US Marketing Feedback

Research evidence excerpt

US Marketing Feedback

Japan | Retailers EquityJuneResearch22, 2026

We have completed our US marketing trip and the most-discussed stocks

were: 1) Fast Retailing, 2) Sanrio, 3) Ryohin Keikaku , 4) 7&i, 5) Japan Airport

Terminal and 6) OLC.

Investors focused on the overall retail landscape given the recent trends in real wages, falling

inbound volume, upcoming change in duty-free rule from November, domestic spending of

general vs. high net worth individuals and the timing/scale of the COGS pressure from the oil

price.

Fast Retailing (9983 JP, Hold): Investors focused on the competitive advantage of the

UNIQLO brand globally. The share price has been strong, noting the impact from the NIkkei

index and the historical high valuation calls for careful entry point. Upside to gross margins

in the US and EU on the back of scale and procurement was another key topic. Market is not

overly concerned about the recovery in China, but still poses risk if it reverts to top line decline,

in our view.

Sanrio (8136 JP, Buy): Positioning appears light and investors see opportunity to accumulate

from the current level given the depressed valuation relative to historical level. The sustainable

growth of character IP is under further assessment with sector headwinds and a tight

correlation to Pop Mart’s share price continuing to cap upside. A decoupling remains a key

catalyst investors are watching for. We think the market is overly pessimistic on the trends

in China and Japan, although most investors are unsure Q4 landing will be enough to cause

material rerating. Governance concerns have been a recurring issue for the company, with

ongoing questions surrounding its North America strategy.

Ryohin Keikaku (7453 JP, Buy): Most inquiries on the reasons for flat share price performance