Fast Retailing (9983) Q1 2026 earnings summary

Executive summary

• Achieved record revenue and profit in 1Q FY2026, surpassing October 2025 estimates, driven by strong performances from UNIQLO Japan and UNIQLO International.

• All major business segments, especially UNIQLO International, reported strong revenue and profit growth, driven by global expansion and effective marketing.

• GU segment posted slight revenue growth and significant profit increase, while Global Brands contracted as restructuring continued.

• Gross profit margin improved by 0.7p to 55.2%; SG&A ratio improved by 1.7p to 35.2%.

• Finance income net of costs was ¥15.7bn, including ¥11.4bn in net interest income and ¥4.2bn in foreign exchange gains.

Financial highlights

• 1Q FY2026 revenue rose 14.8% year-over-year to ¥1,027.7bn; business profit up 31.0% to ¥205.6bn.

• Operating profit increased 33.9% to ¥210.9bn; profit attributable to owners up 11.7% to ¥147.4bn.

• Total comprehensive income for the period was ¥345.7bn, up 49.6% year-over-year.

• Basic earnings per share rose to ¥480.55 from ¥430.19 a year earlier.

• Equity per share attributable to owners increased to ¥8,161.23 from ¥7,408.65 at the end of August 2025.

Outlook and guidance

• FY2026 revenue estimate revised upward to ¥3,800bn (+11.7% y/y); business/operating profit forecast raised to ¥650bn (+17.9% y/y).

• Profit attributable to owners is forecast at ¥450bn (+3.9%), with basic EPS expected at ¥1,466.64.

• UNIQLO International expected to deliver double-digit revenue and profit growth across all regions for FY2026.

• UNIQLO Japan forecasts full-year revenue and profit growth, with same-store sales expected to rise ~4% y/y.

• GU anticipates higher revenue and profit for FY2026, with new creative leadership and product revamp.

• Global Brands expect slight full-year growth, with PLST strong and Theory/CDC/PTT under restructuring.

• FY2026 dividend forecast raised to ¥540 per share.