Fast Retailing, the parent company of UNIQLO, achieved its highest-ever revenue and profit in fiscal 2025. For the first time, domestic sales surpassed one trillion yen, driven by climate-responsive product strategies and rising purchases from inbound tourists.
UNIQLO’s Domestic Sales Surpass One Trillion Yen
UNIQLO Japan achieved 1.026 trillion yen in sales, a 10.1% year-on-year increase, marking its first-ever trillion-yen milestone. Despite Japan’s mature retail market and slow consumption trends, the company’s agile management and data-driven product strategy led to historic success.
In 2025, Japan experienced record-breaking heat, which drove demand for AIRism, the lightweight, breathable fabric line that became a staple among consumers.
The company also implemented real-time data analytics to optimize inventory across regions, reducing shortages and overstock simultaneously. By enhancing both online and in-store integration through its omnichannel strategy, UNIQLO improved convenience for customers while increasing overall efficiency.
Breakdown of Domestic UNIQLO Sales
| Category | Sales | Share |
|---|---|---|
| Casual wear | ¥420 billion | 41.5% |
| Business & formal wear | ¥260 billion | 25.8% |
| Sports & functional wear | ¥180 billion | 17.5% |
| Kids & baby wear | ¥90 billion | 8.7% |
| Accessories & others | ¥76 billion | 6.5% |
This table highlights UNIQLO’s position as a comprehensive lifestyle brand appealing to a wide range of consumers. Its commitment to combining functionality and design has fostered strong customer loyalty and a high repeat purchase rate.
Key Drivers of Domestic Success: Climate Adaptation and Tourism Demand
Adapting to Climate Change
UNIQLO’s responsiveness to climate conditions has become a core competitive advantage. Its ability to adapt products to shifting weather patterns has turned climate variability into a business opportunity. Breathable, moisture-wicking, and quick-drying fabrics have been major growth drivers, while early launches of HEATTECH apparel during mild autumns helped sustain year-round demand.
Boost from Inbound Tourists
Japan’s inbound tourism boom also fueled UNIQLO’s sales. A weakened yen made shopping in Japan more affordable, attracting visitors from Asia, North America, and Europe. Flagship stores in Ginza, Shinjuku, and Osaka’s Shinsaibashi saw strong sales, aided by multilingual staff and seamless tax-free systems. The company’s focus on hospitality for international shoppers strengthened its reputation as a global, customer-friendly brand.
Inbound Shopper Trends
| Country/Region | Average Spend | Popular Items | Main Purchase Motivation |
|---|---|---|---|
| China | ¥27,000 | AIRism, HEATTECH | Quality and reliability |
| South Korea | ¥21,000 | Smart pants, shirts | Style and affordability |
| United States | ¥35,000 | Ultra Light Down | Functionality |
| Southeast Asia | ¥18,000 | Casual wear | Price and design balance |
These figures demonstrate UNIQLO’s evolution into a global everyday apparel brand, valued for quality and practicality rather than luxury.
Mixed Results Abroad: Challenges in China
Struggles in the Chinese Market
In China, economic slowdown and cautious consumer behavior resulted in declines in both revenue and profit. Competition intensified as local and global brands competed on price and value perception. In response, UNIQLO is strengthening localized product designs and digital marketing, while promoting sustainable materials to restore brand momentum.
Steady Growth in Asia and Western Markets
In contrast, UNIQLO continues to grow in Southeast Asia and Western markets. In Thailand and Indonesia, an expanding middle class favors affordable, high-quality basics. In Europe and North America, sustainability-oriented product lines such as recycled-fiber apparel have boosted the brand’s image and sales performance.
Regional Sales Overview
| Region | Sales (Billion Yen) | YoY Growth | Key Factors |
|---|---|---|---|
| Japan | 10,260 | +10.1% | Climate strategy, inbound demand |
| China | 8,400 | -4.8% | Slow consumption |
| Southeast Asia | 5,900 | +7.6% | Expanding middle class |
| Europe & North America | 7,300 | +6.9% | Demand for sustainable products |
This data reflects regional variation, yet underscores UNIQLO’s global stability and brand resilience.
Outlook: Global Expansion and Sustainability
Fifth Consecutive Year of Growth Expected
Fast Retailing forecasts its fifth straight year of revenue and profit growth. The company is refining its integration of online and offline channels, ensuring a consistent customer experience worldwide. AI-based demand forecasting and supply chain optimization are key to reducing waste and maximizing efficiency across markets.
Advancing Sustainable Management
UNIQLO’s corporate philosophy — “Changing clothes, changing conventional wisdom, changing the world” — guides its sustainability initiatives. The company is expanding its use of recycled polyester and organic cotton, transitioning stores and logistics centers to renewable energy, and strengthening its RE.UNIQLO circular program, which reuses collected clothing as raw material.
Progress in Environmental and Social Initiatives
| Initiative | Current Result | Target Year | Progress |
|---|---|---|---|
| Recycled material usage | 38% | 2030 | Ongoing |
| CO₂ emissions reduction | 24% decrease | 2030 | On track |
| Renewable energy in stores | 60% | 2028 | Ahead of target |
| Clothing recycling volume | 12 million items/year | Continuous | Stable growth |
These achievements highlight UNIQLO’s balance between economic growth and environmental responsibility — a model for sustainable global retail.
Conclusion
UNIQLO’s breakthrough of one trillion yen in domestic sales marks not only a financial achievement but also a symbol of transformation in Japan’s apparel industry. Its climate-adaptive product development, data-driven management, and focus on long-term social value have created a powerful synergy. Inbound demand and sustainability initiatives have reinforced its position as a brand built on trust, innovation, and purpose.
The key challenges ahead lie in revitalizing the Chinese market and navigating global economic uncertainties. Yet, Fast Retailing’s mission remains unwavering — to deliver “good clothing that improves everyday life” for people worldwide. By aligning profitability with social progress, UNIQLO continues to evolve as a global leader redefining how fashion and responsibility coexist.
