Investment Rating - The investment rating for the industry is "Positive" and maintained [6] Core Insights - In FY2026Q1 (from September 1, 2025, to November 30, 2025), the company achieved revenue and net profit of 1,027.7 billion yen and 147.4 billion yen, respectively, representing a year-on-year increase of 15% and 12%. Both figures exceeded Bloomberg consensus estimates of 990.2 billion yen for revenue and 130.1 billion yen for net profit [2][4] - The performance of Uniqlo in Japan and overseas showed year-on-year revenue growth of 12% and 20%, respectively. The Greater China region saw a revenue increase of 7%, marking a return to positive growth, while other regions continued to experience high growth [2][4] Summary by Sections Latest Performance - For FY2026Q1, the company reported revenue of 1,027.7 billion yen and net profit of 147.4 billion yen, with year-on-year growth of 15% and 12%, respectively. This performance surpassed market expectations [2][4] Regional Performance - Japan: Revenue increased by 12% year-on-year, with strong sales in autumn/winter products and a double-digit growth in sales from overseas tourists, contributing to a same-store sales growth of 11% [10] - Greater China: Revenue grew by 7% year-on-year, rebounding from a decline of 10% in the previous quarter, driven by colder weather and improved operational efficiency [10] - Other Asia and Oceania: Revenue increased by 22% year-on-year, with double-digit same-store growth in markets like South Korea and Southeast Asia [10] - North America and Europe: Revenue rose by 33% year-on-year, supported by new store openings and strong sales of winter products [10] Inventory and Guidance - As of FY2026Q1, inventory increased by 6% year-on-year, primarily due to increased stocking of winter products. The company plans to optimize inventory by the end of the next quarter [10] - The revenue guidance for FY2026 is set at 38,000 billion yen (an increase of 11.7% year-on-year), with net profit expected to reach 4,500 billion yen (up 3.9% year-on-year) [10]

Macro Economic Group - The U.S. Department of Justice has initiated a criminal investigation into Federal Reserve Chairman Jerome Powell, focusing on the $2.5 billion renovation project at the Fed's headquarters and whether Powell lied to Congress about project details. Powell responded strongly, claiming the investigation is a pretext to undermine the Fed's independence in setting interest rates based on public interest rather than presidential preferences [2][3] - The investigation was approved in November 2022 and is seen as a move to establish rules for current and future Fed officials, potentially impacting the Fed's independence [2] - The upcoming midterm elections on November 3, 2022, and Trump's concerns about impeachment following potential election losses indicate a need for favorable economic conditions to boost his approval ratings. This pressure on Powell may lead to further interest rate cuts or his resignation [3] Industry Comprehensive Group - The Ministry of Commerce announced progress in negotiations regarding the export of electric vehicles to the EU, which could significantly benefit China's new energy vehicle exports. The reduction of export tax rebates for battery products in 2026 and their complete cancellation in 2027 is expected to stimulate battery export orders [7] - NVIDIA plans to invest $1 billion with Eli Lilly over the next five years to establish an AI drug laboratory, aiming to accelerate drug discovery through robotics and AI. This collaboration is likely to enhance market expectations for AI applications, particularly in the AI chip sector [7] Advanced Manufacturing Group - Research indicates that the price difference in renewable energy is widening, with wind power at about 80% of long-term contract prices and solar power at 60-70%. The profitability of the energy storage market currently relies on capacity subsidies and peak-shaving fees, with future profitability expected to shift towards arbitrage based on peak and valley price differences [9] - The focus in 2026 is expected to shift from scale expansion to system value, emphasizing the ability to manage and predict fluctuations in energy supply and demand [9] Consumer Group - Google and Walmart have announced a deepened collaboration on AI shopping features, marking a significant step towards the commercialization of AI in e-commerce. This partnership aims to enhance the capabilities of AI assistants in product discovery, recommendations, and transactions [11][12] - Fast Retailing reported strong performance for FY26Q1, with revenues of 1,027.7 billion yen, a year-on-year increase of 14.8%. The core brand Uniqlo showed robust growth, particularly in international markets, which is expected to drive demand in the upstream supply chain [13]