Fast Retailing "Tour of North American business and meeting with local..."

Research evidence excerpt

Fast Retailing "Tour of North American business and meeting with local..."

earnings growth has been the 08/28E 2,076.2 1,990.4

leadership of Daisuke Tsukagoshi, Yoshihide Shindo, and Alex Goldelman.

Takahiro Kazahaya

AnalystAchievements of the local management team

takahiro.kazahaya@ubs.com

During the meeting, local management highlighted four key drivers of the recovery in +81-3-5208 6226

North American business results: 1) comprehensive branding and product marketing, 2)

Kazuki Oike

strengthened sales of globally popular products, 3) active engagement in community

Associate Analyst

activities, and 4) decisive restructuring. kazuki.oike@ubs.com

+81-3-5208 6964

Regarding branding and product marketing, efforts to improve low brand recognition

included not only continuous consumer outreach through media to promote Uniqlo's

LifeWear brand philosophy but also active engagement by local management with

employees to question and instill Uniqlo's raison d’être. This approach enhanced

employee understanding, boosted their motivation, and improved the level of customer

service.

Strengthening sales of globally marketable products: The company has promoted 25

high-quality, low-cost items, such as T-shirts, denim clothing, and coloured socks, both

online and at physical stores. In terms of restructuring, it has moved away from discount-

driven sales, closed unprofitable stores, and renegotiated rents. During the meeting,

management confirmed that these initiatives have improved employee satisfaction,

Highlights (¥b) 08/23 08/24 08/25 08/26E 08/27E 08/28E 08/29E 08/30E

Revenues 2,766.6 3,103.8 3,400.5 3,912.9 4,323.0 4,772.2 5,242.3 5,603.5

Operating profit 381.1 500.9 564.3 711.9 802.4 892.5 984.2 1,057.7

Pre-tax profit 437.9 557.2 650.6 766.9 852.4 942.5 1,034.2 1,107.7