Uniqlo operator reports record half-year profit despite China slowdown

Uniqlo operator reports record half-year profit despite China slowdown
© Reuters. FILE PHOTO: People wearing face masks walk past a store of Fast Retailing’s fashion chain Uniqlo in Beijing, China May 22, 2020. REUTERS/Tingshu Wang

TOKYO (Reuters) -Clothing brand Uniqlo’s Japanese owner reported a record half-year profit on Thursday, even as COVID-19 lockdowns in China hampered sales in its biggest overseas market.

Fast Retailing Co said operating profit climbed 18% to 189 billion yen ($1.51 billion) in the six months through February from a year earlier.

The results were buoyed by sales growth in North America, Europe, and other parts of Asia, while revenue and profit declined in China.

Fast Retailing is a bellwether for how major global retailers are being impacted by COVID-related shutdowns in China, one of the biggest growth markets for many Western brands.

The retailer said it expects revenue declines and a large drop in profits in its Greater China segment in the second half and for the whole of fiscal 2022.

The company maintained its full-year profit forecast at 270 billion yen. That compares with a consensus forecast for annual profit to total 278 billion yen, according to a Refinitiv poll of 11 analysts.

($1 = 125.4300 yen)

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