Key facts
- Uniqlo's parent company, Fast Retailing, saw its Greater China segment achieve 510.5 billion yen (US$3.1 billion) in sales for the nine months through May.
- This segment contributed 19.5 percent of Fast Retailing's worldwide turnover.
- Uniqlo reported increased revenue and double-digit profit growth in mainland China for the three months ending in May.
- Comparable-store sales increased, driven by promotional efforts and demand for seasonal goods.
- China's overall retail sales declined 0.6 percent year over year in May.
Fast Retailing, the parent company of Japanese clothing retailer Uniqlo, has reported a rebound in sales and profits in mainland China, defying ongoing political tensions between Beijing and Tokyo and soft consumer sentiment. The company's Greater China segment, which includes mainland China, Hong Kong, and Taiwan, posted 510.5 billion yen (US$3.1 billion) in sales for the nine months through May, contributing 19.5 percent of the group's worldwide turnover.
Uniqlo achieved increased revenue and double-digit profit growth in mainland China during the three months ending in May. This success was supported by stronger promotional efforts and robust demand for warm-weather merchandise, with items such as easy pants, UV-protective apparel, and T-shirts performing well. However, China's overall retail sales saw a 0.6 percent year-over-year decline in May, according to the National Bureau of Statistics.
Bilateral tensions between Japan and China have persisted, with Chinese authorities advising against travel to Japan in November following remarks by Japanese Prime Minister Sanae Takaichi on Taiwan, which angered Beijing. Numerous flights between the two nations have been canceled since then.