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Uniqlo outperforms Gucci, other luxury brands in overall revenue for first time

Published: 13 Oct. 2025, 16:05

Tadashi Yanai, chairman and chief executive officer of Fast Retailing Co., operator of Japan's Uniqlo clothing outlets, attends a news conference to mark the unveiling of the company's new headquarters building in Tokyo, Japan March 16, 2017. [REUTERS/YONHAP]

While global appetite for luxury goods has waned, affordable apparel brands emphasizing value for money are thriving — with Japan’s Fast Retailing, the parent company of Uniqlo, surpassing the corporate owner of Gucci and Bottega Veneta in annual revenue for the first time.

Fast Retailing posted record-breaking revenue of 3.4 trillion yen ($22.3 billion) for the fiscal year from September 2024 to September 2025, and was up 9.6 percent from the same months between 2023 and 2024, according to the Yomiuri Shimbun. Operating profit also reached an all-time high of 551.1 billion yen.

The company reported strong performance both at home and abroad. For the first time, Uniqlo’s domestic revenue in Japan exceeded 1 trillion yen, while overseas stores — including in North America, Europe, Southeast Asia and Korea — saw significant growth.

North American revenue alone rose 24.5 percent, and the number of stores in the region increased by more than 20 percent. Fast Retailing said it offset higher tariffs in the United States through price adjustments and cost-cutting measures.

The company projects that earnings will continue to break records into the next fiscal year. “It feels like we’re on the brink of a global boom,” said Chairman Tadashi Yanai.

With these results, Fast Retailing outpaced Kering, the French luxury conglomerate behind Gucci, Bottega Veneta, Saint Laurent and Balenciaga, whose 2024 sales stood at 17.2 billion euros.

The logo of fashion house Gucci is seen outside a shop in Milan, Italy, on April 8, 2024. [REUTERS/YONHAP]

Kering's performance was hampered by a steep decline at Gucci, which typically accounts for around half the group’s revenue. Sales at Gucci dropped more than 20 percent year-on-year to approximately 7.7 billion euros.

Analysts say the rise of specialty store retailers of private label apparel brands like Uniqlo reflects a growing demand for affordability amid broad economic uncertainty. “Across countries, the economic downturn is prompting consumers to favor high-quality, reasonably priced brands,” one industry observer noted.

Luxury houses, meanwhile, face structural limitations when it comes to adjusting pricing. “Cutting prices risks damaging brand image,” the source added.

Chinese consumers — who historically account for 30 percent of global luxury spending — are also tightening their wallets, raising concerns that sluggish sales in the luxury sector could persist.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM CHUL-WOONG [[email protected]]