United Arrows "Earnings update: We expect OP growth again in the new fiscal..."

Research evidence excerpt

United Arrows "Earnings update: We expect OP growth again in the new fiscal..."

Global Research

20 May 2026ab

United Arrows Equities

JapanEarnings update: We expect OP growth again in

the new fiscal year Retailers, Apparel

12-month rating Neutral

12m price target ¥2,470Action: Earnings update following Q4 results

Prior : ¥2,610

We provide an earnings update following Q4 results. We are updating our earnings

estimates in light of recent sales trends. We maintain our outlook for continued OP Price (20 May 2026) ¥2,370

growth in FY3/27, following on from FY3/26. Reflecting revisions to our earnings RIC: 7606.T BBG: 7606 JP

forecasts and progress in the fiscal year, as well as a revised risk premium reflecting the

recent interest rate hike, we are changing our price target from ¥2,610 to ¥2,470. We Trading data and key metrics

maintain our Neutral rating. 52-wk range ¥2,682-1,916

Market cap. ¥65.5b/US$0.41b

Investment overview Shares o/s 27.6m (ORD)

In the specialty apparel store industry, the bottoming of demand alongside the waning Free float 77%

of the Covid-19 outbreak has driven a recovery in earnings. Indeed, the company moved Avg. daily volume ('000) 219

into the black at the OP level in FY3/22 by optimising inventory, streamlining the offline Avg. daily value (m) ¥549.9

store network and personnel, as well as by strengthening e-commerce. Since then, profit Common s/h equity (03/27E) ¥44.1b

levels remained steady through FY3/25. Aiming to improve its growth potential, the P/BV (03/27E) 1.4x

company is reallocating management resources through the business transfer of Coen, Net debt to EBITDA (03/27E) NM

increasing sales per customer by reinforcing its digital strategy, and continuing to pursue

overseas business opportunities.