Uniqlo closing in on H&M with sights set on Zara’s global crown

Uniqlo owner Fast Retailing’s annual revenue climbed 17% to a record ¥3.96 trillion ($25 billion), putting it solidly on a path to pull ahead of H&M as the world’s No. 2 apparel retailer and challenge Zara for the top spot.

The sales milestone underscores Fast Retailing’s ascent among global high-street fashion retailers, with sales set to surpass Hennes & Mauritz, which is projected by analysts to post sales of 222.7 billion kronor ($22.3 billion) for its fiscal year through November, while narrowing the gap with Zara owner Industria de Diseno Textil.

The latest results show how far Uniqlo has come from its origins as a low-price Japanese casual-wear chain to become an international brand built around functional all-season apparel, as it pushes deeper into North America and Europe. Even so, Fast Retailing founder and Chief Executive Officer Tadashi Yanai still needs to more than double annual sales to reach his long-term target and build the global apparel powerhouse he has long envisioned.