- Uniqlo sales rose by 4.4% in May.
- The number of customers decreased by 3.7%.
- However, the average purchase per customer increased by 8.4%.
- The increase in sales was attributed to strong demand for summer items and trendy products.
- Analysts have given Fast Retailing 8 buys, 7 holds, and 1 sell ratings.
Fast Retailing on Smartkarma
Smartkarma, an independent investment research network, has seen multiple analysts publish research on “Fast Retailing“, a Japanese apparel company. Michael Causton, in his report titled “Fast Retailing: Great Fundamentals for Uniqlo, Shame About the Share Price“, suggests that although the company’s goal of ¥10 trillion in sales in 10 years is unlikely, consistent expansion in markets like SE Asia, Europe and the US is a certainty. Travis Lundy, in his report titled “The Fast Retailing (9983) Selldown Conundrum – Not Now, But Soon… Then For A Long Time” believes that the stock is not cheap but is under-owned, and revenues up 20% year-over-year is a very good look. Lastly, Oshadhi Kumarasiri, in his report titled “Fast Retailing: Inflated Earnings Expectations & Stretched Multiples, A Cause for Concern” argues that apparel demand in China was lower than expected and risks are skewed to the downside.
A look at Fast Retailing Smart Scores
Fast Retailing Co., Ltd., a Japanese clothing store chain, is expecting a long-term outlook of growth and momentum. According to the Smartkarma Smart Scores, the company scored a 4 in growth, a 5 in momentum, and a 3 in resilience, which suggests that the company is well-positioned to withstand any potential external impacts and to continue to grow. The company also boasts a strong market presence with its UNIQLO stores in Japan and other markets overseas, including the UK, China, Hong Kong, South Korea, US, France, Singapore and Russia.
The company’s value and dividend scores were lower, with a 2 for value and a 1 for dividend. This suggests that while Fast Retailing is a solid investment, it may not be the most profitable option for investors in the long-term. However, with the strong scores in growth, resilience and momentum, the company is well-positioned to continue to expand and grow in the years to come.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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