Fast Retailing posts record profit, Yanai eyes ¥10 trillion sales
The move
Fast Retailing, the Uniqlo owner controlled by Tadashi Yanai, reported record results on October 8 for the year ended August: sales up 16.6% to ¥3.96 trillion, operating profit up 31.7% to ¥743.1 billion, and net profit up 25.3% to ¥542.5 billion.
Why it matters
Yanai said the company's long-standing goal of ¥10 trillion in sales is "now within sight," pointing to Southeast Asia, India and Australia as the next growth markets, and said the budget label GU could eventually outsell Uniqlo itself.
The bear case
Fast-fashion margins are exposed to currency swings and input costs, and much of the growth still depends on Japan and China rather than the new markets Yanai is touting.
What to watch
Progress toward the ¥10 trillion sales target and GU's expansion.