FAST RETAILING (9983) 3Q FY8/26 results: Strong, global operating leverage effect continues

Research evidence excerpt

FAST RETAILING (9983) 3Q FY8/26 results: Strong, global operating leverage effect continues

J P M O R G A N Asia Pacific Equity Research

10 July 2026

FAST RETAILING (9983) Overweight

9983.T, 9983 JP

3Q FY8/26 results: Strong, global operating leverage Price (09 Jul 26):¥85,170

effect continues Price Target (Dec-26):¥82,000

Significant positive surprise: As in 1Q and 2Q, 3Q operating profit was a positive Japan Equity Research

surprise at ¥213.7 billion, up 45.7% YoY and about ¥30 billion above our estimates

Retail

as of April 24 of ¥180 billion and our assumption of the latest market expectation

of around ¥185 billion. The upward revision to full-year guidance was also Dairo Murata AC

positive. The results confirmed continued strength in the domestic and overseas (81-3) 6736 8620

dairo.murata@jpmorgan.com

Uniqlo businesses, and we have a positive impression of GU. Given the 3Q results,

Ami Terai

we expect the market’s earnings expectations to rise and the stock to perform well. (81-3) 6736-8660

• 3Q overview: Sales rose 22% YoY, the gross margin improved 1.7 ppt YoY, ami.terai@jpmorgan.com Kazuha Matsuo and expenses rose 17.5% YoY. Sales and the gross margin substantially

(81-3) 6736-8614

overshot our forecasts (16.8% YoY sales growth, 1.0ppt gross margin kazuha.matsuo@jpmorgan.com

improvement, and a 16.2% expense increase). Although the weak yen had a JPMorgan Securities Japan Co., Ltd.

larger impact than we expected, the main reason for the overshoot was

continued strong operating leverage, as the success of global marketing led to

strong sales in the domestic and overseas Uniqlo businesses, limited

discounting losses, and an improved expense ratio. Sales in Greater China,

other parts of Asia, North America, and Europe rose 16% YoY, 40%, 42%, and