Uniqlo sees profits soar in China despite Beijing-Tokyo tensions
Fast Retailing, the parent company of Japanese clothing retailer Uniqlo, has defied the ongoing political tensions between Beijing and Tokyo and soft consumer sentiment in China to log a rebound in sales and profits on the Chinese mainland. The Japanese firm said the 2026 financial year, which ended in August, had been a period in which its mainland China business had “made steady progress, with…
Fast Retailing, the parent company of Japanese clothing retailer Uniqlo, has experienced a surge in profits and sales on the Chinese mainland despite political tensions between Beijing and Tokyo. In its 2026 financial year, which concluded in August, the company's mainland China operations demonstrated steady growth, signaling a return to profitability, according to the annual report released on Thursday.
Full-year revenue on the Chinese mainland increased by 3% year on year in local currency terms, while profits rose by approximately 18%. Hong Kong and Taiwan also saw growth in revenue and profit during the period. The improved performance was attributed to ongoing structural reforms, including a revamped store network with a focus on strategic site selection and enhanced operational efficiency.
Uniqlo expanded large-format stores while closing underperforming outlets. The Greater China region, comprising mainland China, Hong Kong, and Taiwan, is the company's second-largest market globally, trailing only Japan. The region's total sales rose to 724 billion Japanese yen (US$4.6 billion) year on year, with profit climbing to 112 billion Japanese yen, an increase of 24.6%.
Fast Retailing's Hong Kong-listed shares have climbed 34% this year, closing at HK$37.30 on Thursday morning, up 0.81% from the previous day. Trading of its Hong Kong depositary receipts on the Hong Kong stock exchange was suspended at the company's request and will resume on Friday. Despite the political tensions, the market reacted positively to Uniqlo's strong performance.
Beijing had issued a travel advisory in November, advising citizens to avoid traveling to Japan due to the possibility of Tokyo intervening in a conflict in the Taiwan Strait. This advisory led to a surge in flight cancellations between the two countries, a drop in Chinese tourism to Japan, and Japan falling out of the top 10 most popular travel destinations in China over the National Day holiday, according to Chinese online travel agency Tuniu Corp.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
