The Japanese fashion group said it expected a further rise of more than 15% in revenues in the current fiscal year to August 2023. But it said in a statement that the “business environment continues to be severe in light of progressive inflation and the rapid depreciation of the yen” and said net income would fall.

Fast Retailing said net income for the 12 months ended August rose 60.9 % to a record high of ¥273.3 billion, after annual sales rose 7.9% to ¥2.3 trillion. Group operating profit increased 19.4% year on year to ¥297.3 billion.

However, greater China, which accounts for about half of the revenue from sales for Uniqlo business outside Japan, remained sluggish, with what Fast said was a “significant contraction in profit”, albeit with a recovery in the fourth quarter, due to the lingering effects of Covid restrictions in China.

Fast Retailing expects net profit for the current fiscal year, ending next August, to fall by almost 16% year on year to ¥230 billion (US$1.57 billion), taking into account foreign exchange effects.

Uniqlo has already raised the prices of fleece, down jackets and other autumn and winter products in Japan in response to rising material prices and logistics costs.