Fast Retailing (9983) Q2 2025 earnings summary

Executive summary

• Achieved record first-half revenue and profit, exceeding estimates, driven by strong UNIQLO performance in Japan, Southeast Asia, India & Australia, North America, and Europe.

• New store openings in North America and Europe significantly boosted e-commerce and expanded the customer base.

• Profit declined in UNIQLO Mainland China and GU, with structural reforms underway to address issues.

• Notable sustainability initiatives included major emissions reductions, expanded recycling, and disaster relief donations.

Financial highlights

• 1H FY2025 revenue rose 12.0% year-over-year to ¥1.7901 trillion; gross profit up 13.0% to ¥954.8 billion.

• Operating profit increased 18.3% to ¥304.2 billion; profit attributable to owners up 19.2% to ¥233.5 billion.

• Gross profit margin improved to 53.3% (+0.4p); SG&A ratio decreased to 36.5% (−0.7p).

• Total assets reached ¥3.7291 trillion; equity up to ¥2.2587 trillion; equity ratio 58.9%.

• Interim dividend set at ¥240, with full-year dividend forecast at ¥480 per share.

Outlook and guidance

• FY2025 revenue forecast maintained at ¥3.4 trillion; operating profit revised up to ¥545.0 billion (+8.8% y/y).

• Profit attributable to owners expected to reach ¥410.0 billion (+10.2% y/y); basic EPS forecast at 1,336.51 yen.

• 2H revenue and business profit expected to rise, but operating profit to dip slightly due to absence of prior year’s temporary gains and US tariffs.

• Tariffs expected to impact 2H consolidated business profit by 2–3%.

• Business forecasts subject to changes in economic environment, market demand, price competition, and exchange rates.