Fast Retailing may be looking to acquire a larger rival in the US or Europe on the back of the strong yen, which has boosted the company's purchasing power, according to reports.

"The yen strength and anaemic stock markets make this a very good opportunity for M&A" Fast Retailing CEO Tadashi Yanai told Bloomberg. "It won't be something small, but a company of equal size or bigger."

He said that if there is a chance to do M&A in the future, "we're thinking of doing it".

Yanai also said that the company, which owns the Uniqlo, Comptoir des Cotonniers, Princesse Tam Tam and Theory brands, might look to list abroad as "the Japanese equity market lacks growth", perhaps in the US, Hong Kong or Singapore.

In September, the retailer announced aggressive growth ambitions, planing to become the world's leading manufacturer and retailer by 2020 by opening some 200-300 Uniqlo outlets a year.