Fast Retailing's Long-Term Factory Ties Fuel Record $10.5 Billion Revenue

Quick Facts

Fast Retailing reported first-half 2026 revenue exceeding $10.5 billion, a nearly 15% year-over-year increase, with profitability up nearly 30%.
Between 60% and 80% of the company’s partner factories have worked with Fast Retailing for more than 10 years, with some relationships exceeding 40 years.
The company cut Scope 1 and 2 emissions by 90.3% by 2025, five years ahead of schedule, and has raised its supply chain emissions reduction target to 30% by 2030.

Fast Retailing, the Japanese parent company of Uniqlo, is posting the best financial results in its history. First-half 2026 revenue exceeded $10.5 billion, up nearly 15% year over year. Profitability rose nearly 30% on strong global demand.

For the full fiscal year 2026, the company has revised its consolidated forecast upward to 3.9 trillion yen in revenue, representing 14.7% growth. Consolidated business profit is now projected at 690 billion yen, up 25.2%.

The numbers build on a record FY2025. Full-year revenue reached 3.4 trillion yen, up 9.6%. Uniqlo Japan crossed 1 trillion yen in revenue for the first time. North America was the fastest-growing segment, with revenue up 24.5% and business profit up 35.1%.

The Factory Model Behind the Numbers

Fast Retailing executive Kazumi Yanai, son of founder and president Tadashi Yanai, says the company’s supplier strategy is central to its performance. “Around 30-40% of the factories we work with have been with us for 10-20 years,” he said. “Another 30-40% for over 30 years, and a few for over 40 years.”

That stability shapes how the company plans production. Fast Retailing holds annual meetings with each partner factory to review performance, set sustainability goals, and forecast production needs for the next 12 months. Teams are also on-site daily.

“This enables us to reduce inefficiencies, or in other words, waste,” Yanai said. “By doing this, we can make just the right amount at the right time.”

The company operates under an SPA model, which stands for Specialty store retailer of Private label Apparel. That structure gives Fast Retailing direct control over planning, design, procurement, and sales, reinforcing the value of tight supplier coordination.

What Factories Actually Want

Industry data supports the approach. Kaley Roshitsh, editorial director at Cascale, a global supply chain nonprofit, said supplier surveys consistently point to one priority. “The No. 1 thing they want is commercial predictability,” she said. “That comes from long-term relationships where you know what order volume is coming.”

Lee Green, VP of marketing and communications at Cascale, put it plainly: “Suppliers invest when they believe they’ve got a future.”

That investment has shown up in Fast Retailing’s sustainability numbers. Yanai said long-term relationships made energy transitions possible. “Thinking long-term instead of jumping between partners has made a huge impact in switching from coal to natural gas, for example, because they know what’s coming,” he said.

Emissions Progress and New Targets

Fast Retailing reduced its Scope 1 and 2 emissions by 90.3% by 2025, five years ahead of the original schedule. Renewable energy now powers 93.5% of its stores and offices, up from 84.7% in 2024.

In November 2025, the company raised its supply chain emissions reduction target to 30% against a 2019 baseline, up from the prior 20% goal. The Science Based Targets initiative has approved that new target as science-based.

Seneiya Navajas, director of sustainability for Fast Retailing in North America, said the company’s new goal is 100% renewable energy in stores and offices by 2030.

On the materials side, less-polluting raw materials now account for 19.4% of the total mix. Recycled polyester from PET bottles makes up 46.4% of all polyester used, up from 41.5% a year ago.

Moving Upstream

Fast Retailing is also extending supply chain oversight beyond garment factories. The company completed auditing of cotton spinning mills in 2023 and has since pushed traceability efforts into cashmere supply chains. A pilot wool program in Australia is designed to track materials from farm level through finished garment production.

The moves signal that Fast Retailing views supply chain depth, not just supplier count, as a long-term growth driver. As the company pushes toward 4 trillion yen in annual revenue, the factory relationships built over decades are the infrastructure making that possible.