Uniqlo's Europe and North America sales surpass China in fifth record year
Uniqlo sales in Europe and North America together topped Greater China for the first time, as operating profit rose 32% to $4.7 billion
Key takeaways
Sales at Japanese fashion giant Uniqlo topped $5.5 billion (¥877.5 billion) in Europe and North America in the year ended August 31, 2026, holding company Fast Retailing said on Thursday. This surpassed $4.6 billion (¥724.0 billion) of sales in Greater China, marking the first time Western markets outperformed the region.
Uniqlo's revenue in Europe and North America also increased significantly, up 38.7% to $3.2 billion (¥512.6 billion) and 34.6% to $2.3 billion (¥364.9 billion), respectively. This sent business profits skyrocketing in the regions - up 69% in Europe and 53.3% in North America.
In local currency, Fast Retailing said Europe, North America, South Korea, Southeast Asia, India and Australia all grew revenue and profit at a double-digit rate.
Japan is still Uniqlo's largest market, with revenue there at $6.8 billion (¥1.0848 trillion) in the year to the end of August, up 5.7%.
Fast Retailing said total operating profit rose about 32% to $4.7 billion (¥743.13 billion), above the $4.6 billion (¥730 billion) the company had forecast in July and a $4.5 billion (¥726.45 billion) average from 16 analysts in an LSEG poll. The firm said this marked a fifth straight year of record profit.
Fast Retailing defines business profit as revenue minus the cost of the goods and the costs of selling and administration, a different line from operating profit. Group business profit was $4.53 billion (¥718.4 billion), up 30.4%, above a July forecast of $4.48 billion (¥710 billion). The 69% gain in Europe and the 53.3% gain in North America are on this line.
Mainlaind China returning to growth
Greater China revenue rose 11.3%, and business profit there rose 24.6% to $707 million (¥112.0 billion). Mainland China is only part of that region, which also includes Hong Kong and Taiwan.
Fast Retailing said the mainland showed encouraging signs of a return to growth. Shoppers there have been reluctant to spend, and the company has been closing underperforming shops and replacing them with larger ones. It expects mainland revenue to rise in the year ahead.
Net profit, the profit left for the parent company's owners, was $3.4 billion (¥542.5 billion), up 25.3%, above the $3.1 billion (¥500 billion) forecast in July. The year-end dividend is $3.35 (¥530) per share. With the $2.02 (¥320) interim dividend, the annual payout is $5.37 (¥850), $2.21 (¥350) more than last year, and above the $4.05 (¥640) still in the July forecast.
For the year ending August 31, 2027, Fast Retailing expects revenue of $28.1 billion (¥4.45 trillion), up 12.3%, and business profit of $5.2 billion (¥830 billion), up 15.5% from this year's $4.5 billion (¥718.4 billion). Profit before income taxes is guided to $5.5 billion (¥880 billion), up 9.7%, and net profit to $3.5 billion (¥560 billion), up 3.2%. The annual dividend is forecast at $5.69 (¥900), $0.32 (¥50) higher.
Fast Retailing expects Europe and North America to grow revenue and profit at a double-digit rate again next year. It said the two regions have become pillars of the group's growth.
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Frequently asked questions
Did Europe and North America sales pass Greater China?
Combined sales were ¥877.5 billion, against ¥724.0 billion in Greater China.
Did Greater China sales fall?
Greater China revenue rose 11.3%, and business profit there rose 24.6% to ¥112.0 billion.
Is Japan still the largest market?
Japan is still the largest market, with Uniqlo revenue of ¥1.0848 trillion, up 5.7%.
What does Fast Retailing expect next year?
It expects revenue of ¥4.45 trillion, up 12.3%, and double-digit revenue and profit growth in Europe and North America again.
