Uniqlo owner Fast Retailing is reportedly on course to overtake H&M in annual sales for the first time, driven by strong growth across Europe and North America.
The Japanese brand posted a 16.6 per cent rise in revenue to £18.7bn for the year to 31 August 2026, putting it on track to surpass its Swedish rival and cement its position as one of the world’s largest fashion retailers.
Operating profit jumped 32 per cent to £3.5bn, marking its fifth consecutive year of record earnings, while net profit climbed 25 per cent per cent to £2.6bn.
The performance was fuelled by Uniqlo’s international expansion, particularly in Europe and North America, where combined sales overtook those in Greater China for the first time.
Uniqlo has traditionally relied heavily on its Asian markets, but has increasingly focused on growing its presence in Western countries. In the UK, locations are largely centred around London, with 15 stores in the region including flagship locations on Oxford Street and Covent Garden.
Uniqlo’s success has been underpinned by demand for its affordable, minimalist wardrobe staples and functional clothing, alongside an accelerated programme of new store openings.
Its focus on versatile, year-round clothing has also helped it navigate changing consumer trends and unpredictable weather conditions.
Fast Retailing is further stepping up its ambitions to compete with Zara owner Inditex for the position of the world’s largest mass-market fashion retailer.
Founder and chief executive Tadashi Yanai has reiterated his ambition to grow the business to ¥10trn in annual sales, with the company targeting further expansion across international markets.
Fast Retailing expects the momentum to continue in its new financial year, forecasting a 12 per cent increase in revenue and net profit of ¥560bn.
Click here to sign up to Retail Gazette‘s free daily email newsletter
