Uniqlo Claims Profit Loss Due to China COVID-19 Outbreak

Fast Retailing Japanese owner of clothing brand Uniqlo said on Thursday that its China operation will report an enormous profit decline this year due to COVID-19 restrictions in China.

Fast Retailing Co. is said to be a leading indicator of how COVID-19-related shutdowns in China impact major global retailers.

China is Fast Retailing’s biggest foreign market, with 863 stores on the mainland and almost 90 outlets in Shanghai, where stringent lockdown measures remain in place to contain the country’s worst COVID-19 outbreak.

The sales of Uniqlo declined in the Greater China region, including Hong Kong and Taiwan, as almost 133 stores were temporarily shut.

Fast Retailing said it expects revenue downfalls and a significant drop in profit in its Greater China segment in 2022 due to COVID-19 restrictions.

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