KTB-issued depositary receipts for Uniqlo, trading in the Thai stock exchange under the symbol UNIQLO80, recorded a 7% jump to THB 12.30 per share on Friday. The strong performance follows a significant rally in shares of Fast Retailing Co., the parent company of the popular Uniqlo clothing chain, after the firm reported robust first-quarter earnings and raised its full-year profit forecast.
Fast Retailing’s stock surged nearly 9% on Thursday, closing at ¥61,580, significantly outpacing the Nikkei 225’s 0.5% gain.
Fast Retailing, the parent company of Uniqlo, delivered record-breaking performance in its 1QFY26 (ending November 2025), beating both revenue and profit expectations, according to a report by Kasikorn Securities. The company posted revenue of JPY 1,027 billion, a 14.8% year-on-year (YoY) increase and 3.8% above market consensus, driven by effective product portfolio management that smoothly blended all-year, fall, and winter items—enabling growth despite volatile weather.
Net profit surged to JPY 147.4 billion, up 11.7% YoY and exceeding forecasts by 13.3%. Key drivers included robust results from both domestic and international Uniqlo operations. Uniqlo Japan reported revenue of JPY 299 billion (+12.2% YoY, 2.9% above estimates), while Uniqlo International stood out with revenue of JPY 604 billion, up 20.4% YoY and 6.1% above expectations. Subsidiary GU saw only modest sales growth (+0.8% YoY), but profit jumped around 20%, reflecting the success of its internal restructuring—focusing on top-selling items and reducing product lines.
Gross margin rose to 55.2% (+80 bps QoQ, +160 bps YoY), mainly thanks to better stock management and less reliance on discounting at Uniqlo International. In contrast, gross margin in Japan dipped slightly due to higher costs from a weaker yen. The selling, general & administrative (SG&A) expense ratio also improved, dropping to 35.2% (-470 bps QoQ, -170 bps YoY), highlighting business scale and long-term operational improvements, particularly in store and logistics efficiency.
Regionally, China (+7%) became a more substantial growth engine, following store optimization and e-commerce expansion via JD.com. Southeast Asia (+22%) benefited from a product mix tailored to both tourists and daily users. Europe (+34%) enjoyed the impact of new flagship stores, which boosted brand recognition and expansion in underpenetrated cities like Glasgow, Birmingham, Munich, and Frankfurt. North America (+30%) maintained strong sales without heavy price cuts, helping absorb tariff costs while protecting profit margins.
In light of its strong first-quarter results, Fast Retailing raised its full-year FY26 forecasts: projected revenue is now JPY 3,800 billion (up from JPY 3,750 billion), while net profit is forecast at JPY 450 billion (previously JPY 435 billion). Management emphasized that this upgrade primarily reflects the outperformance in the first quarter, with caution remaining over potential risks from unusually warm weather in Japan and China, which could pressure seasonal product sales and increase markdowns.
Notably, executive commentary has turned more optimistic, particularly regarding China, suggesting that earlier structural reforms are finally yielding tangible gains. The next challenge, management says, will be to further enhance operational and supply chain quality to support rapid expansion in Europe and North America, mitigate stock risks, and improve customer experience—signaling increased mid-term confidence in its business structure.
