GU’s profits have jumped 75 per cent compared to last year. Fast Retailing, based in Japan, runs the better known Uniqlo. GU, an experimental and stylish brand, is Fast Retailing’s second clothing line. This brand sells at lower prices and is aimed at younger customers. GU's projected growth offers a diversified stream of revenue for the Japanese retail giant at a time when the fast fashion industry is struggling. Many teen brands have gone bust after failing to keep up with the shopping habits of younger consumers. Fashion franchises are struggling globally amid changing shopping habits and competition from e-commerce. In this past fiscal year, GU whittled down the number of items and started focusing on mass trends. Items such as oversized tees and marshmallow pumps have done particularly well in the past year.

GU’s success is built on Fast Retailing’s existing strengths, like its expansive supply network and scale. While GU has mostly focused on domestic growth, it’s opened a handful of stores around Asia in cities like Taiwan and Hong Kong. Fast Retailing has managed to turn around a second clothing line into a profit driver. GU accounts for about a tenth of the group’s operating profit.