Japan retailing sector: 26/8 Q3 and 27/2 Q1 results

Research evidence excerpt

Japan retailing sector: 26/8 Q3 and 27/2 Q1 results

Japan retailing sector: 26/8 Q3 Global Markets Research 9 July 2026

and 27/2 Q1 results

EQUITY: JAPAN RETAILING

Research Analysts

Fast Retailing, Seven & i Holdings, Sugi Holdings Japan retailing

Hisahiro Yamaoka - NSC

hisahiro.yamaoka@nomura.comQuick Note +81 3 6703 1680

Fast Retailing [9983] (Neutral): 26/8 Q3 results

First impression positive: Uniqlo International remains strong

Q3 business profits came in at ¥205.8bn (up 45% y-y) versus our forecast of ¥177.5bn.

Q3 business profits at Uniqlo Japan rose 18% to ¥62.2bn versus our forecast of ¥58.5bn.

Business profits at Uniqlo International rose 65% to ¥112.3bn versus our forecast of

¥94.7bn. Considering the strong sales, it comes as no surprise to us that profits at Uniqlo

Japan beat our forecast. In overseas operations, sales were strong in Europe, North

America, and Southeast Asia, and sales also look to have been solid in Greater China.

Results were favorable, and we like the way that LifeWear products have been making

further inroads globally. The company raised 26/8 business profit guidance from ¥690.0bn

to ¥710.0bn (our forecast: ¥700.7bn). We still see good prospects for earnings growth,

especially at Uniqlo International, despite the uncertain external environment.

Seven & i Holdings [3382] (Neutral): 27/2 Q1 results

First impression in line: Boost from gross profits on gasoline, but no surprises in

earnings

In 27/2 Q1, operating profits rose 61% y-y to ¥105.0bn (our forecast: ¥52.1bn). At Seven-

Eleven Japan, SG&A costs, including advertising costs, were higher than we had

expected. However, better-than-expected gross profits on gasoline (cents per gallon;

CPG) at 7-Eleven, Inc. led to better-than-expected companywide profits. That said, we