Fast Retailing Co Ltd, the owner of clothing retailer Uniqlo, saw its profits jump 16% in the first six months of its financial year leading the company to lift full-year guidance.
The Japanese company cited recovery in China and healthy sales in North America and Europe as key driving forces for growth.
Uniqlo, which has around 900 stores across China, noted that the country suffered a dip in revenue and profits in its first half.
This was heavily impacted by the tight restrictions the Chinese government put in place to combat Covid – which did not begin being lifted until late 2022.
“Sales did start to recover in January, resulting in a slight decline in second-quarter revenue and a sharp increase in second-quarter profit, so overall performance is now on a recovery track,” Fast Retailing said in its latest report.
This falls in line with reports today that luxury brand LVMH saw sales in China rocket by close to 20%.
Back in Japan, the retailer's underlying earnings slipped by close to 2%, despite revenues climbing, caused mainly by the yen losing value.
Fast Retailing grabbed headlines in Japan earlier this year when it announced a 40% wage increase for staff.
The decision came after the company felt the low salaries would pose a risk to securing younger people as workers.
Shares in the retailer shot up 2% on Thursday after opening at just under 3,000¥ (£1 = 165.73 Japanese Yen)