TOKYO (Reuters) -Japan’s Fast Retailing, owner of global clothing brand Uniqlo, booked its fourth consecutive year of record profit on Thursday, as it withstood headwinds from U.S. tariffs.
Operating profit was 564.3 billion yen ($3.69 billion) in the 12 months through August, up about 13% from 500.9 billion yen in the prior period, the apparel maker said in a statement.
That compared with the company’s own forecast of 545 billion yen and the 546 billion yen average estimate from 16 analysts polled by LSEG.
Fast Retailing forecast operating profit in the year through August 2026 to reach 610 billion yen.
From one store in Hiroshima, western Japan, 41 years ago, Uniqlo has grown to more than 2,500 locations across the world, selling inexpensive fleeces and cotton shirts made primarily in China and other Asian manufacturing hubs.
With the economy cooling in China, the company’s biggest overseas consumer market with some 900 Uniqlo stores on the mainland, Fast Retailing has increasingly looked to North America and Europe for growth.
But that strategy has been undermined by tariffs imposed by the administration of U.S. President Donald Trump.
Fast Retailing warned in July that U.S. tariffs would start to have a significant impact on its operations in the market later in the year, forcing it to hike prices.
Tokyo and Washington later inked a deal to set a 15% tariff on most Japanese imports, less than the 25% level initially announced. It is uncertain how that impacts Uniqlo goods sold in the U.S., which are primarily produced in Southeast Asia and South Asia.
Fast Retailing tends to benefit both at home and abroad from a weak yen, which is now trading at the lowest since February against the dollar and a record low versus the euro.
A tourism boom in Japan has led to a surge in duty-free shopping at domestic stores, while revenue from the company’s Western markets gets an added boost when translated back into yen.
Founder Tadashi Yanai, Japan’s richest man, has long aimed to make his firm the world’s biggest fashion retailer, with Zara owner Inditex and H&M standing in the way.
And in recent years, the company has faced fierce price competition from online retailers Shein and Temu.
($1 = 152.9600 yen)
(Reporting by Rocky Swift in Tokyo; Editing by Muralikumar Anantharaman)
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