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Uniqlo owner Fast Retailing Co.’s earnings in three months to the end of November dropped 2 percent to $889.82 million due to weak sales in its home market in Japan and continuing Covid-19 restrictions in China.
Warmer weather in Japan in November stifled sales of fall and winter wear, while Covid curbs in China resulted in a temporary closure of 247 stores in Beijing and Guangzhou.
However, Fast Retailing Co.’s growth in North America and Europe compensated for a slump in China to record profit last fiscal year.
The company’s full-year operating profit is forecast at $2.7 billion.
Fast Retailing Company, which operates more than 3500 clothing stores worldwide and is Japan’s biggest retailer, recently announced that it would lift its employees’ wages by as much as 40 percent.
The company has almost 900 Uniqlo stores in China, more than in Japan.
