Company Reports

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. This brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International is the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Fast Retailing's EBIT rose 46% year on year in the third quarter ended May. For fiscal 2026, the company raised EBIT guidance again by 4.3% to JPY 730 billion, implying 29% year-on-year growth. Management targets to improve core EBIT margin to 20% in North America and Europe over time.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. This brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International is the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. This brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International is the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Reflecting strong performance since September, partly offset by the impact of the Iran war, Fast Retailing raised its fiscal 2026 revenue and EBIT guidance by 3% and 8%, respectively. The firm now projects a more specific "double-digit" profit growth for Uniqlo Greater China this year.

To reflect its strong first-quarter performance, Fast Retailing raised guidance for revenue by 1% and EBIT by 7% for fiscal 2026 ending August. It expects Uniqlo Greater China to register revenue and profit growth for the year after delivering double-digit profit growth in the first quarter.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. This brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International is the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Fast Retailing's fiscal 2025 (ended August) revenue rose 10%, in line with guidance, while core operating profit increased 14%, 4% higher than guidance. Management forecast 10% and 8% increases in revenue and operating profit, respectively, for fiscal 2026.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 55% of Fast Retailing’s EBIT in the first half of fiscal 2025.

Uniqlo Japan's revenue and operating profit rose 9.7% and 4.7% year on year, respectively, in the third quarter ended May 2025. Fast Retailing expects Uniqlo Greater China revenue and profit to decline around 10% in fiscal 2025 in Chinese yuan terms, without specifying which profit line.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 60% of Fast Retailing’s EBIT in fiscal 2023.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 60% of Fast Retailing’s EBIT in fiscal 2023.

Fast Retailing maintained its fiscal 2025 (ending August) revenue guidance while raising its operating profit guidance by 28%, after factoring in flat JPY/USD and JPY/CNY exchange rates compared with fiscal 2024 and lower operating profit in the US based on the US tariffs announced on April 2.

Fast Retailing kept its fiscal year 2025 guidance unchanged as worse-than-expected performance in Uniqlo Greater China (1% year-on-year revenue decline) and GU (3% decline) for the first quarter ended November 2024 was offset by stronger-than-expected results at Uniqlo Japan (9% rise).

Wide-moat Fast Retailing reported fiscal year 2024 (ended August 2024) revenue and operating income that were 1% and 7% higher than our estimates, respectively. We commend the company for achieving stronger profitability in the second half versus the first half, bucking the historical trend of sequentially lower profitability in the second half, which was achieved by stocking sufficient inventory. We raised our operating income estimate for the fiscal year 2025 by 4% and for both fiscal years 2026 and 2027 by 3% due to stronger projected performance in Uniqlo Japan, North America, and Europe, and revised up our fair value estimate by 12% to JPY 50,700 per share. We believe the shares are fairly valued.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 60% of Fast Retailing’s EBIT in fiscal 2023.

Wide-moat Fast Retailing reported revenue and operating income up 14% and 31% year over year, respectively, for the quarter ended May, tracking ahead of our estimates. We increased our revenue forecast by 2% and operating income by 4% for fiscal 2024 (ending August 2024). This leads to a fair value estimate increase of 1% to JPY 45,400 per share. The shares are fairly valued. Strong results were driven by the operations in North America, Europe, Southeast Asia, and Japan, but mainland China revenue and profit contracted in local currency terms in the quarter. We expect to see revenue growth in fiscal 2025 in CNY terms, however, as management adopts a new strategy. If the Japanese yen appreciates in the near term due to a narrowing interest-rate differential between Japan and overseas, we could see pressure on Fast Retailing’s revenue, with the financial impact offset by a lower cost of sales for overseas production.

Uniqlo, the dailywear brand known for its product quality and functional materials at affordable prices, is Fast Retailing’s core business. Uniqlo’s brand concept embraces global consumers of a wide age range, enabling economies of scale and strategic partnerships with leading textile suppliers. Uniqlo International was the largest segment, representing 60% of Fast Retailing’s EBIT in fiscal 2023.

We initiate wide-moat Fast Retailing with a fair value estimate of JPY 44,900 per share, which translates to a fiscal 2025 P/E of 39 times. Our weighted average cost of capital is 6.1%. We think the shares are fairly valued.