FAST RETAIL-DRS(US:FRCOY) GF SECURITIES·2026-01-25 12:48Investment Rating - The report assigns a "Buy" rating for the textile and apparel industry, indicating an expectation that stock performance will exceed the market by more than 10% over the next 12 months [46]. Core Insights - The company achieved record high performance in FY2026Q1, with revenue reaching 102.77 billion JPY, a year-on-year increase of 14.81%, driven by the opening of flagship UNIQLO stores and strategic information dissemination [3][4]. - Gross margin for FY2026Q1 was 55.24%, up by 0.77 percentage points year-on-year, while operating profit increased by 33.87% to 21.09 billion JPY [3][4]. - The company expects record revenue and profit for FY2026, projecting total revenue of 380.0 billion JPY (up 11.7% year-on-year) and net profit of 45.0 billion JPY (up 3.9% year-on-year) [3][4]. Revenue Breakdown - UNIQLO brand revenue for FY2026Q1 was 90.29 billion JPY, a 17.51% increase year-on-year, accounting for 87.86% of total revenue [3][4]. - Revenue by region for UNIQLO in FY2026Q1: - Japan: 29.91 billion JPY, up 12.18% - Greater China: 19.12 billion JPY, up 7.03% - Other Asia and Oceania: 18.71 billion JPY, up 22.15% - North America: 8.87 billion JPY, up 30.41% - Europe: 13.70 billion JPY, up 34.26% [3][4]. Store Count and Financial Position - As of the end of the reporting period, the total number of stores reached 3,594, a decrease of 68 stores year-on-year [3][4]. - Cash and cash equivalents (excluding short-term investments) at the end of FY2026Q1 were 92.36 billion JPY, down 22.95% year-on-year [3][4]. Operational Metrics - Accounts receivable turnover days for FY2026Q1 were 19.42 days, an increase of 0.89 days year-on-year [3][4]. - Inventory turnover days for FY2025Q1 were 124.32 days, a decrease of 5.29 days year-on-year [3][4].