Shares in Uniqlo-owner Fast Retailing approached an all-time high on Friday after the company penned record operating profit for a second year running.
Fast Retailing said operating profit came in at 381 billion yen (£2.08 billion) for the year to August 2023, up 28% on 2022, as demand in China continues to recover.
Shares jumped 5.75% to 35,690 yen as a result, sitting just off all-time highs recorded in June.
According to the retailer, shopping habits have changed in the wake of the Covid-19 pandemic, with many now placing value above luxury.
“People are looking to reduce surplus things and frills and live simply in their own way,” chief executive Tadashi Yanai commented.
Fast Retailing laid out plans to open new stores in North America and Europe in response, though targets for annual openings in Greater China were reduced from 100 to 80.
It already operates some 930 Uniqlo outlets in mainland China, alongside 70 stores in the US and Europe.