FAST RETAIL-DRS (06288) announced its interim results for the six-month period ended February 28, 2026. Revenue reached 2,055.227 billion yen, representing a year-on-year increase of 14.8%. Profit attributable to owners of the parent company amounted to 279.29 billion yen, a significant growth of 19.6% compared to the same period last year. Basic earnings per share were 910.25 yen. The company will apply to the Stock Exchange for the resumption of trading of its Hong Kong Depositary Receipts from 9:00 a.m. on Friday, April 10, 2026.
In the Japan UNIQLO business segment, total revenue for the first half of the fiscal year was 581.7 billion yen, an increase of 7.4% year-on-year. Segment profit totaled 110.7 billion yen, rising 13.4%. This performance reflects both revenue growth and a substantial profit increase. The strategic sales deployment of year-round merchandise effectively drove revenue growth. Furthermore, sales of winter goods were robust as temperatures dropped, contributing to a 6.5% year-on-year increase in net sales per store, including online store sales. A weaker yen impacted the contracted exchange rates used for procurement, leading to a higher cost ratio and consequently a 0.2 percentage point decline in the gross profit margin. However, due to strong sales performance and a decrease in the ratio of personnel and rental expenses, the selling, general and administrative expenses to revenue ratio improved by 1.2 percentage points compared to the previous year.
The overseas UNIQLO business segment reported total revenue of 1,241.3 billion yen for the first half, a substantial increase of 22.4% year-on-year. Segment profit surged 37.4% to 233.0 billion yen, achieving significant growth in both revenue and profit. By region within this segment: In Greater China, the Mainland China market achieved revenue growth and double-digit profit growth. During the single quarter of the second period, despite rising temperatures, strong sales were driven by enhanced promotional efforts for spring and year-round styles, including pants, sweatshirts, and casual outerwear, during the Lunar New Year sales campaign. The Hong Kong, China market saw revenue growth but a decline in profit; however, profit showed an increase when excluding the impact of rising royalty payments to headquarters. The Taiwan, China market achieved growth in both revenue and profit. In South Korea, the strategic use of digital technology for information dissemination proved highly effective, leading to expanding support for UNIQLO, particularly among younger customer segments, resulting in double-digit growth in both revenue and profit. The Southeast Asia, India, and Australia region also achieved double-digit growth in both revenue and profit. Strategic expansion of winter inventory and sales floors boosted revenue growth, while strong sales of spring/summer items like pants, short-sleeve knitwear, and linen-blend shirts contributed to revenue and profit growth across all countries in the region. North America and Europe also continued their strong growth trajectory, achieving double-digit increases in both revenue and profit. Robust sales of winter items, including HEATTECH innerwear and down jackets, coupled with strong performance from year-round goods like sweatshirts and pants, drove double-digit growth in net sales per store.
In the GU business segment, total revenue for the first half was 168.4 billion yen, a slight increase of 1.6% year-on-year. Segment profit grew significantly by 20.1% to 15.7 billion yen, indicating a modest revenue increase alongside double-digit profit growth. Trend-focused products, such as soft, sheer T-shirts and pleated ballet flats, were popular among young customers in various regions, leading to strong sales. Furthermore, new stores in the Taiwan and Hong Kong markets continued to perform excellently, contributing to revenue growth. Operational reforms within this segment, including focusing product assortments on bestsellers and improving sales planning accuracy, led to improvements in both the gross profit margin and the SG&A to revenue ratio, consequently increasing the segment profit margin.
The Global Brands business segment reported revenue of 62.7 billion yen for the first half, a decrease of 7.5% compared to the previous year. The segment recorded a loss of 0.7 billion yen, compared to a profit of 1.1 billion yen in the same period last year. This was primarily due to challenges faced by the Theory business. Theory experienced a decline in revenue and a slight loss, mainly driven by decreased revenue and a loss in the US market. In the US, besides difficulties in the wholesale business due to weak department store performance, the closure of the US online discount store in March of the previous year also contributed to the revenue decline. Regarding profitability, a loss was recorded due to bad debt expenses related to a department store wholesale customer's bankruptcy. In contrast, the PLST business achieved revenue growth and double-digit profit growth, driven by strong sales of items like men's rayon-blended wear and Melton knitwear, alongside a significant increase in online store sales. The French brands Comptoir des Cotonniers and Princesse tam.tam saw revenue decline as a result of business structure reforms that focused the store network on urban centers, nearly halving the total number of stores by the end of February compared to the previous year. However, the closure of unprofitable stores and reforms to the expense structure improved the SG&A to revenue ratio, thereby narrowing the loss.
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