The operator of apparel retailer Uniqlo reported record third-quarter profit on Thursday and raised its full-year forecast as its business in China continued to recover from a pandemic slowdown.
Fast Retailing, known for its fleece jackets and inexpensive basics, has 925 Uniqlo outlets in mainland China — more than in Japan — making it a bellwether for a retail market that was hammered by tough COVID-19 restrictions in recent years.
The results pointed to a powerful return to form in China, the biggest overseas Uniqlo segment by far, but also a challenging market at home, where the yen's depreciation is eating into margins and consumers are highly resistant to price increases.