Uniqlo Owner Fast Retailing Poised to Overtake H&M in Apparel Sales

Fast Retailing Co., the Japanese operator of Uniqlo, is poised to overtake Sweden’s H&M in annual sales as it expands internationally and strengthens its position in functional, everyday clothing.

Fast Retailing, the owner of Uniqlo, reported record annual sales as its international expansion and functional clothing lines drive growth. [Photo: Real Estate Japan, Wikimedia Commons]

Fast Retailing reported record revenue of ¥3.9633 trillion ($25 billion) for the fiscal year ended August 31, 2026, an increase of 16.6% from the previous year. The company announced its results recently.

H&M Group reported sales of approximately 228.2 billion Swedish kronor for the year ended November 2025, equivalent to roughly ¥3.6 trillion at the exchange rates cited in Japanese reporting.

The comparison suggests Fast Retailing could move ahead of H&M in annual revenue, although the companies’ reporting periods do not align exactly.

Inditex, the Spanish fashion group that owns Zara, remains the global leader by sales. It reported revenue of approximately €39.9 billion for the fiscal year ended January 2026.

Fast Retailing founder and Chief Executive Tadashi Yanai has long said he wants to make the company the world’s largest apparel retailer.

Speaking after the latest results, Yanai reaffirmed his determination to achieve that ambition.

Yanai transformed his father’s tailoring and menswear business in Ube, Yamaguchi Prefecture, into a global clothing group. Analysts have credited the company’s growth to its emphasis on value, product development and a streamlined supply chain.

Uniqlo’s LifeWear concept focuses on practical, versatile everyday clothing.

Its product lines include HeatTech thermal garments and Airism innerwear, which are marketed for their functional fabric technologies.

The company also emphasizes minimalist design and coordination across sourcing, product development, manufacturing and retail.

Its international expansion has been an important driver of growth, with overseas markets playing an increasingly prominent role in the business.

Fast Retailing’s latest results strengthen its position among the world’s largest apparel retailers. Whether it can ultimately surpass Inditex will depend on its ability to sustain growth, manage costs and maintain consumer demand across markets.