.S. However, the company acknowledged a potential decline in North American earnings due to the new trade measures.

Uniqlo’s global footprint has expanded from a single store in Hiroshima 40 years ago to over 2,500 outlets worldwide, relying heavily on manufacturing in China and Southeast Asia. That model is now challenged by rising trade barriers, including a recently announced 24% tariff on Japanese non-automotive products by former President Donald Trump, though implementation has been delayed by 90 days. Meanwhile, tariffs on Chinese goods have been raised from 104% to 125%.

Founder Tadashi Yanai, Japan’s wealthiest individual, has consistently advocated for free trade and defended Uniqlo’s ties to China despite international scrutiny over human rights issues. As growth slows in China, Fast Retailing is shifting focus to North America and Europe to sustain its global expansion.