arking a fifth-straight year of record profit. Regional performance  Revenue at home in Japan surpassed 1 trillion yen for the first time, lifted by strong tourist spending and resilient domestic demand. Same-store sales rose 8.1 per cent, supported by strong demand for weather-sensitive staples such as sweatshirts, outerwear, jeans and new silhouettes that refreshed core products. Sales in Greater China softened by 4 per cent amid subdued consumer demand. For years, China was Uniqlo’s growth engine, with nearly 900 stores across the mainland. But when Covid-19 restrictions disrupted operations and consumer spending failed to recover as expected, the company began rethinking its geographical focus. Other markets, including Southeast Asia, India, Australia, Europe and North America, posted double-digit growth.  Sales in North America rose 24.5 per cent to 271.1 billion yen, while operating profit jumped 35.1 per cent to 44.2 billion yen. Despite the headwinds of additional US import tariffs, Uniqlo managed to improve its profit margins through tighter cost control and pricing discipline. Earlier this month, the company announced that it will be expanding its US retail presence next year with flagship openings in Chicago and San Francisco, as well as four additional locations in New York City. Uniqlo will open 11 new stores this coming spring/summer season across the US, bringing the brand’s total US store count to 89 and marking a new chapter for the clothing giant. It follows management’s plan to add between 20 and 30 locations per year in North America toward a 200-store target by 2027.  A similar story is unfolding across Europe, where Uniqlo reported a 33.6 per cent jump in revenue to 369.5 billion yen and a 23.7 per cent rise in operating profit to ¥54.2 billion in FY2025. Fast Retailing has indicated that it plans to continue expanding across the continent in 2026, targeting both established fashion capitals and emerging cities where mid-range premium retail is underrepresented. From basics to design-driven growth  While Uniqlo built its name on minimalist staples and fabric innovation, its partnerships with leading designers and artists have become one of the key pillars of its brand evolution. In recent years, collaborations with JW Anderson, Clare Waight Keller, and contemporary artist Kaws have helped Uniqlo strike a rare balance between mass accessibility and creative distinction. “Uniqlo is just so consistent. It doesn’t massively chase trends but builds brilliant uniforms that look more expensive than they actually are,” Mathew Dixon, partner at DHR Global, told Inside Retail.  “As luxury brands become increasingly inaccessible, they spotted the opportunity for high-street brands to improve on quality and design to reach customers looking for value rather than status. This applies to their collaboration, which are multi-season deals and allow the partnership to breathe and grow.” What sets Uniqlo’s approach apart is its long-term view. Rather than relying on short-lived hype, the company nurtures enduring partnerships that evolve over multiple seasons. Its collaboration with JW Anderson, now in its seventh year, has matured into a line that blends the designer’s British sensibility with Uniqlo’s everyday functionality. Each collection borrows subtle motifs from Anderson’s mainline: fisherman knits, utilitarian pockets, collegiate stripes and JWA’s subtle logo.  “The economies of scale enjoyed by Uniqlo mean fabric quality and attention to detail exceed the price point,” Dixon added.   “Their denim has always been good, but why wouldn’t a customer want a pair that is brilliantly cut and has the JWA logo on the back pocket? It’s no wonder they are consumed by them in every color and wash.”  The biggest shift in Uniqlo’s creative direction came in 2023, when Clare Waight Keller, formerly of Chloé and Givenchy, joined as the brand’s first-ever creative director for Women’s. Her Uniqlo: C line introduced refined silhouettes and elevated textures that expanded Uniqlo’s appeal among female consumers. After over a year with Uniqlo: C, Keller was named Uniqlo’s creative director, leading the retailer’s mainline collection.  “Bringing in Clare Waight Keller as creative director was a masterstroke,” Dixon said. “Her eye means the product in store now has so many tiny details and points of difference that set it apart.  “This is especially evident across the full range of sizing. For example, she knows how to make a larger size fit in a flattering way, rather than just grading up the block to make a customer look brilliant and feel good about themselves.” Beyond fashion designers, Uniqlo’s collaborations increasingly touch on art, culture and community to extend its reach.  Its partnerships with Kaws, Disney and most recently Pop Mart’s “The Monsters” series have attracted loyal fan communities. Meanwhile, its decade-long partnership with New York’s Museum of Modern Art (MoMA) continues to deepen. “The Uniqlo collaboration strategy has tapped into how people are dressing both high and low,” Dixon explained.  “Luxury is unaffordable to most consumers, so they offer really clean, well-made, great value pieces that give a hint of the designer aesthetic, which consumers match with a luxury item or bag to look chic and modern.  “As a Japanese company, Uniqlo’s attention to detail is phenomenal. It’s cultural and expected. They do basics and core items incredibly well, and much of this comes from their fabric technology. They invest more than any other mass retailer in perfecting yarn and cloth to get the right handle, performance and color. “This obsession with detail means even a white T-shirt can feel special. Add in a clever detail from a collaboration and you have a winner.” Further reading: How Uniqlo’s minimalist styles make it recession-proof.